# EDGAR Filing Document

**Accession Number:** 0001132924
**File Stem:** 0001193125-26-155848
**Filing Date:** 2026-4
**Character Count:** 851923
**Document Hash:** 1833acc10256fac3dcf64f834a24f65f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-155848.hdr.sgml**: 20260416

**ACCESSION NUMBER**: 0001193125-26-155848

**CONFORMED SUBMISSION TYPE**: 20-F

**PUBLIC DOCUMENT COUNT**: 245

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260415

**DATE AS OF CHANGE**: 20260415

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CHUNGHWA TELECOM CO LTD
- **CENTRAL INDEX KEY:** 0001132924
- **STANDARD INDUSTRIAL CLASSIFICATION:** RADIO TELEPHONE COMMUNICATIONS [4812]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 000000000

**FILING VALUES:**
- **FORM TYPE:** 20-F
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-31731
- **FILM NUMBER:** 26862430

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 21 3 HSINYI RD SECTION 1
- **STREET 2:** TAIPEI TAIWAN REPUBLIC OF CHINAA
- **CITY:** TAIPEI TAIWAN
- **PROVINCE COUNTRY:** F5
- **BUSINESS PHONE:** 886223445488

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 21 3 HSINYI RD SECTION 1
- **STREET 2:** TAIPEI TAIWAN REPUBLIC OF CHINA
- **CITY:** TAIPEI TAIWAN
- **PROVINCE COUNTRY:** F5

?xml version='1.0' encoding='ASCII'? 20-F

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**UNITED STATES SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

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**FORM** 20-F

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**(Mark One)**

☐ **REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934**

**OR**

☒ **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the fiscal year ended** December 31**<u>,</u>** 2025

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**OR**

☐ **SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**Date of event requiring this shell company report For the transition period from to Commission file number** 001-31731

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Chunghwa Telecom Co., Ltd.

**(Exact name of Registrant as specified in its charter) Chunghwa Telecom Co., Ltd. (Translation of Registrant's name into English)** Taiwan**, Republic of China (Jurisdiction of incorporation or organization)** 21-3 Xinyi Road**,** Section 1**,** Taipei**,** Taiwan 10048**, Republic of China (Address of principal executive offices)** Cho-Fen (Angela) Tsai 21-3 Xinyi Road**,** Section 1**,** Taipei 10048**,** Taiwan**, Republic of China Tel:** +886 2 2344-5488 **E-mail:** chtir@cht.com.tw **(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)**

**Securities registered or to be registered pursuant to Section 12(b) of the Act:**

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Shares, par value NT$10 per share | **N/A** | New York Stock Exchange**\*** |
| American Depositary Shares, as evidenced by American<br>**Depositary Receipts, each representing 10 Common Shares**<br>| CHT | New York Stock Exchange  |

---

**Securities registered or to be registered pursuant to Section 12(g) of the Act: None Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None**

Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report.

**<u>7,757,446,545</u> <u>Common Shares</u>** 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ☒ Yes ☐ No

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.  Yes ☒ No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this Chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Emerging growth company ☐

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ☐

† The term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.) 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP ☐ International Financial Reporting Standards as issued by the International Accounting Standards Board ☒ Other ☐

If "Other" has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow. ☐ Item 17 ☐ Item 18

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. ☐ Yes ☐ No

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\* Not for trading, but only in connection with the listing on the New York Stock Exchange of the American Depositary Shares

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**CHUNGHWA TELECOM CO., LTD.**

**FORM 20-F ANNUAL REPORT**

**FISCAL YEAR ENDED DECEMBER 31, 2025**

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
|  |  | Page |
| [<u>SUPPLEMENTAL INFORMATION</u>](#supplemental_information) | [<u>SUPPLEMENTAL INFORMATION</u>](#supplemental_information) | 1 |
| [<u>FORWARD-LOOKING STATEMENTS IN THIS ANNUAL REPORT MAY NOT BE REALIZED</u>](#forward_looking_statements_in) | [<u>FORWARD-LOOKING STATEMENTS IN THIS ANNUAL REPORT MAY NOT BE REALIZED</u>](#forward_looking_statements_in) | 2 |
| [<u>Part I</u>](#part_i) |  | 3 |
| ITEM 1. | [<u>IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS</u>](#item_1_identity_of_directors) | 3 |
| ITEM 2. | [<u>OFFER STATISTICS AND EXPECTED TIMETABLE</u>](#item_2_offer_statistics) | 3 |
| ITEM 3. | [<u>KEY INFORMATION</u>](#item_3_key_information) | 3 |
| ITEM 4. | [<u>INFORMATION ON THE COMPANY</u>](#item_4_information_on_the_company) | 15 |
| ITEM 4A. | [<u>UNRESOLVED STAFF COMMENTS</u>](#item_4a_unresolved_staff_comments) | 41 |
| ITEM 5. | [<u>OPERATING AND FINANCIAL REVIEW AND PROSPECTS</u>](#item_5_operating_and_financial_review) | 42 |
| ITEM 6. | [<u>DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES</u>](#item_6_directors_senior_management) | 56 |
| ITEM 7. | [<u>MAJOR STOCKHOLDERS AND RELATED PARTY TRANSACTIONS</u>](#item_7_major_stockholders_and_related) | 69 |
| ITEM 8. | [<u>FINANCIAL INFORMATION</u>](#item_8_financial_information) | 70 |
| ITEM 9. | [<u>THE OFFER AND LISTING</u>](#item_9_the_offer_and_listing) | 71 |
| ITEM 10. | [<u>ADDITIONAL INFORMATION</u>](#item_10_additional_information) | 71 |
| ITEM 11. | [<u>QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</u>](#item_11_quantitative_and_qualitative) | 86 |
| ITEM 12. | [<u>DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES</u>](#item_12_description_of_securities) | 87 |
| [<u>Part II</u>](#part_ii) |  | 90 |
| ITEM 13. | [<u>DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES</u>](#item_13_defaults_dividend_arrearages) | 90 |
| ITEM 14. | [<u>MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS</u>](#item_14_material_modifications) | 90 |
| ITEM 15. | [<u>CONTROLS AND PROCEDURES</u>](#item_15_controls_and_procedures) | 90 |
| ITEM 16A. | [<u>AUDIT COMMITTEE FINANCIAL EXPERT</u>](#item_16a_audit_committee_financial) | 92 |
| ITEM 16B. | [<u>CODE OF ETHICS</u>](#item_16b_code_of_ethics) | 92 |
| ITEM 16C. | [<u>PRINCIPAL ACCOUNTANT FEES AND SERVICES</u>](#item_16c_principal_accountant) | 92 |
| ITEM 16D. | [<u>EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES</u>](#item_16d_exemptions_from_the_listing) | 92 |
| ITEM 16E. | [<u>PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS</u>](#item_16e_purchases_of_equity_securities) | 93 |
| ITEM 16F. | [<u>CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT</u>](#item_16f_change_in_registrants) | 93 |
| ITEM 16G. | [<u>CORPORATE GOVERNANCE</u>](#item_16g_corporate_governance) | 93 |
| ITEM 16H. | [<u>MINE SAFETY DISCLOSURE</u>](#item_16h_mine_safety_disclosure) | 95 |
| ITEM 16I. | [<u>DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTION</u>](#item_16i_disclosure_regarding_foreign) | 96 |
| ITEM 16J.  | [<u>INSIDER TRADING POLICIES</u>](#item_16j_insider_trading_policies) | 96 |
| ITEM 16K. | [<u>CYBERSECURITY</u>](#item_16k_cybersecurity) | 96 |
| [<u>Part III</u>](#part_iii) |  | 99 |
| ITEM 17. | [<u>FINANCIAL STATEMENTS</u>](#item_17_financial_statements) | 99 |
| ITEM 18. | [<u>FINANCIAL STATEMENTS</u>](#item_18_financial_statements) | 99 |
| ITEM 19. | [<u>EXHIBITS</u>](#item_19_exhibits) | 100 |

---

i

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**SUPPLEMENTAL INFORMATION**

All references to "we," "us," "our," "Chunghwa Telecom" and "our company" in this annual report are to Chunghwa Telecom Co., Ltd. and our consolidated subsidiaries, unless the context otherwise requires. All references to "shares" and "common shares" are to our common shares, par value NT$10 per share, and to "ADSs" are to our American depositary shares, each of which represents ten of our common shares. The ADSs are issued under the deposit agreement, as amended, supplemented or modified from time to time, originally dated as of July 17, 2003, among Chunghwa Telecom Co., Ltd. and the Bank of New York, amended and restated on November 14, 2007, among Chunghwa Telecom Co., Ltd. and JP Morgan Chase Bank, as depository, and the holders and beneficial owners of American Depositary Receipts issued thereunder, and further amended and restated on December 27, 2023, among Chunghwa Telecom Co., Ltd. and JPMorgan Chase Bank, N.A., as depository, and the holders of American Depositary Receipts issued thereunder. All references to "Taiwan" are to the island of Taiwan and other areas under the effective control of the Republic of China. All references to "the government" or "the ROC government" are to the government of the Republic of China. All references to "the Ministry of Transportation and Communications" or "the MOTC" are to the Ministry of Transportation and Communications of the Republic of China. All references to "the National Communications Commission" or "the NCC" are to the National Communications Commission of the Republic of China. All references to the "Securities and Futures Bureau" are to the Securities and Futures Bureau of the Republic of China or its predecessors, as applicable. "ROC GAAP" means the generally accepted accounting principles of the Republic of China, "U.S. GAAP" means the generally accepted accounting principles of the United States, "IFRSs" means International Financial Reporting Standards as issued by the International Accounting Standards Board, and "Taiwan IFRSs" means the International Financial Reporting Standards as issued by the International Accounting Standards Board and endorsed by the Financial Supervisory Commission, or the FSC, which are required to be adopted by applicable companies in the ROC pursuant to the "Framework for Adoption of International Financial Reporting Standards by Companies in the ROC" promulgated by the FSC on May 14, 2009. Any discrepancies in any table between totals and sums of the amounts listed are due to rounding. Unless otherwise indicated, or the context otherwise requires, references in this annual report to financial and operational data for a particular year refer to the fiscal year of our company ending December 31 of that year. When we refer to our "privatization" or our being "privatized" in this annual report, we mean our status as a non-state-owned entity after the government reduced its ownership of our outstanding common shares, including our common shares owned by entities majority-owned by the government, to less than 50%. We were privatized on August 12, 2005.

We publish our consolidated financial statements in New Taiwan dollars, the lawful currency of the Republic of China. In this annual report, "NT$" and "NT dollars" mean New Taiwan dollars, "$," "US$" and "U.S. dollars" mean United States dollars. For the convenience of readers, NT dollar amounts used in this annual report for, and as of, the year ended December 31, 2025 have been translated into U.S. dollar amounts using US$1.00=NT$31.37, set forth in the statistical release of the Federal Reserve Board of the United States on December 31, 2025. The U.S. dollar translation appears in parentheses next to the relevant NT dollar amount. We make no representation that any New Taiwan dollar amounts or U.S. dollar amounts referred to in this annual report could have been or could be converted into U.S. dollars or NT dollars, as the case may be, at any particular rate or at all. On April 1, 2026, the exchange rate was NT$31.96 to US$1.00.

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**FORWARD-LOOKING STATEMENTS IN THIS ANNUAL REPORT MAY NOT BE REALIZED**

This annual report contains forward-looking statements, including statements regarding:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•general local and global economic conditions and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the political stability of our local region;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our business and operating strategies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our network expansion plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our business, operations and prospects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our financial condition and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our dividend policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the telecommunications industry regulatory environment in Taiwan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•future developments in the telecommunications industry in Taiwan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•possible disruptions in commercial activities caused by natural and human-induced disasters, including the effects of climate changes, outbreaks of contagious diseases and cybersecurity incidents.

These forward-looking statements are generally indicated by the use of forward-looking terminology such as "believe," "expect," "anticipate," "estimate," "plan," "aim," "seek," "project," "may," "will" or other similar words that express an indication of actions or results of actions that may or are expected to occur in the future. These statements reflect our current views with respect to future events and are subject to risks, uncertainties and assumptions, many of which are beyond our control. The forward-looking statements are contained principally in the sections entitled "Item 3. Key Information—D. Risk Factors," "Item 4. Information on the Company" and "Item 5. Operating and Financial Review and Prospects." These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. You should not place undue reliance on these statements, which apply only as of the date of this annual report. These forward-looking statements are based on our own information and on information from other sources we believe to be reliable. Actual results may differ materially from those expressed or implied by these forward-looking statements. Factors that could cause differences include, but are not limited to, those discussed under "Item 3. Key Information—D. Risk Factors." In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this annual report might not occur and our actual results could differ materially from those anticipated in these forward-looking statements. The forward-looking statements made in this annual report relate only to events or information as of the date on which the statements are made in this annual report. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. You should read this annual report completely and with the understanding that our actual future results may be materially different from what we expect.

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**PART I**

**ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS**

Not applicable.

**ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE**

Not applicable.

**ITEM 3. KEY INFORMATION**

**A. [Reserved]**

**B. Capitalization and Indebtedness**

Not applicable.

**C. Reasons for the Offer and Use of Proceeds** 

Not applicable.

**D. Risk Factors** 

Our business and operations are subject to various risks, many of which are beyond our control. If any of the risks described below actually occurs, our business, financial condition or results of operations could be seriously harmed.

**Risks Relating to Our Company and the Taiwan Telecommunications Industry**

***Extensive regulation of our industry may limit our flexibility to respond to market conditions and landscape, and our business and revenues may suffer.***

As a telecommunications service provider in Taiwan, we are subject to extensive regulation. According to the ROC Telecommunications Management Act, or the TMA, telecommunications enterprises shall register themselves with the NCC and become subject to the TMA. We applied for registration on July 31, 2020, and received approval from the NCC on September 30, 2020. Since then, we have become subject to the TMA. On April 15, 2022, the NCC announced that two retail service markets (i.e., the fixed-line voice market and the fixed-line broadband market) and three wholesale service markets (i.e., the fixed-line wholesale market, fixed-line voice access market and the mobile voice access market) are designated as specific telecommunications service markets; on June 5, 2023, we were officially determined to be the telecommunications enterprise with significant market power in the aforementioned five specific telecommunications service markets subject to special control measures, including fee control, accounting separation, information transparency and non-discrimination treatment. Since the NCC has not yet updated the definition for the scope of market, the current announcements will still be the primary basis for such assessment. See "Item 4. Information on the Company—B. Business Overview—Regulation" for more information on the regulatory environment.

With respect to the special control measures relating to fee control, the NCC announced the promulgation of the "Primary Fees, Adjustment Coefficients and Years of Implementation for Price Cap Control Enforced on Significant Market Power in the Fixed Communication Network Voice Retail Service Market, Fixed Communication Network Broadband Retail Service Market and Fixed Communication Network Wholesale Service Market" on June 2, 2023, and the promulgation of the "Upper Limits on the Termination Rates for Voice Service over Fixed Network Provided by Significant Market Powers" on June 5, 2023, which constrain our ability to raise prices. On March 15, 2024, the NCC announced that, effective from April 1, 2024, the "monthly rental fee of broadband network circuit" were enforced to be reduced by "3.32% minus annual growth rate of the Consumer Price Index (CPI)," excluding the circuits of ADSL, that with download speed at and below 12 Mbps and that with download speed at 300 Mbps and above. For the fixed-line wholesale services, including the private circuits,

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broadband network wholesale circuits and internet interconnection bandwidth, the fees were enforced to be reduced by "5.09% minus annual growth rate of CPI," excluding the circuits with download speed at and under 2 Mbps. The NCC announced on July 17, 2024 that from 2025 to 2028, the "Upper Limits on the Termination Rate for Voice Service over Mobile Network Provided by Significant Market Powers" will be lowered, year by year, from the current NT$0.407 to NT$0.330 per minute, with an aggregate decrease of about 19%. The Termination Rate for Voice Service over Mobile Network was NT$0.386 in 2025. See "Item 4. Information on the Company—B. Business Overview—Regulation" and "Item 5. Operating and Financial Review and Prospects—Overview—Tariff adjustments." We cannot assure you that we will not be required to further reduce our tariffs again in the future. Any mandatory tariff reductions could have a material adverse effect on our revenues.

***If we fail to comply with the regulations of the ROC Fair Trade Act, we may be investigated and fined.*** 

As a provider of telecommunication products and services, our business operations are subject to the regulations of the ROC Fair Trade Act, or the FTA, which is administered and enforced by the ROC Fair Trade Commission, or the FTC. The FTA requires, among other things, that the marketing and promotional materials of a business to be true and not misleading. The FTA also prohibits a business from participating or engaging in a cartel or other anti-competitive conduct. The FTC has the authority under the FTA to investigate and, where appropriate, impose fines and penalties on a business that violates any regulations promulgated by the FTA. The consequences of any such violations could have a material adverse effect on our business and results of operations. See "Item 4. Information on the Company—B. Business Overview—Regulation" for a discussion of the FTA applicable to us. We have been investigated and penalized by the FTC in the past and may continue to be investigated or penalized by the FTC if we fail to comply with the relevant regulations*.* As the FTA provides the FTC broad discretion to interpret cartel or other anti-competition actions and enforce the relevant clauses under the FTA and FTC might take a different view of our existing business operation in the wake of advancement of global regulatory trend, we are unable to predict whether or when the FTC would initiate investigations on any of our daily business activities or find us liable for violating the FTA in the future. The investigations of any penalties imposed by the FTC could interrupt our provision of products or services and have a negative impact on our reputation, business operations and results of operations.

***If we do not or are unable to obtain and maintain necessary approvals to operate our business, our business prospects and future results of operations would be adversely affected.*** 

We operate our businesses with approvals (including licenses) granted by the government and we have obtained necessary approvals to provide our services. If these approvals are revoked or suspended or are not renewed, or if we are unable to obtain any necessary approvals that we may need to operate or expand our business in the manner we desire, our financial condition and results of operations, as well as our prospects, will suffer and we may lose our customers and market share and become less profitable.

If we are unable to successfully acquire and maintain the rights to use the frequency spectrums or other approvals that we may need for our future business operations, our business prospects and future results of operations may be materially and adversely affected.

***Market landscape may adversely affect our growth and profitability by causing us to lose customers, charge lower tariffs, spend more on marketing or lose market share.*** 

The market landscape of the telecommunications industry in Taiwan is constantly changing. After two operators were merged in December 2023, the number of mobile network operators in Taiwan decreased from five to three, including us, and the degree of concentration of the telecommunication industry in Taiwan has been increasing. In 2025, our competitors have placed greater emphasis on integrating their network and customer service capabilities, among other areas. We anticipate that this integration may boost their competitiveness. We will be dedicated to meeting customer demands, driving revenue growth, and increasing 5G penetration, among other priorities. However, we cannot assure you that we can successfully manage these risks or develop effectively to maintain our market share and customer base, achieve economies of scale or sustain our profit margin under the increased market concentration. If we fail to do so, our business, results of operation and financial conditions may be adversely affected.

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Our primary advantages lie in our leading 5G service and the design of effective tariffs. In 2025, the strategy of our mobile business was to focus on promoting the highest quality of 5G service to our subscribers. More subscribers upgrading to 5G plans will increase the possibility of raising our mobile services revenues. However, mobile network operators might offer aggressive programs to attract consumers, such as unlimited low-priced data plans. We cannot assure you that we will be able to constantly raise our revenues from mobile broadband services in light of the current market landscape, which could have a material adverse effect on our business prospects and our future results of operations.

Cable operators mainly promote high-speed internet access and TV converging solutions, and the bundled price is about 10% to 20% off ours. Furthermore, they offer low-price promotions of about 40% to 60% off ours for competitors' subscribers and expand sales channels through cross-industry alliances. Competitors may also roll out aggressive marketing plans such as bundling broadband internet and 4G/5G mobile services to stir the market. Although we have rolled out Multiple-Play Package of mobile service, broadband service and Wi-Fi bundled plans, we still face intensified low-price strategies from other cable operators for our broadband access and IPTV services. If we are unable to achieve a favorable position compared with the cable operators for broadband access and multimedia-on-demand, or MOD, services, our results of operations could be impacted.

As mobile data access speeds have increased with the advancement of technologies, many of our customers have replaced fixed broadband services with high-speed mobile broadband services, especially those who used lower-speed fixed broadband services. Any of these developments could adversely affect our business, financial condition and results of operations.

***As an internet service provider, we may not be able to protect our customers and their information from cyberattacks, nor protect our services or those of our partners with whom we share our confidential information from disruptions due to cybersecurity breaches.*** 

Driven by emerging technologies such as artificial intelligence, or AI, Internet of things, or IoT, and cloud services, cybersecurity threats have evolved into multi-faceted mixed attacks. To improve and expand our services, we utilize third-party AI algorithms and models to power our intelligent customer and counter services. However, we do not have control over the stability of these external AI solutions. Any technical issues, service interruptions, or performance declines could adversely impact our business continuity and customer satisfaction. In addition, AI solutions are subject to hacking, spamming, viruses, software malfunction, and other computer vulnerabilities and technical glitches or maintenance failures, and we depend on the security protocols of these third-party partners to safeguard our systems as well as our customers' and our data.

We have established an AI management framework and operational organization that complies with the ISO 42001 standard. Additionally, we conduct risk identification and assessment in accordance with the "National Critical Infrastructure Application of Artificial Intelligence Reference Guidelines, "implementing control measures to mitigate the potential risks associated with AI technology. However, we cannot assure the sufficiency of these measures against cyber threats or operational failure. Should third-party AI solutions fall victim to cyber-attacks, our operations might be hindered, and our customers' and our data could be exposed, tampered with, or lost, severely damaging customers' rights, undermining our business and causing us penalties and financial losses. In addition, malware attacks, which are often imbedded into supply chain software, have become more frequent and diverse, and would adversely impact business services or privacy leakage.

The Cyber Security Management Act came into force on January 1, 2019. According to the Act, a critical infrastructure provider shall satisfy the requirements of the cybersecurity responsibility level, to amend and implement the cybersecurity maintenance plan. The "Administration Regulations of Cyber Security on Telecommunications Business," promulgated pursuant to the "Telecommunications Management Act," was enforced on July 1, 2020. According to the Regulations, telecommunications enterprises shall establish a cybersecurity maintenance plan and implement it accordingly. If we fail to comply with such requirements, we may be subject to administrative penalties. We may suffer negative consequences, such as remedial costs, increased cybersecurity protection costs, lost revenues, litigation and reputational damage due to cyberattacks. See "Item 16K. Cybersecurity."

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***If new technologies adopted by us do not perform as expected, or if we are unable to effectively deliver new services based on these technologies in a commercially viable manner, our revenue growth and profitability will decline.*** 

We are constantly evaluating new growth opportunities. Some of these opportunities involve new services for which there are no proven markets, and may not develop as expected. Our ability to deploy and deliver these services will depend, in many instances, on new but unproven technologies. These new technologies may not perform as expected or generate an acceptable return. In addition, we may not be able to develop new technologies to effectively, competitively and economically deliver these services. In the era of 5G, generative AI and the information and communication technology, or ICT, realm, there could be more services beyond that of standard operators by delivering services via a B2B2X model, which is substantially dependent on the availability of applications and devices developed by third parties. If we fail to deliver commercially viable services based on the new technologies that we adopt, our financial condition and results of operations may be materially and adversely affected. In addition, we may need to cooperate with certain third parties to deliver these new services. To the extent that these third parties fail to perform their obligations, our services, financial condition and results of operations may be materially and adversely affected.

***Our ability to deliver services may be disrupted due to systems failures, network shutdowns, earthquakes or other natural disasters.***

Our ability to deliver services could be disrupted by systems failures, network shutdowns or other unanticipated problems at our facilities. For example, our submarine cables might be broken due to removals of sand and gravel by certain sand pumper dredgers, which would cause suspensions of our fixed line services, MOD, broadband access and mobile services.

Taiwan is also susceptible to earthquakes and typhoons. However, we do not carry insurance to cover damage caused by earthquakes, typhoons or other natural disasters, including the effects of climate changes (such as drought, floods and increased storm severity), or any resulting business interruption. Our services are currently carried through our fixed and mobile communications networks, as well as through our transmission networks consisting of optical fiber cable, microwave, submarine cable and satellite transmission links, which could be vulnerable to damage or interruptions in operations due to natural disasters. The occurrence of natural disasters could impact our ability to deliver services and have a negative effect on our results of operations. In 2025, we recorded losses on property, plant and equipment arising from natural disasters such as earthquakes and typhoons in the amount of approximately NT$46.60 million (US$1.49 million). Furthermore, we might also be liable for losses claimed from our customers that were incurred from our failure to deliver our services. These potential liabilities could also have a material adverse effect on our results of operations.

***Effects of climate change may result in potential adverse impacts on our business, financial conditions and results of operations.*** 

Climate change presents a multifaceted risk landscape for our company. The escalating frequency and severity of extreme weather events, such as typhoons, floods, high temperatures and wildfires, pose a direct threat to our physical infrastructures, such as Internet Data Centers, or IDCs, and base stations, potentially leading to service disruptions and heightened operational costs associated with maintenance, repairs and replacements. Moreover, the global shift towards stringent climate change-related policies amplifies regulatory risks. Compliance with evolving international and industry standards as well as additional disclosure requirements incur costs and potentially strain financial resources. For example, the imposition of carbon fees or other regulatory fees in a jurisdiction where we operate could result in substantially higher compliance costs. In particular, in response to global climate change, Taiwan adopted the Climate Change Response Act (formerly known as the Greenhouse Gas Reduction and Management Act) in February 2023, which establishes the goal of achieving net-zero emissions by 2050 and introduced the carbon pricing system. Starting in 2026, the Ministry of Environment requires telecommunications service providers with more than 100 retail stores to conduct greenhouse gas (GHG) inventories and reporting. Although we meet the applicable threshold, under the current regulatory framework, entities in the telecommunications industry are required only to submit greenhouse gas emissions inventory data. We are not, at this time, subject to mandatory third-party verification requirements, nor are we included within the scope of entities subject to the carbon levy. However, the imposition of any additional regulatory fees, together with future legislative

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and regulatory developments, may increase our compliance costs or subject us to further operational restrictions, which may adversely affect our financial condition. In addition, the requirements for climate-related disclosures continue to expand. Taiwan's Financial Supervisory Commission (FSC) has announced that listed companies will be required to include climate-related information in their annual reports, aligning with the IFRS Sustainability Disclosure Standards in the coming future. We have taken proactive steps to comply with applicable regulations, which has resulted in and may continue to result in additional costs and efforts. Furthermore, beyond immediate operational and financial impacts, there also exists higher market expectation for large enterprises like us to take more initiatives and responsibility. Failure to meet these expectations may result in reputational damage and a potential loss of customer trust.

We always commit to the adaptation and mitigation of climate change and reducing operational risks of our business. For example, we adopted the Task Force on Climate-related Financial Disclosure, or TCFD, in 2020. Since then, we have continuously disclosed information on governance, strategy, risk management as well as metrics and goals regarding climate-related risks and opportunities in our sustainability report and on our official website. We also set detailed carbon emission management targets to achieve the goal of 2045 net-zero emissions. Our carbon emission management targets include achieving a 50% reduction of scope 1 and 2 carbon emissions by 2030 compared with the level in 2020, and using 100% renewable energy for IDCs by 2030 and for the Company by 2040. For further initiatives and measures we adopt in response to climate-related challenges, please refer to "Item 4. Information on the Company — B. Business Overview — Corporate Responsibilities: Environmental, Social and Governance (ESG) Initiatives." However, we cannot assure you that we will be successful in achieving these goals or transitioning to low-carbon operations as we have committed. If we fail to do so, our business, financial conditions, results of operations and reputation may be adversely affected.

***Our long-term international bandwidth supply may be disrupted by unexpected delays for new international submarine cables.***

The complicated permitting processes for our submarine cables have caused unexpected delays on operation and construction. For example, the completion of our APRICOT submarine cable was postponed to 2028. In the foreseeable future, submarine cables remain an indispensable international bandwidth solution, especially for Taiwan, and cannot be replaced by alternatives such as satellite and microwave transmission. Any disruption on these new submarine cable projects would not only impact our services for individual customers but also jeopardize our IDC operations, terrestrial links, and international bandwidth sales, and eventually may have a material adverse effect on our business.

***Changes in technology may render our current technologies obsolete or require us to obtain approvals for introducing new services or make substantial capital investments, financing or successfully manage our liquidity and cash flows.*** 

The telecommunications industry in Taiwan has been characterized by rapid increases in the diversity and sophistication of the technologies and services offered. As a result, we need to constantly upgrade our telecommunications technologies and services to respond to evolving industry conditions and customer requirements, rendering some less advanced technologies obsolete. The cost of implementing new technologies, such as the use of generative AI, AI Agents, and large-scale computing infrastructure, upgrading our networks or expanding capacity could be significant. In particular, we have made and will continue to make substantial capital expenditures in the near future to effectively respond to technological changes and meet the increasing high-bandwidth requirements driven by advanced computing and AI workloads. After obtaining 5G mobile broadband services spectrum, we started our expansion and optimization of our 5G network coverage and capacity, which would require additional financing. However, our ability to obtain additional financing will depend on a number of factors, including, but are not limited to, our financial condition, results of operations, financing cost, telecommunications industry conditions, financial market conditions, and relevant government and other regulatory approvals. Furthermore, failure to comply with covenants in our debt documents or repay debts when due may negatively affect our credit ratings, which will cause our financing costs to increase and weaken our fundraising capabilities, further affecting our liquidity position and financial condition.

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Any inability to obtain the funding for our capital expenditures on commercially acceptable terms could jeopardize our expansion plans and materially and adversely affect our business prospects and future results of operations.

***We may not realize the benefits we expect from our investments, which may materially and adversely affect our business, financial condition, results of operations and prospects.*** 

We have made significant capital investments in our network infrastructure and information technology systems. To continue developing our business and offer more attractive and innovative services/solutions, we intend to continue making substantial capital expenditures in different areas and new technologies. However, customer acceptance of those new services/solutions may not be at the expected rate or level, or it may be unable to satisfy our customers' demands in time, thus impairing the expected return from our investments.

We cannot assure you that services enabled by the advanced and evolving technologies we are adopting, such as generative AI and AI-driven automation, edge-to-cloud integration, Open RAN (O-RAN), and All-Photonic Network (APN), will be accepted by customers as expected. In addition, there might be risks of unforeseen complications in deploying these new services and technologies, and we cannot assure whether anticipated capital expenditures for providing such services will exceed our estimate. These new services and technologies may not be developed or deployed on schedules or may not reach expected commercial benefits.

The failure of any of our services to achieve commercial acceptance could result in additional capital expenditures or a reduction in profitability to the extent that we are required under applicable accounting standards to recognize a charge for impairment of assets. Any such charge could materially and adversely affect our financial condition and results of operations. We recognized an impairment loss for investment properties, property, plant and equipment, as well as intangible assets in the past. In 2025, we concluded that the recoverable amount representing the fair value less costs of disposal of investment properties was higher than the carrying amount. Therefore, we recognized a reversal of impairment loss of NT$28.4 million (US$0.9 million) for investment properties. On the other hand, in 2025, we also evaluated and determined that the recoverable amount of certain telecommunications equipment was nil and recognized an impairment loss of NT$112.2 million (US$3.6 million) for property, plant and equipment as a result.

Furthermore, we cannot assure you that we will be able to maintain control of and consolidate the results of operations of our minority-owned subsidiaries. For example, we consolidated the results of operations of SENAO because we have remained in control over SENAO's relevant activities and the governance of the entity. Please refer to Note 3 and Note 15 to our consolidated financial statements included in this annual report for details. We might be unable to maintain control over SENAO's relevant activities, which could adversely affect our consolidated results of operations and ability to meet the operating results guidance that we have projected.

We may also make equity investments in companies from time to time, but we cannot assure you of their profitability and whether any losses related to our equity investments will not have a material adverse effect on our financial condition or results of operations. For example, we invested in Next Commercial Bank Co., Ltd., or NCB, in 2020. Although NCB launched its services on March 29, 2022 and serves as a pivotal strategic investment for our company's fintech strategy, it has yet to generate profits.

***Our largest stockholder may take actions that conflict with our public stockholders' best interests.***

As of December 31, 2025, our largest shareholder, the government of the ROC, through the MOTC, owned approximately 35.29% of our outstanding common shares. Accordingly, the government, through its control over our board, as all non-independent board members were appointed by the MOTC, may continue to have the ability to control our business, including matters relating to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any sale of all or substantially all of our assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the approval of our annual operation and projects budget;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the composition of our senior management;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the timing and distribution of dividends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the election of a majority of our directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our business activities and direction.

We cannot assure you that our largest shareholder will not take actions that impair our ability to conduct our business competitively or conflict with the best interests of our public stockholders.

***Any outbreak of contagious diseases may materially and adversely affect our business and operations, as well as our financial condition and results of operations.***

Any outbreak of contagious diseases, such as COVID-19, influenza, Zika virus, dengue fever or Ebola virus, may disrupt our ability to adequately staff our business and disrupt our operations. If any of our employees is suspected of having contracted any contagious disease, we may, under certain circumstances, be required to implement a work-from-home or quarantine policies. Any such outbreak may also restrict the extent of economic activity in affected regions as governments may adopt measures such as travel restrictions and quarantine policies to combat the diseases, and the relevant effects may last for a long time. The resurgence or occurrence of any contagious diseases and the adoption of similar measures may have a material adverse effect on our business, financial condition and results of operations.

***Actual or perceived health risks related to mobile handsets and base stations could lead to decreased mobile service usage and difficulties in increasing network coverage and could expose us to potential liability.***

According to some published reports, the electromagnetic signals from telecom equipment such as mobile handsets, cellular base stations, and satellite user terminals may pose health risks or interfere with the operation of electronic equipment. Although the findings of those reports are disputed, actual or perceived risks of using mobile communications devices or of cellular base stations could have a material adverse effect on mobile service providers, including us. For example, our customer base could be reduced, our customers may reduce their usage of our mobile services, we could encounter difficulties in obtaining sites for additional cellular base stations required to expand our network coverage or we may be requested to reduce the number of existing cellular base stations. As a result, our mobile services business may generate less revenues and our financial condition and results of operations may be materially and adversely affected. In addition, we could be exposed to potential liability for any health problems caused by mobile handsets and base stations.

***If we fail to maintain a good relationship with our labor unions, work stoppages or labor unrest could occur and the quality of our services as well as our reputation could suffer.***

In accordance with the articles of association of Chunghwa Telecom Workers' Union, except for the chief manager of each department, most of our employees are members of our principal labor union, the Chunghwa Telecom Workers' Union. Since our incorporation in 1996, we have experienced disputes with our labor unions on issues such as employee benefits and retirement benefits in connection with our privatization as well as the right to protest. In spite of having taken measures to improve relations, increase cooperation and ensure mutual benefit with our labor unions, such as increasing channels of communications by holding periodic labor resource review meetings and guaranteeing our labor unions a seat on our board of directors, we cannot assure you that we will be able to maintain a good relationship with our labor unions. Any deterioration in our relationship with our labor unions could result in work stoppages, strikes or threats to take such an action, which could disrupt our business and operations, materially and adversely affect the quality of our services and harm our reputation.

***Our business and operation may be adversely impacted if we fail to achieve and maintain effective internal control or if our independent registered public accountants are unable to attest to or express an unqualified opinion on the effectiveness of our internal controls over financial reporting.*** 

We are subject to the reporting requirements of the SEC. The SEC, as directed by Section 404 of the U.S. Sarbanes-Oxley Act of 2002, adopted rules requiring U.S. public companies to include a report of management on our internal control over financial reporting in their annual reports that contain an assessment by management of the

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effectiveness of our internal control over financial reporting. The effectiveness of our internal control over financial reporting has been audited by PricewaterhouseCoopers, Taiwan, an independent registered public accounting firm, which has also audited our consolidated financial statements for the year ended December 31, 2025. PricewaterhouseCoopers, Taiwan has issued an attestation report on the effectiveness of our internal control over financial reporting in accordance with the standards of the Public Company Accounting Oversight Board (United States).

We are also required to and have policies in place to comply with various ROC and U.S. laws and regulations on internal controls. However, our internal controls, including policies and procedures, may not prevent or detect misstatements or misconduct because of their inherent limitations, including the possibility of human error, the circumvention or overriding of controls, fraud or corruption.

While the management report included in this annual report concluded that our internal control over financial reporting was effective, we cannot assure you that our management will be able to conclude that our internal control over financial reporting will be effective in future years, and that our internal controls can prevent fraud and corruption. If in future years we fail to maintain effective internal controls in accordance with the Sarbanes-Oxley Act or other applicable laws, or if we are found not to be in compliance with applicable laws, we could face investigations or other enforcement actions, be subject to criminal, administrative, and civil penalties and other remedial measures, suffer a loss of investor confidence in the reliability of our consolidated financial statements, which in turn could negatively impact the trading price of our ADSs, and could result in lawsuits being filed against us by our stockholders, lead to adverse impact on our business, or otherwise harm our reputation.

***Any decline in the Taiwan economy, downturn in the global ICT and technology industry, geopolitical uncertainty or slowdown in global economic growth may materially and adversely affect our financial condition, results of operations and prospects.*** 

Our business depends on economic growth, and we conduct our major operations and businesses in Taiwan. We cannot assure you that the economic conditions in Taiwan will continue to improve in the future, and any uncertainty or further deterioration in Taiwan's economic conditions could have a material adverse effect on our financial condition and results of operations. In addition, Taiwan's economy is highly dependent on the global technology industry. Although we have adopted a variety of measures to mitigate risks associated with the global ICT and technology industry, any downturn in the global ICT and technology industry, including but not limited to, global supply chain disruption, tariff increases and trade barriers, interest rate fluctuation, inflation or deflation and changes in economic, fiscal and monetary policies in major economies, exchange rate fluctuation and risk of recession may have a material adverse effect on Taiwan's economy, which in turn could adversely affect the demand for our products and services.

Furthermore, we continue to face a wide range of macroeconomic and geopolitical risks, including rising tensions, armed conflicts, civil unrest and political instability in various regions. These situations have resulted, or may result, in greater economic volatility as well as increased costs related to cybersecurity and network maintenance. Uncertainty regarding future monetary policy across major economies as well as broader volatility and valuation dynamics in global financial markets has been and may continue to be a key consideration for investors. In addition, concerns over a broader global economic downturn, heightened frictions between the U.S. and Mainland China, and ongoing challenges related to climate change may further contribute to turbulence in international financial markets, Taiwan's capital markets, and the global technology industry. Although we conduct most of our operations and generate most of our revenues in Taiwan, a slowdown in global economic growth could still materially and adversely affect our financial condition, operating results and future prospects.

***We are subject to litigation or other legal proceedings that could expose us to substantial liabilities.***

We are from time to time involved in various litigation, arbitration or administrative proceedings in the ordinary course of our business. Any such claims, whether with or without merit, asserted or threatened, could be time-consuming and expensive to defend and could divert our management's attention and resources. See "Item 4. Information on the Company—B. Business Overview—Legal Proceedings." We cannot predict the outcome of these proceedings, and we cannot assure you that if a judgment is rendered against us in any or all of these proceedings, our financial condition and results of operations would not be materially and adversely affected.

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***Our operation may be interrupted, and our expansion may be limited, by power or utility shortage.*** 

Our operation requires a continuous supply of utilities such as electricity and water. Interruptions of electricity or water supply could result in temporary shutdowns of our operation. We may from time to time suffer power outages or surges in Taiwan caused by difficulties encountered by the public utility or other power consumers on the same power grid. Some of these have resulted in interruptions to our operations. Any major suspension, shortage or termination of electricity supply could significantly harm our business, results of operations and financial condition. If we are unable to secure reliable and uninterrupted supply of electricity in Taiwan, our services may be interrupted. Furthermore, we may suffer from a shortage of water in Taiwan, and we may need to incur additional costs and expenses to respond to such shortages in order to maintain our operations and services. Such incremental costs may affect our profitability and results of operations.

***Our success depends on our ability to attract and retain quality personnel.***

In response to the rapidly evolving industry in which we operate, we need to continuously attract and retain skilled technical personnel, while also relying on the continued service of our executive officers. Our business could suffer if we fail to attract qualified personnel or adequately replace them. In particular, we cannot afford to lose any of our talents as attracting qualified professionals is increasingly difficult. Furthermore, any expansion by industry players may intensify the demands for qualified and experienced personnel in the Taiwan telecommunications industry. All three telecommunications operators in Taiwan, including us, are expanding the ICT-related businesses in areas such as cybersecurity, cloud, AIoT, IDC, AI and big data analytics, and may increase their workforce as part of this expansion. In addition to competition from telecom operators, broader technology companies, including computer design firms and hardware manufacturers, are also actively recruiting information technology and engineering personnel, further intensifying the competition for qualified talent. We may also need to increase employee compensation to attract and retain personnel, which could lead to higher operating costs. We cannot assure you that the loss of the services of any of these personnel would not disrupt our business and operations and materially and adversely affect the quality of our services or harm our reputation.

***We face substantial political risks associated with doing business in Taiwan, particularly due to domestic political events and the tense relationship between the ROC and the People's Republic of China, which could adversely affect our financial condition and results of operations.*** 

Our principal executive offices and substantially all of our assets are located in Taiwan, and substantially all of our revenues are derived from our operations in Taiwan. Accordingly, our business, financial condition and results of operations and the market price of our common shares and the ADSs may be affected by changes in ROC governmental policies, taxation, inflation or interest rates and by social instability and diplomatic and social developments in or affecting Taiwan, which are outside the control of us.

Taiwan has a unique international political status. Since 1949, Taiwan and Mainland China have been separately governed. The People's Republic of China, or PRC, claims that PRC is the sole legitimate government in China, and Taiwan is a part of China. In addition, the PRC government has refused to renounce the use of military force to gain control over Taiwan. Past developments in relations between the ROC and the PRC have on occasion depressed the market prices of the securities of companies in the ROC. Relations between the ROC and the PRC and other factors affecting military, political or economic conditions in Taiwan could materially and adversely affect our financial condition and results of operations, as well as the market price and the liquidity of our securities. In addition, the complexities of the relationship between the ROC and PRC require companies involved in cross-strait business operations to carefully monitor their actions and manage their relationships with both ROC and PRC governments. We cannot assure you that we will be able to successfully manage our relationships with the ROC and PRC governments for our cross-strait business operations, which could have an adverse effect on our ability to expand our business and conduct cross-strait business operations.

***Stockholders may have more difficulty protecting their interests under the laws of the ROC than they would under the laws of the U.S.***

Our corporate affairs are governed by our Articles of Incorporation, the TMA, and by the laws governing corporations incorporated in the ROC. See "—Extensive regulation of our industry may limit our flexibility to

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respond to market conditions and landscape, and our business and revenues may suffer." The rights of stockholders and the responsibilities of management and the members of the board of directors of Taiwan companies are different from those applicable to a corporation incorporated in the U.S. For example, controlling or major stockholders of Taiwan companies do not owe fiduciary duties to minority stockholders. As a result, holders of our common shares and ADSs may have more difficulties protecting their interests in connection with actions taken by our management or members of our board of directors than they would as public stockholders of a United States corporation.

***Our actual financial results may differ materially from our published guidance.***

Starting in 2013, we continued to voluntarily publish our operating results guidance on an annual basis in accordance with the Taiwan IFRSs. We may from time to time update our operating results guidance after evaluating the effects of any changes to the estimates and assumptions that we used to calculate the projections of our operating results. Our projections are based on a number of estimates and assumptions that are inherently subject to significant uncertainties and contingencies, including the risk factors described in this annual report. In particular, our projections are forward-looking statements that are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections were based will not materialize or will vary significantly from actual results, and such variances will likely increase overtime. Although our operating income, net income and EPS exceeded our expectations in 2025, our financial results will depend on future developments, which are highly uncertain and cannot be predicted.

***Our results of operations and financial condition under Taiwan IFRSs may differ materially from our reported results of operations and financial condition under IFRSs.***

While we have adopted Taiwan IFRSs for ROC reporting purposes, we adopt IFRSs for certain filings with the SEC, including our annual reports on Form 20-F. Taiwan IFRSs differs from IFRSs in certain significant respects, including to the extent that any new or amended standards or interpretations applicable under IFRSs may not be timely endorsed by the FSC. Furthermore, the dividends for 2025 that are expected to be declared at our 2026 annual general stockholders' meeting are calculated based on Taiwan IFRSs.

**Risks Relating to Ownership of Our ADSs and Common Shares** 

***The value of your investment may be reduced by future sales of our ADSs or common shares by us, by the government of the ROC or by other stockholders.***

The government may continue to sell our common shares. Sales of substantial amounts of ADSs or common shares by the government or any other stockholder in the public market, or the perception that future sales may occur, could depress the prevailing market price of our ADSs and common shares.

***The market value of your investment may fluctuate due to the volatility of, and government intervention in, the Taiwan securities market.***

Our common shares are traded on the Taiwan Stock Exchange, or the TWSE, which has a smaller market capitalization and is more volatile than the securities markets in the U.S. and many European countries. The market value of our ADSs may fluctuate in response to the fluctuation of the trading price of our common shares on the TWSE. The TWSE has experienced substantial fluctuations in the prices and trading volumes of listed securities, and there are currently limits on the range of daily price movements. In 2025, the TWSE Index reached a low of 17,391.76 on April 9, 2025, and peaked at 28,963.60 on December 31, 2025. On April 1, 2026, the TWSE Index closed at 33,174.82. The TWSE has experienced certain problems, including market manipulation, insider trading and payment defaults. The recurrence of these or similar problems could have a material adverse effect on the market price and liquidity of the securities of Taiwan companies, including our ADSs and common shares, in both the domestic and the international markets.

In response to declines and volatility in the securities markets in Taiwan, the government of the ROC formed the National Financial Stabilization Fund to support these markets through open market purchases of shares in Taiwan companies from time to time. The details of the transactions of the National Financial Stabilization Fund

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have not been made public. In addition, the government's Labor Insurance Fund and other funds associated with the government have in the past purchased, and may from time to time purchase, shares of Taiwan companies listed on the TWSE or other markets. As a result of these activities, the market price of common shares of Taiwan companies may have been and may currently be higher than the prices that would otherwise prevail in the open market. Market intervention by government entities, or the perception that such activity is taking place, may take place or has ceased, may cause sudden movements in the market prices of the securities of Taiwan companies, which may affect the market price and liquidity of our common shares and ADSs.

***We may be sanctioned or the network establishment approval granted to us may be abolished for violations of limits on foreign ownership of our common shares, and these limits may materially and adversely affect our ability to obtain financing.*** 

According to the TMA, which was effective from July 1, 2020 (excluding certain articles regarding frequency allocation that was set effective from November 1, 2020), the total amount of our shares directly held by foreigners shall not exceed 49%, and the total amount of our shares directly and indirectly held by foreigners shall not exceed 60%. As of April 1, 2026, foreign direct holdings of our outstanding share capital was at approximately 17.69%. If we fail to comply with the applicable foreign ownership limitations, the network establishment approval granted to us may be abolished. We cannot predict the manner in which the NCC will exercise its authority over us in the case of a violation, or whether the NCC will lower the foreign ownership cap at any time.

If we are deemed to be in violation of our foreign ownership limitations, any consequences arising from such violation may materially and adversely affect us. Moreover, since we are unable to control ownership of our common shares or ADSs representing our common shares, and we have no ability to stop transfers among stockholders, or force particular stockholders to sell their shares, we may be subject to monetary fines, or the network establishment approval granted to us may be abolished, even if there is no fault of our own. In that event, our business could be disrupted, our reputation could be damaged and the market price of our ADSs and common shares could decline. These limitations may also materially and adversely affect our ability to obtain adequate financing to fund our future capital requirements or to obtain strategic partners, and alternate forms of financing may not be available on terms favorable to us, or at all.

***Restrictions on the ability to deposit our common shares into our ADS program may adversely affect the liquidity and price of the ADSs.***

The ability to deposit our common shares into our ADS program is restricted by ROC law, under which no person or entity, including you and us, may deposit our common shares into our ADS program unless the Securities and Futures Bureau has not objected within a prescribed period following the filing with it of an application to do so, except for the deposit of the common shares into our ADS program and for the issuance of additional ADSs in connection with:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•distribution of share dividends or free distribution of our common shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•exercise of preemptive rights of ADS holders applicable to the common shares evidenced by our ADSs in the event of capital increases for cash; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•purchases of our common shares in the TWSE by the investor directly or through the depositary and delivery of such common shares or delivery of our common shares held by such investors to the custodian for deposit into our ADS program, subject to the following conditions: (a) the depositary may accept deposit of those shares and issue the corresponding number of ADSs with regard to such deposits only if the total number of ADSs outstanding after the deposit does not exceed the number of ADSs previously approved by the Securities and Futures Bureau, plus any ADSs issued pursuant to the events described above; and (b) this deposit may only be made to the extent previously issued ADSs have been cancelled.

As a result of the limited ability to deposit common shares into our ADS program, the prevailing market price of our ADSs on the New York Stock Exchange, or NYSE, may differ from the prevailing market price of the equivalent number of our common shares on the TWSE.

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***You will be more restricted in your ability to exercise voting rights than the holders of our common shares, which may diminish your influence over our corporate affairs and may reduce the value of your ADSs.***

Holders of American depositary receipts evidencing our ADSs may exercise voting rights with respect to the common shares represented by these ADSs only in accordance with the provisions of our deposit agreement. The deposit agreement provides that, upon receipt of notice of any meeting of holders of our common shares, the depositary bank will, as soon as practicable thereafter if requested by us in writing, mail to ADS holders the notice of the meeting sent by us, voting instruction forms and a statement as to the manner in which instructions may be given by the holders.

Generally, ADS holders will not be able to exercise voting rights attached to the underlying securities on an individual basis. Under the deposit agreement, the voting rights attached to the underlying securities must be exercised as to all matters subject to a vote of stockholders collectively in the same manner, except in the case of an election of directors. The election of our directors is by means of cumulative voting. In the event the depositary does not receive voting instructions from ADS holders in accordance with the deposit agreement, our chairman or his or her designee will be entitled to vote the common shares represented by the ADSs in the manner he or she deems appropriate at his or her discretion, which may not be in your interest.

***Your right to participate in any future rights offerings may be limited, which may cause dilution to your holdings.***

We may from time to time distribute rights to our stockholders, including rights to acquire our securities. Under the deposit agreement, the depositary will not offer you those rights unless the distribution to ADS holders of both the rights and any related securities are either registered under the U.S. Securities Act of 1933, as amended, or the Securities Act, or exempt from registration under the Securities Act. We are under no obligation to file a registration statement with respect to any such rights or securities or to endeavor to cause such a registration statement to be declared effective. Moreover, we may not be able to establish an exemption from registration under the Securities Act. Accordingly, you may be unable to participate in our rights offerings and may experience dilution in your holdings.

If the depositary is unable to sell rights that are not exercised or not distributed or if the sale is not lawful or reasonably practicable, it will allow the rights to lapse, in which case you will receive no value for these rights.

***Changes in exchange controls that restrict your ability to convert proceeds received from your ownership of ADSs may have an adverse effect on the value of your investment.***

Your ability to convert proceeds received from your ownership of ADSs depends on existing and future exchange control regulations of the ROC. Under the current laws and regulations of the ROC, an ADS holder or the depositary, without obtaining further approvals from the Central Bank of the ROC (Taiwan) or any other governmental authority or agency of the ROC, may convert NT dollars into other currencies, including U.S. dollars, in respect of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the proceeds of the sale of common shares represented by ADSs or received as share dividends with respect to the common shares and deposited into the depositary receipt facility; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any cash dividends or distributions received from the common shares represented by ADSs.

In addition, the depositary may also convert into NT dollars incoming payments for purchases of common shares for deposit in the depositary receipt facility against the creation of additional ADSs. If you withdraw the common shares underlying your ADSs and become a holder of our common shares, you may convert them into NT dollars subscription payments for rights offerings. The depositary may be required to obtain foreign exchange approval from the Central Bank of the ROC (Taiwan) on a payment-by-payment basis for conversion from NT dollars into foreign currencies of the proceeds from the sale of subscription rights of new common shares. Although it is expected that the Central Bank of the ROC (Taiwan) will grant approval as a routine matter, required approvals may not be obtained in a timely manner, or at all.

Under the ROC Foreign Exchange Control Law, the Executive Yuan of the ROC may, without prior notice but subject to subsequent legislative approval rendered within ten days from such imposition, impose foreign

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exchange controls or other restrictions in the event of, among other things, a material change in domestic or international economic conditions which might threaten the stability of the domestic economy in Taiwan.

***You are required to register with the TWSE and appoint several local agents in Taiwan if you withdraw common shares from our ADS facility and become our stockholder, which may make your ownership burdensome.***

If you are a non-ROC person and wish to withdraw common shares represented by your ADSs from our ADS facility and hold those common shares, you are required under the current laws and regulations of the ROC to appoint an agent, also referred to as a tax guarantor, in the ROC for filing tax returns and making tax payments. A tax guarantor must meet certain qualifications set by the Ministry of Finance of the ROC and, upon appointment, becomes a guarantor of your ROC tax obligations. If you wish to repatriate profits derived from the sale of withdrawn common shares or cash dividends or interest on funds derived from the withdrawn common shares, you will be required to submit evidence of your appointment of a tax guarantor and the approval of the appointment by the ROC tax authorities. You may not be able to appoint and obtain approval for a tax guarantor in a timely manner.

In addition, under the current laws of the ROC, you will be required to be registered as a foreign investor with the TWSE for making investments in the ROC securities market prior to your withdrawal and holding of common shares represented by the ADSs. You will be required to appoint a local agent in Taiwan to, among other things, open a securities trading account with a local securities brokerage firm and a bank account to remit funds, exercise stockholders' rights and perform other functions as holders of ADSs may designate. You must also appoint a local bank to act as custodian for handling confirmation and settlement of trades, safekeeping of securities and cash proceeds and reporting and declaration of information. Without the relevant registration and appointment of the local agent and custodian and the opening of a securities trading account and bank account, you will not be able to hold, subsequently sell or otherwise transfer our common shares withdrawn from the ADS facilities on the TWSE.

**ITEM 4. INFORMATION ON THE COMPANY** 

**A. History and Development of the Company**

Our legal and commercial name is Chunghwa Telecom Co., Ltd. We were officially established on July 1, 1996 as part of the privatization efforts by the government of the ROC and operate under the Statute of Chunghwa Telecom Co., Ltd. Prior to our formation, we operated as a business unit of the Directorate General of Telecommunications, which was the predecessor of the NCC. The common shares of the Company have been listed on the TWSE under the trading code "2412" since October 2000 and its ADSs have been listed on the NYSE under the symbol "CHT" since July 2003. We were privatized as a result of a secondary ADS offering and concurrent domestic auction of our common shares on August 12, 2005, as the ownership by the government of the ROC was reduced to less than 50%. The privatization has enabled us to develop our business and respond to changing market conditions more rapidly and efficiently. Today, we are the largest full telecommunication service provider in Taiwan. Our principal executive offices are located at 21-3 Xinyi Road, Section 1, Taipei 10048, Taiwan, ROC, and our telephone number is (886) 2-2344-5488. Our website address is at: https://www.cht.com.tw. The information contained on our website is not incorporated herein by reference and does not constitute part of this annual report. Our agent for service of process in any suit or proceeding arising out of or relating to our shares, ADSs, American depositary receipt, or ADR, and deposit agreement in the U.S. is Cogency Global Inc., located at 122 East 42<sup>nd</sup> Street, 18<sup>th</sup> Floor, New York, NY 10168.

We are the largest telecommunications service provider in Taiwan and one of the largest in Asia in terms of revenues. As an integrated telecommunications service provider, our principal services include: mobile services, fixed-line services, ICT business, sales and other services.

We accomplished our strategic transformation in 2022 and started to operate under the new customer-centric structure to enhance our performance. In particular, our Consumer Business Group strategically focuses on individual, home-centric and family services to provide better customer experiences. Our Enterprise Business Group consolidates and integrates our enterprise business-related services to create synergy and enhance our comprehensive ICT services. Our International Business Group focuses on serving our international customers and expanding our overseas business.

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We enjoy leading positions across a number of areas in terms of both revenues and subscribers. We are Taiwan's largest service provider in fixed communications and mobile communications. As for the IPTV service, our MOD service is the largest video platform in Taiwan in terms of the number of customers. In 2025, our revenues were NT$236.1 billion (US$7.5 billion), our consolidated net income was NT$40.5 billion (US$1.3 billion) and our basic earnings per share was NT$4.99 (US$0.16).

In 2025, we made capital expenditures totaling NT$27.7 billion (US$0.9 billion). See "Item 5. Operating and Financial Review and Prospects—B. Liquidity and Capital Resources—Capital Expenditures" for a detailed discussion of our capital expenditures.

**Competitive Strengths**

We believe that our primary competitive strengths are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our position as an integrated, full-service telecommunications provider as well as ICT service provider and our premium brand and broad customer base in Taiwan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our capital resources and leading technology capabilities.

***We are an integrated full-service telecommunications provider as well as ICT service provider and have premium brand and broad customer base in Taiwan.*** 

We are the largest telecommunications service provider in Taiwan with a leading position in fixed communications services, mobile communications services, internet services, and video services. We are also a major ICT service provider in areas such as cybersecurity, cloud, AIoT, IDC and big data analysis.

*Broad range of communications products and services*. We are confident with our ability to provide an attractive and comprehensive range of both telecommunications services and ICT total solutions to our business customers. In addition, we are able to offer innovative and customized ICT services and attractive tariff packages to deliver customer-centric services.

*Broad network coverage*. In order to provide higher bandwidth services for our customers, we have been constructing our fiber to the x, or FTTx, network since 2003. We have successfully migrated many of our customers to higher-speed FTTx service. As of December 31, 2025, network coverage of FTTx with speeds of 1 Gbps and higher was approximately 94.3%. In addition, our 4G/5G mobile communications networks provide nationwide coverage. Our large mobile spectrum allocation, together with our extensive network coverage, positions us well for the continued expansion of our mobile services in Taiwan. We are also continuing to build our Wi-Fi network to offload mobile network capacity in residential and public areas with high subscriber density and usage, such as business districts, transportation hubs, airports and convenience stores. We aim to provide seamless broadband connections to better serve our customers.

*Brand awareness, distribution channels and customer service*. Our brand, "Chunghwa Telecom," has a reputation for quality, reliability and sustainability. We serve our large customer base through our extensive customer service network in Taiwan. See "—B. Business Overview—Marketing, Sales and Distribution—Sales and Distribution." Our extensive sales and distribution channels help us attract new customers and develop new business opportunities. We continuously enhance user experience across different channels. We integrate our online store and offline channels, with our big data capability, to accelerate the development of our Online-to-Offline business. To enhance customers' online experience, we provide customized online purchase processes by leveraging our capability to analyze big data, and accurately analyze customer preferences and behaviors, and target different customer groups for implementing accurate marketing initiatives to improve sales success rates and reduce marketing costs. Customers can apply for various services online through websites or apps, and make queries with us in real time. We also provide an online shopping platform, where consumers can purchase telecom tariff plans, smartphones and smart home appliances at the same time. In addition, customers can also order online and enjoy quality services at designated offline stores to save waiting time.

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In 2025, we obtained several international awards which recognized our strong operational capabilities, service quality and ESG practices. We remained the only Taiwanese telecom operator in Newsweek's "World's Most Trustworthy Companies 2025" list. We were once again included in the Dow Jones Sustainability World Index and ranked as one of the top-rated companies in the global telecom industry, and listed in the S&P Sustainability Yearbook 2025 for the for the 3rd consecutive year. We were also the only telecom company reaffirmed by S&P Global Ratings with the highest long-term issuer credit rating (AA). Furthermore, we were not only the first telecom operator in Taiwan to be upgraded to the highest MSCI ESG 'AAA' Rating, but also secured The Asset's Jade Award for Corporate Sustainability Leadership for the fifth consecutive years. In addition to winning the Glotel Award for Digital Infrastructure Innovation alongside with NTT, Chunghwa Telecom stood out as the only winner from Taiwan to secure the Silver AI Innovation Award at the World Communication Awards (WCA).

*Professional management and outstanding talents*. Our management and employees have extensive operating experience and technical knowledge for the future growth of emerging businesses. We also believe we will continue to attract and retain high-quality information technology and marketing talents.

***We have the capital resources and technology to retain our leading position.***

*Strong capital structure*. We have great financial resources in Taiwan. Our low debt-to-equity capital structure, together with our strong operating cash flows, provides us with the flexibility and resources to invest in capital-intensive and growing businesses. We started to construct our 5G base stations in the first half of 2020 and continue to enhance our existing 4G/5G mobile broadband networks, our expansion of FTTx broadband access services, IP-based MOD/Hami Video services, fixed-line/mobile value-added services, or VAS, ICT-related services and service platforms. We also deploy Narrowband-IoT and LTE Cat-M1 networks for IoT applications.

Furthermore, we signed an exclusive distribution agreement for OneWeb Low Earth Orbit, or LEO, and SES Medium Earth Orbit, or MEO, satellite services in 2023 and 2024, respectively. In 2025, we partnered with Astranis, a U.S. company, to launch Taiwan's first dedicated communication satellite, which will enhance the resilience of our communication network. Our strategy is to invest in or acquire emerging growth companies to further expand our business to retain our leading position in the future, such as cybersecurity, IDC/cloud and AIoT strategic businesses. We will continue to construct facilities of data center and cloud services and will cooperate with international public cloud service providers, including Google Cloud Platform, or GCP, Amazon Web Service, or AWS, and Microsoft Azure, to deliver hybrid cloud solutions to enterprise customers in order to be a leading IDC and multi-cloud service provider in Taiwan. In addition, we will continue to construct new submarine cables linking the U.S. and Asia-Pacific region, as well as expand the bandwidth of outbound connections and enhance network strength to attract more OTT services providers to increase their investments in Taiwan.

*Advanced network technology*. By the end of 2025, more than 94.5% of households in Taiwan can enjoy ultra-fast connectivity with our FTTH network. We will still expand FTTH network coverage of households in 2026, based on the requirement of ultra-fast connectivity service in Taiwan. In 2025, we also continued to enhance our 4G/5G mobile broadband networks. Our investment in network infrastructure places us in a position to capture a significant share of the internet and high-speed data transmission market. We have developed Multi-access Edge Computing, or MEC, technology and successfully launched it to the market, enabling us to maintain a market-leading position in the 5G private network.

*Research and development expertise*. In 2025, our research and development expenses accounted for 1.8% of our revenues. See "Item 5. Operating and Financial Review and Prospects—C. Research and Development, Patents and Licenses" for descriptions about areas of our research and development. We believe our focus on research and development will allow us to efficiently develop and deploy new technologies and services ahead of our competitors.

**Business Strategies**

We operate under three strategic pillars—Digital Resilience, Smart Empowerment, and a Sustainable Future—which guide the development of our products, services and operational priorities. These pillars are implemented in accordance with our internal guiding principle of "AI Everywhere," which reflects our focus on integrating artificial intelligence across our technology offerings and internal processes. Our business strategy

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emphasizes the provision of secure, reliable and trustworthy ICT services, supported by three principal growth areas: technology capability development, business expansion and diversification of markets and partnerships.

Our operations are grounded in core values that include Integrity, Customer Trust, Accountability and Innovation, and are supported by a management philosophy that prioritizes streamlined, pragmatic and intelligent operations. We seek to maintain operational resilience and foster long-term stakeholder confidence, while pursuing sustainable value creation for our customers, business partners, shareholders and employees.

In response to ongoing developments in artificial intelligence and digital transformation, we position ourselves as both a service enabler and collaborative solution provider for customers across various industries. Our solutions are designed to support customers' digitalization initiatives and their transition toward net-zero sustainability objectives. Through these activities, we aim to support ESG initiatives and contribute to broader efforts to enhance long-term economic resilience and sustainability.

Consistent with our strategic objectives, we have developed the following business strategies:

***Drive expansion and growth based on our core strengths*** 

We endeavor to maintain our strong market position in telecommunication business and seek to expand the scope of our business beyond network services by offering service platforms and VAS to capture new opportunities and generate revenue growth, such as IoT platforms and cloud platforms. We also continue to enhance our MOD/OTT service video platform, which offers digital contents, live broadcasting and subscription video on demand, or SVoD, services.

*Broadband services*: We strive to maintain our broadband market share and enjoy the increase of ARPU for our FTTx internet services. We believe customer demands owing to digital transformation will continue and we will grasp those opportunities from the trend. Over the years, we are continuously encouraging more migration of our FTTx subscribers to higher-speed FTTx service to further enhance our ARPU. We continue to build our FTTH infrastructure, and we believe these efforts will help us maintain our advantages in broadband services. A high-quality fixed broadband network is also essential for our high-definition MOD services.

*Video services*: We provide attractive and user-centric entertainment experience for our customers by offering 4K high-quality videos, self-selected channel mechanisms and multi-screen options on MOD and 5G service on Hami Video. We also expect to further expand our contents and applications to serve more customers by enhancing the partnerships with our key content providers. In 2025, we accelerated the growth of our video business by enhancing Hami Video's content portfolio and making strategic investments in collaboration with leading global and domestic production teams. Leveraging innovative technologies such as low-latency and multi-angle broadcasting, along with AI-driven intelligent search and personalized recommendations, we further elevated the overall viewing experience for users. Moving forward, we will continue the successful strategies to further expand our video business.

Mobile Communications: We successfully launched 5G services in Taiwan in 2020. Our strategy for mobile services includes the following initiatives:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•with a high quality 5G network, integrating digital life value-added services and innovative offerings to boost 5G penetration rate and ARPU;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•reallocating resources to drive mobile subscriptions toward premium plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•maximizing 5G subscriber numbers by encouraging 5G migration plans with incentives such as Hami Points, phone discounts and bonus data;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•leveraging big data analytics to identify and target high-potential subscribers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•offering a variety of plans to cater to different needs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•strengthening our technology capabilities to develop advanced 5G solutions and AIoT service.

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*ICT business:* Leveraging our core telecommunication infrastructure and technology capabilities to expand ICT services at home and abroad, we aim to become a leading provider of smart life and an enabler of digital economy as well as to become the most valuable and trustworthy ICT company. In order to drive the development of multiple emerging ICT services such as smart city, smart manufacturing, smart healthcare, smart transportation, and smart surveillance, we focus on high-quality platforms, building customer-centric ecosystems with key partners, and making strategic investments, mergers and acquisitions. With the strength and reliability of our technologies and services, we will gain a competitive edge to continue expanding our ICT business in the future.

***Emphasize quality of service and customer satisfaction*** 

Quality of service is critical in attracting and retaining customers and enhancing our long-term profitability. In order to continuously enhance and improve the quality of our services, we have, in addition to the quality assurance function of our regular operating units, established a number of dedicated task forces to monitor our network performance. Our senior management sets our quality evaluation criteria and regularly reviews the quality of our performance.

To ensure customer loyalty and achieve customer-centric spirit with high-quality services, we consistently focus on and invest in the optimization of the entire customer journey. In terms of network quality, we constantly strive for precise expansion and create seamless via fixed networks, mobile networks and Wi-Fi, to cater to high-speed Internet access demand. We develop new data-driven approaches to strengthen customer engagement and retention to enhance customer stickiness. Through accurate labeling and big data analytics of customer intentions, we push forward data-driven service process optimization and target customer segment marketing and caring. We also establish online and offline multiple service networks for customer service touchpoints and provide 7x24 all-around professional services and feedback channels to enhance customer experience and satisfaction.

***Improve operational and cost efficiency*** 

We continue to focus on cost control and improve our operational and cost efficiency by leveraging our IT capabilities and cloud resources. The key initiatives implemented in recent years include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•strengthening digital capabilities: leveraging AI and big data technologies to build smart and automated services, optimize customer experience and speed up processes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•optimizing business operations support system service efficiency: migrating information systems into the cloud, sharing information technology resources; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•expanding usage of information resources: building up a centralized, digitalized and specialized procurement process to enhance cost efficiency.

In particular, we primarily use and integrate Gen AI technology in our operation to optimize our cost efficiency in the following ways:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•smart customer support: we have adopted GenAI-powered Copilots. These systems not only handle inquiries but also assist human agents with real-time knowledge retrieval and automated form completion, significantly reducing handling time, enhancing accuracy, lowering agent workload, and improving overall service efficiency and customer satisfaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•network operations and maintenance: we utilize advanced AI models to predict potential optical interface degradation trends, proactively diagnoses the root causes of end-to-end network data service problems, detects potential issues and intervenes at an early stage, which together enhance our overall operational performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•software engineering: we have broadly adopted AI coding assistants (Copilots) across our development teams in generating code, writing test cases, and creating documentation, thereby notably accelerating our software development lifecycles and enhancing productivity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•smart energy management system: we have independently developed an AI-powered smart energy management system to predict air conditioning energy consumption and adjust temperature control strategies to optimize energy savings in multiple data centers.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•incorporate AI and machine learning into our operations through partnerships with mobile network equipment providers: we use AI to predict network load and automatically switch the network to deep sleep mode without affecting user experience.

By leveraging AI technologies, we have achieved significant cost savings while enhancing operational efficiency across various domains. Our long-term goal is to optimize our capital expenditure by focusing on investing in innovative products and services with attractive return profiles. We continue the construction of our fiber-based fixed-line and mobile network to increase the network bandwidth and enhance operational efficiencies by deploying advanced technologies as well as optimizing network architecture and infrastructure upgrades.

***Expand our business through alliances, acquisitions and investments***

We continuously expand our business in growth areas and proactively deploy new technologies and services through alliances, acquisitions and investments. We believe that our experience, operational scale and large customer base make us an attractive ally for other service providers.

*Alliances*. In 2024, we maintained strategic collaborations with global leading enterprises to diversify our business and enhance service capabilities. In January 2024, we entered into a two-year strategic memorandum of understanding, or MOU, with Fujitsu to jointly develop an IOWN-based All-Photonics Network (APN) in Taiwan. In August 2024, pursuant to our October 2023 MOU with NTT Corporation, we launched the world's first international IOWN APN between Taiwan and Japan, advancing the IOWN initiative. Based on the cross-border IOWN APN, we demonstrated the real-time joint performance of "Cho-Kabuki" in the two sides of Expo 2025 Osaka and Taipei in May 2025, as well as the three major exhibits at the NTT R&D Forum, namely VLM AI training verification, Smart Factory AI inference, and Virtual Production in November 2025.

We are the first telecom operator in Taiwan to participate in the Groupe Speciale Mobile Association (GSMA) Open Gateway initiative. As of December 31, 2025, we had developed nine 5G Network Open Application Programming Interfaces (APIs), covering innovative applications such as financial fraud prevention, location-based services, quality-of-service management, and 5G edge computing.

In 2025, we also partnered with Microelectronics Technology Inc. (MTI) to secure its place as one of the seven global recipients of the U.S. National Telecommunications and Information Administration (NTIA) Notice of Funding Opportunity (NOFO2) program, aiming to advance Taiwan's 5G Open RAN technologies onto the international stage.

*Acquisition and Investments*. We have focused our acquisition strategy on making strategic acquisitions of companies that we believe to be fulfilled our long-term strategic goals. We have focused our investment strategy on the development of new businesses and the enhancement of our operational efficiency, especially the aspects of AI, 5G and ICT services. Recently we have entered into the following notable transactions:

We strengthen our advantages in the public cloud business and generative AI technology through investing in iKala Global Online Corp., or iKala, in February 2024, from which we can further leverage its leading GCP cloud business, cloud SaaS services, such as MarTech, and generative AI technology.

Under the vision of "AI-Ready, Future-Ready", we established a wholly-owned subsidiary, CHT InventAI Co., Ltd. ("InventAI") in October 2025, focusing on providing AI-driven DeepFlow (intelligent analytics) and DeepVoice (customer insights) solutions to clients across a wide range of sectors, including telecommunications, financial services, manufacturing, transportation, healthcare and government.

To enhance the provision of ICT services to Taiwanese enterprises and local businesses in Malaysia, we established Chunghwa Telecom Malaysia Sdn. Bhd. ("CHTM") in June 2025 through our Singapore subsidiary, which has long-standing operational expertise and established regulatory advantages across the ASEAN region, to further advance our presence, collaboration and development in the Southeast Asian market.

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We approved the establishment of Intelligent Video Surveillance ("IVS") subsidiary led by our internal incubation team in 2025. Leveraging its proprietary AI video technologies and established operational expertise, this subsidiary aims to capture AI video opportunities, maximize cross-group synergies, and drive sustainable revenue growth.

Going forward, we will focus on driving the growth of the digital economy and foster innovation across key businesses sectors. We will continue to explore opportunities in equity investments and strategic acquisitions that enhance our core competitiveness and align with our long-term strategic goals. By cooperating with other companies and leveraging our advantages, we strive to gain market share in the AI, 5G, AIoT, cybersecurity, IDC/Cloud Computing and cultural media industry. Furthermore, we will continue to explore opportunities to strengthen our cooperation with companies in the ASEAN countries, including in telecommunication business and smart city ICT businesses.

***Maintain focus on maximizing stockholder value***

We commit to maximizing stockholder value and intend to maintain a sustainable dividend policy. Under the ROC Company Act, companies are allowed to distribute special cash dividends from capital surplus. In addition, the accumulated legal reserve that we had set aside in previous years has amounted to the aggregate par value of our outstanding share capital. Therefore, according to relevant regulations, we are not required to appropriate profits to our legal reserve starting from 2015. With the approval of our board of directors in February 2026, our payout ratio was 104.20% in 2025 earnings. See "Item 8. Financial Information—A. Consolidated Statements and Other Financial Information."

**B. Business Overview** 

**Our Principal Lines of Business** 

We have three segments that we operate and manage as strategic business units: consumer business, enterprise business and international business.

***Consumer Business***

Our consumer business strategically focuses on individual- and home-centric businesses, such as mobile, fixed broadband, Wi-Fi, IPTV (MOD) and OTT services. To create value for our customers and provide better customer experiences, we offer FTTx and ADSL services and enhance customer internet surfing experiences through our value-added services that leverage our Wi-Fi advantage as well as IPTV (MOD) and OTT (Hami Video) offerings. We have the largest mobile subscriber base in Taiwan with solid network performance. We are the largest internet service provider, or ISP, and also the largest domestic video service provider in Taiwan.

***Enterprise Business*** 

Our enterprise business focuses on creating synergy and enhancing our integrated ICT services. It also promotes the development of emerging businesses, which focus on IDC, cloud, cybersecurity, 5G+AIoT, big data, AI, enterprises' digital transformation and system integration. We have a large customer base of high-quality enterprises, including those who do both business-to-business and business-to-consumer business. Our enterprise business team identifies market insights to provide a variety of enterprise business-related services to satisfy our customers. We are the largest IDC services provider in Taiwan, with an IDC market share of more than 70%, as well as the leading cybersecurity service provider in the market.

***International Business*** 

Our international business focuses on serving our international customers. Our international customers include Taiwanese companies seeking global expansion, large Taiwanese enterprises located in foreign countries, foreign companies and multinational enterprises. As the largest submarine cable service provider in Taiwan, together with our international submarine cable stations, overseas subsidiaries, strategic partners and alliances, we are well

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positioned to help our customers to capture global market opportunities by providing our diversified product portfolio and service offerings, including fixed-line services (international voice, data, and value-added services, etc.), mobile services (roaming and global IoT services, etc.) and ICT services (IDC, cloud, cybersecurity, ICT integrated solutions services, etc.).

**Service and Product Offerings** 

As an integrated telecommunications service provider, our principal services include: mobile services, fixed-line services, ICT business, sales and other services.

***Mobile Services***

We are Taiwan's largest mobile services provider in terms of both revenues and subscribers. In 2023, we generated revenues of NT$65.0 billion, or 29.1% of our total revenues, from mobile services. In 2024, we generated revenues of NT$67.0 billion, or 29.1% of our total revenues, from mobile services. In 2025, we generated revenues of NT$69.0 billion (US$2.2 billion), or 29.2% of our total revenues, from mobile services. The growth in mobile service revenues was primarily driven by an increase in postpaid subscriber numbers and upsell resulting from a steady 5G migration in 2025, as well as growth in value-added service revenues.

We drove 5G migration and 5G penetration rate in a steady manner. In addition, as we focus on creating value for subscribers, our postpaid ARPU (excluding IoT) per month increased from NT$553 in 2024 to NT$561 in 2025, and our 5G penetration among smartphone users was 46.4% by the end of 2025.

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
| Postpaid ARPU<sup>(1)</sup> for mobile service | 547 | 553 | 561 |

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(1)Postpaid ARPU is calculated by dividing the consolidated mobile service revenues (excluding IoT and prepaid revenues) by the average number of postpaid subscribers during the month (excluding IoT).

We remain the largest mobile operator in Taiwan in terms of revenues and number of subscribers. We had approximately 11.2 million mobile subscribers, excluding IoT SIMs, and a market share of approximately 39.7% in terms of total mobile customers (excluding IoT) and approximately 40.8% in terms of total mobile services revenues in Taiwan as of December 31, 2025.

In October 2013, we obtained a 4G mobile broadband services spectrum of 10MHz paired spectrum in the 900MHz frequency band and 25MHz paired spectrum in the 1800MHz frequency band. We paid NT$39.1 billion to the government for the spectrum. The license is valid until December 31, 2030. We launched 4G mobile broadband services in May 2014.

In December 2015, we obtained an additional spectrum for 4G mobile broadband services of 30MHz paired spectrum in the 2500MHz and 2600MHz frequency bands, and we paid NT$10.0 billion to the government. The license is valid until December 31, 2033. We put these 2500MHz and 2600MHz frequency bands into use on March 24, 2016.

In November 2017, we further obtained a spectrum for 4G mobile broadband services of 5MHz paired spectrum in the 1800MHz frequency band and 20MHz paired spectrum in the 2100MHz frequency band, and we paid NT$10.9 billion to the government. The licenses are valid until December 31, 2030 and 2033, respectively.

In February 2020, we obtained a spectrum for 5G mobile broadband services of 90MHz spectrum over 3.5GHz frequency bands and 600MHz spectrum over 28GHz frequency bands, and we paid NT$48.4 billion to the government. The license is valid until December 31, 2040. We launched 5G services on June 30, 2020.

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In May 2022, we obtained 900MHz band 2x10MHz bandwidth spectrum and equipment from Asia Pacific Telecom Co. Ltd. (merged with Far EasTone Telecommunications Co., Ltd., or Far EasTone) in consideration of approximately NT$1.9 billion to enhance network performance. The license is valid until December 31, 2030.

We offer incentives, such as mobile handset subsidies and rewards points for immediate purchase, when new subscribers agree to sign a service contract with us or when existing subscribers renew their contracts with us, ranging from 12 months to 60 months.

Our tariffs for postpaid mobile subscribers primarily consist of monthly fees and usage fees. We also offer loyalty programs, which are our membership projects to offer a number of benefits and rewards, including Hami Points, special offers, and priority ticket access, to encourage subscription to our 5G mobile service.

As of December 31, 2025, we had approximately 1.3 million prepaid subscribers, representing approximately 11.0% of our total mobile subscribers, excluding IoT. Prepaid subscribers do not pay monthly fees while may opt for voice or data packages. Once the prepaid balance is fully utilized, subscribers can top up their accounts to continue using the service or elect to switch to a postpaid plan while retaining their existing telephone number.

***Fixed-line Services*** 

In 2023, we generated revenues of NT$81.9 billion, or 36.7% of our total revenues, from fixed-line services. In 2024, we generated revenues of NT$81.7 billion, or 35.5% of our total revenues, from fixed-line services. In 2025, we generated revenues of NT$81.5 billion (US$2.6 billion), or 34.5% of our total revenues, from fixed-line services. The decline in fixed-line services revenues was mainly due to the decreased voice revenues, partially offset by the increase of data communication and broadband access revenues.

Fixed-line services are one of our principal businesses. Our fixed-line services include fixed broadband services, fixed voice services, leased line services, video services and satellite services.

*Fixed broadband services:* our fixed broadband services mainly consist of broadband access, data communication services and Wi-Fi services.

We provide broadband access through connections based on our FTTx and ADSL technologies. Our revenues from our broadband access services in 2023, 2024 and 2025 were NT$19.6 billion, NT$21.2 billion and NT$22.0 billion (US$0.7 billion), respectively. Over the years, we are continuously expanding our high-speed FTTx household coverage and encouraging more migration of our FTTx subscribers to higher-speed FTTx service. The following table sets forth our ARPU for each of the periods indicated.

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
| ARPU for broadband services per month<sup>(1)</sup> | 774 | 788 | 808 |
| ARPU for FTTx services per month<sup>(2)</sup> | 836 | 846 | 864 |

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(1)ARPU for our broadband services per month is calculated as the sum of (a) broadband access revenues for the relevant period divided by the average of the number of our broadband access customers on the first and last days of the period divided by the number of months in the relevant period and (b) HiNet ISP service revenues divided by the average of the number of HiNet ISP service subscribers on the first and last days of the period divided by the number of months in the relevant period.

(2)ARPU for FTTx services per month is calculated as the sum of (a) FTTx access revenues for the relevant period divided by the average of the number of our FTTx access customers on the first and last days of the period divided by the number of months in the relevant period and (b) HiNet FTTx ISP service revenues divided by the average of the number of HiNet FTTx ISP service subscribers on the first and last days of the period divided by the number of months in the relevant period.

Our overall broadband ARPU increased in 2023, 2024 and 2025, mainly due to the demand for broadband speed upgrades, which further propelled the growth of higher-speed service adopters.

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Our data communication service includes HiNet, our brand name as an ISP, and HiLink, a VPN service for enterprises. We are the largest ISP in Taiwan, with a subscriber market share of 52.2% in Taiwan as of December 31, 2025. As of the same date, approximately 85.2% of our broadband customers were also HiNet subscribers, using HiNet as their ISP, and 92.9% of our FTTx service customers subscribed HiNet ISP service. The following table sets forth HiNet's subscribers as of each of the dates indicated.

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| | | | |
|:---|:---|:---|:---|
|  | **As of December 31** | **As of December 31** | **As of December 31** |
|  | **2023** | **2024** | **2025** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Total internet subscribers in Taiwan | 7097 | 7398 | 7582 |
| HiNet subscribers: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;HiNet FTTx subscribers | 3526 | 3591 | 3656 |
| &nbsp;&nbsp;&nbsp;&nbsp;HiNet non-FTTX subscribers | 506 | 483 | 463 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total HiNet subscribers | 4032 | 4074 | 4119 |

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We also provide Wi-Fi services. As of December 31, 2023, 2024 and 2025, we had a total of approximately 3.0 million, 2.8 million and 2.6 million residential and enterprise customers that leased our access points, respectively. We also provide home Wi-Fi devices rental services, and the number of home Wi-Fi devices increased by 16.2% year-over-year.

*Fixed voice services:* our fixed voice services mainly consist of local telephone, domestic long distance telephone and ILD telephone services.

We are the leader of the local telephone service market, with an average subscriber market share of approximately 91.4%, 91.4% and 91.4% in 2023, 2024 and 2025, respectively. Total revenues from local telephone services comprised 9.5%, 8.7% and 8.1% of our total revenues in 2023, 2024 and 2025, respectively. As for the domestic long distance telephone services in Taiwan, total revenues from domestic long distance telephone services comprised 0.7%, 0.6% and 0.5% of our total revenues in 2023, 2024 and 2025, respectively. The decreasing trend of local telephone service and long distance telephone service was mainly due to the migration to mobile services and increased use of VoIP applications.

We also provide ILD telephone services in Taiwan, and its revenues accounted for 0.8%, 0.7% and 0.5% of our revenues in 2023, 2024 and 2025, respectively, reflecting phased reduction of low-margin-contracts.

*Leased Line Services:* We are the leading domestic leased line services provider and the leading international leased line services provider in Taiwan, primarily offering exclusive lines that allow point-to-point connection for voice and data traffic.

Our local and domestic long distance leased line services revenues were NT$4.3 billion, NT$4.2 billion and NT$4.0 billion (US$0.1 billion) in 2023, 2024 and 2025, respectively. The slight decline in revenues was due to the termination of certian base station circuits lease.

Our international leased line services revenues were NT$2.7 billion, NT$2.6 billion and NT$2.7 billion (US$85.6 million) in 2023, 2024 and 2025, respectively. The slight increase in revenues in 2025 was mainly due to the completion and the launch of the new international submarine cables, SJC2, and the first phase of Apricot.

*Video Services* 

By leveraging video streaming technology via set-top boxes connected to our FTTx data networks, our MOD customers can enjoy TV channels, video-on-demand (VOD), OTT services, and other offerings. As of December 31, 2025, we provided 197 channels, including three 4K channels, along with more than 56,000 hours of on-demand video streaming. In addition to our standard packages, we also offer SVOD services for films, dramas, anime series, kids' content and variety shows. Since 2017, our MOD platform has effectively delivered OTT services such as Netflix. Our own OTT platform, Hami Video, offers Pay-Per-View, SVOD, channels, and other services to end users. As of December 31, 2025, subscriptions to our video services, including MOD (IPTV service) and Hami

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Video (OTT service), have reached approximately 3 million. We continue to see growth in our tiered pricing channel packages and digital convergence offerings.

Our MOD revenues were NT$3.7 billion, NT$3.7 billion and NT$3.6 billion (US$0.1 billion) in 2023, 2024 and 2025, respectively. The slightly decline from 2023 to 2025 was primarily due to a decrease in subscriber base. We have introduced optional service packages with customized subscriptions to better meet our customers' preferences. In light of a highly competitive market, we will continue to strengthen our customer stickiness by investing in high-quality content across our various platforms. This strategy will help us maintain our position as the largest video platform in Taiwan.

*Satellite Services* 

We entered into a contract with ST-2 Satellite Ventures Pte., Ltd. on March 12, 2010 to lease capacity on the ST-2 satellite for 15 years. As our ST-2 satellite is in good operating condition, the expected lifespan is extended for another three years and three months after evaluation in 2021. Please refer to Note 40 to our consolidated financial statements included elsewhere in this annual report for further details.

In addition, we have two satellite communication centers with geographical redundancy to ensure uninterrupted TV broadcasts, satellite VAS and backup systems in responding to major emergencies. We also provide satellite services in Southeast Asia.

In March 2023, we entered into an agreement with Singapore Telecommunications Limited to jointly invest in a new satellite project to upgrade and replace our aging ST-2 satellite. This collaboration enables us to provide all the services and capabilities of the current generation and significantly improve service quality and capabilities. Furthermore, in April 2025, we entered into an agreement with Astranis Space Technologies Corp. for a dedicated micro-geostationary orbit, or micro-GEO, capacity for Taiwan to enhance network resilience. In December 2025, we further secured the frequency allocation of fixed-satellite services for the micro-GEO services.

In November 2023, we entered into an exclusive distribution agreement with Eutelsat Group for the distribution of OneWeb LEO satellite services. In March 2025, the OneWeb satellite constellation had completed full-coverage deployment across Taiwan and the offshore islands. Subsequent to obtaining regulatory clearance, we launched commercial services in June 2025, and have secured projects from both government and enterprise clients.

In August 2024, we entered into an exclusive partnership agreement with SES, pursuant to which we provide exclusive MEO satellite services in Taiwan. Subsequent to obtaining regulatory approval, we commenced commercial operations in October 2025, which underpins our strategic development of multi-orbit satellite constellation communication services. Additionally, in December 2025, we secured regulatory approval for frequency allocation for our local gateway station, thereby enhancing the operational capacity available to our satellite communication services.

***ICT Business*** 

In 2023, we generated revenues of NT$28.6 billion, or 12.8% of our total revenues, from ICT services. In 2024, we generated revenues of NT$32.9 billion, or 14.3% of our total revenues, from ICT services. In 2025, we generated revenues of NT$35.5 billion (US$1.1 billion), or 15.0% of our total revenues, from ICT services. The growth in ICT services revenues was mainly due to the rising demand for IDC, cloud, cybersecurity, big data and integrated ICT solutions from our clients.

By integrating various technologies, such as cloud computing, cybersecurity, big data analysis, IoT, generative AI, and accelerating emerging services, we provide customized ICT total solutions to enable our enterprise customers to improve efficiency and enjoy smart life.

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We saw increasing occupancy in our highest-rated IDCs, driven by strong potential demand. In response to the growing demands for AI applications, we continue to expand our IDC business by building AIDCs to deliver AI computing power and provide GPU-as-a-Service (GPUaaS service).

We are also a cloud service provider. Our CHT cloud service is a multi-cloud network convergence service. With a high-quality global network as the basis for all cloud services, it integrates our self-developed cloud service, hicloud, and other public cloud services, including Amazon Web Services, Microsoft Azure, and Google Cloud Platform.

In addition, we cooperate with our subsidiary, CHT Security Co., Ltd., to provide HiNet Advanced Networks Defense System, or ANDs, and Web Application Firewall, or WAF. ANDs can combine with HiNet Security Fleet solution to upgrade users' information systems security.

We also provide Content Delivery Network, or CDN, service. This service effectively speeds up content delivery on websites with high traffic. The closer the CDN server is to the user geographically, the faster the content will be delivered. We provide CDN service to internet content providers to ensure stable quality when programs are broadcasted. We will expedite CDN construction to enhance digital convergence product strength.

Taking advantage of the high speed, low latency and massive connectivity of 5G technology, we also offer our enterprise customers 5G private network services. This dedicated network provides a secure and reliable connectivity solution for 5G smart applications across sectors such as government, manufacturing, and healthcare, ensuring data security while enhancing scalability and operational efficiency.

Driving a strategic expansion of AI technologies, we are broadening innovative AIoT application scenarios across transportation, security, energy, building, and healthcare sectors. Leveraging the high performance, stability, and low latency of 5G technology, we integrate these capabilities into comprehensive solutions that advance intelligence and low-carbon development, such as video surveillance, Cellular-based Vehicle Probe (CVP), traffic sign optimization, solar system management, and remote healthcare services.

Building on our expertise in big data analytics and AI technology, we build big data analysis platforms to assist our customers in AI model development and management. These AI models are used in cloud services and intelligent customer support, as well as across industries such as government, manufacturing, healthcare and finance.

***Sales***

We engage in the distribution and sales of mobile handsets and wearable devices on our mobile network to customers through our directly-owned stores, online store, and authorized exclusive service stores operated by SENAO, and also through third-party retailers. See "Marketing Strategy" and "Sales and Distribution" in "—Marketing, Sales and Distribution."

**Interconnection** 

We provide interconnection of our fixed line network and mobile network with other operators.

The following table sets forth our interconnection fee revenues and costs for the periods indicated. These revenues and costs are included, depending on the nature of the call made, in domestic fixed communications or mobile communications revenues and expenses, respectively.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **NT$** | **NT$** | **NT$** | **US$** |
|  | **(in billions)** | **(in billions)** | **(in billions)** | **(in millions)** |
| Interconnection fee revenues: |  |  |  |  |
| Fixed line | 0.5 | 0.4 | 0.3 | 9.4 |
| Mobile | 0.4 | 0.3 | 0.3 | 9.4 |
| Interconnection costs: |  |  |  |  |
| Fixed line | 0.3 | 0.3 | 0.2 | 7.0 |
| Mobile | 0.7 | 0.7 | 0.7 | 22.5 |

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The interconnection rate between fixed-line customers and other fixed-line customers is NT$0.26 per minute during peak times and NT$0.08 per minute during off-peak times. The interconnection rate for calls initiated by mobile customers to fixed-line customers has been NT$0.3241 per minute during peak times and NT$0.1575 per minute during off-peak times since January 2025. However, pursuant to the notice issued by NCC, the interconnection fees of local telephones, domestic long-distance or international calls, and mobile-to-fixed-line calls should be decreased gradually from June 5, 2023 to December 31, 2026. See "Item 5. Operating and Financial Review and Prospects—Overview—Tariff adjustments."

Our mobile interconnection revenues and costs decreased from 2023 to 2025, mainly due to (i) a year-over-year decrease of our mobile interconnection rate, as required by the tariff adjustment rules promulgated by NCC and (ii) the decreasing traffic volume attributable to VoIP substitution. Under the tariff adjustment rules, our mobile interconnection rate will decrease from NT$0.386 per minute in 2025 to NT$0.330 per minute in 2028.

Fixed interconnection revenues and costs decreased from 2023 to 2025, mainly due to the decreasing traffic volume attributable to VoIP substitution.

In addition, cost increases are subject to approval by the regulatory authorities. We expect that our interconnection contracts will generally be reviewed annually, although we may also enter into long-term contracts.

**Marketing, Sales and Distribution**

***Marketing Strategy***

In order to retain and expand our large customer base and to encourage our customers to increase their use of our services and products, we continue to focus our marketing strategy on the following areas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•services and products: we continuously develop new VAS and products based on different market segments and Hami Point loyalty program, with the aim of increasing our high-usage customers and enhancing customer loyalty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•pricing and promotions: we design flexible pricing packages that allow customers to select and design special promotional packages to encourage usage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•distribution channels: we seek to broaden our distribution reach by strengthening our cross-industry alliances and marketing relationships. Furthermore, to expand our sales channels, we also implement an external sales agent system by collaborating with SENAO, Synnex Technology and International Corporation, enabling us to extend customer services nationwide. In addition, we have established an online store for years to enhance service efficiency and to broader our reach to young people.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•branding: Chunghwa Telecom has been a well-known household brand with nationwide infrastructure and service centers. In order to fulfill our brand commitment, "Always Ahead," we have always acted in accordance with the highest corporate governance standards, and focus on meeting customer demand and satisfaction to generate additional value for shareholders.

***Sales and Distribution***

As of December 31, 2025, we had 17 operations offices for operations, 434 self-operated stores, 14 customer service call centers, and an online store for sales and customer service. In addition, we have simplified transaction process on our online store to improve user experience, and we enhanced our service efficiency by increasing digital channel access of contactless transactions.

We also had 240 SENAO exclusive service stores as of December 31, 2025. Our investment in SENAO continues to enhance our mobile handset distribution and sales capabilities in which customers can subscribe to our broadband service, MOD service and other services at SENAO retail stores. See "Item 7. Major Stockholders and Related Party Transactions—B. Related Party Transactions" for a discussion of the agreement between the parent company and SENAO about our business cooperation.

**Competition**

We face competition in virtually all aspects of our business.

***Mobile Services*** 

In December 2023, two mergers were completed. As a result, the number of mobile network operators in Taiwan decreased from five to three, including us. All of these three operators have 4G and 5G mobile broadband licenses. Additionally, nowadays mobile operators are expanding their business beyond basic mobile services to encompass other value-added services such as OTT, media, cloud, cybersecurity, and IoT solutions, with a goal to provide subscriber with a holistic digital experience to increase subscribers' stickiness.

In 2025, under this new market landscape, we continue to maintain our growth momentum and leadership in the market. In spite of the decrease in mobile subscribers (excluding IoT) in 2025, our postpaid mobile subscribers continued to increase, benefiting from our successful strategy in terms of subscriber retention and new subscribers acquisition. Our mobile service revenues also increased due to the growth in postpaid subscribers and the upsell resulting from 5G migration.

In addition to the mobile network operators, there are also mobile virtual network operators, or MVNOs, which could provide mobile services by leasing the capacity and facilities of a mobile service network from a licensed mobile service provider without a spectrum allocation. However, with the implementation of the Telecommunications Management Act in 2020, the NCC's MVNO registration is no longer mandatory.

Our strengths in the mobile services market are primarily based on our premium brand, quality of service, network reliability and attractiveness of service packages. See "Network Infrastructure—Mobile Services Network" for a discussion on our advantage of mobile broadband services spectrum.

***Fixed-line Services***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•fixed broadband services: in the fixed broadband market, we have encountered challenges from other cable operators seeking to increase their market share with lower pricing strategies. They have also offered fixed and mobile broadband bundled services through strategic alliances with other mobile operators, extending their footprint in fixed broadband.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•fixed voice services: revenues from local and domestic long distance telephone service of telecommunication services providers has continuously decreased in the past years primarily due to mobile and VoIP substitution. Challenges faced by mobile data service providers have increased

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significantly due to the popularity of smart mobile devices and mobile applications such as LINE and WeChat.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•leased line services: major competitors in this field are three fixed line operators, namely Taiwan Fixed Network Co., Ltd, New Century Infocomm Tech. Co., Ltd. and Far EasTone Telecommunications Co., Ltd. The leased line services providers primarily focus on the basis of price and the bandwidth speed of services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•video services: major competitors in this field include six cable TV MSOs, 20 independent cable TV operators as well as OTT service providers. These service providers focus on price and multimedia content.

***ICT Business***

We leverage our technology capability to provide comprehensive ICT services. In terms of IDC business, we are the leading IDC service provider in Taiwan with more than 70% market share. We offer the best IDC service quality, and our major competitors include Far EasTone, Taiwan Fixed Network and Acer Cyber Security.

Our major competitors in cybersecurity include Acer Cyber Security Inc. and ISSDU Inc. in terms of cybersecurity professional services and TAIWAN-CA Inc. in terms of identification business.

Our major competitors in cloud services are cloud services resellers and system integration service providers, including eCloudvalley Digital Technology Co. Ltd, CKmates International Co. Ltd, CloudMile Inc., Nextlink Technology Inc., Acer E-Enabling Service Business Inc. and SYSTEX Corporation.

Our major competitors in AIoT application services are telcos and system integration service providers, including telecom operators such as Far EasTone and Taiwan Mobile, as well as system integration service providers and emerging startups in sectors such as energy management and image recognition.

**Network Infrastructure**

Our network infrastructure consists of transmission networks that convey voice and data traffic, switching networks that route traffic between networks, and mobile, internet, leased line and data switching networks.

We purchase most of our network equipment from well-known international suppliers. As part of the purchase contract, these suppliers deliver and install the equipment for us. We also purchase from local suppliers a variety of components such as transmission lines, switches, telephone sets, MOD set-top boxes and radio transmitters.

Approximately 12,027 of our employees were engaged in network infrastructure development, maintenance, operations and planning as of December 31, 2025.

***Transmission Networks***

As of December 31, 2025, our transmission networks consisted of approximately 2.97 million fiber kilometers of fiber optic cable for trunking and approximately 13.68 million fiber kilometers of fiber optic cable for local loop.

Due to the emergence of Packet Transport Network, or PTN, technology, a cost-effective method for transmitting data services, we began the deployment of PTN in 2013. Due to the high utilization of our existing Re-configurable Optical Add-Drop Multiplexer, or ROADM, network, we began to introduce Optical Transport Network, or OTN, to meet the demand of 100 Gbps per wavelength services in 2014. After completing a trial of per-wavelength transmission rates of 200 Gbps, we began to introduce the technology of 200 Gbps per wavelength in our OTN network in 2018 and 400 Gbps per wavelength in 2024. We had deployed 1,284 wavelength for 100 Gbps, 389 wavelength for 200 Gbps and 15 wavelength for 400 Gbps in the OTN network and 21,898 GbE in the PTN network by the end of 2025.

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As part of our strategic focus on the internet and data markets, our local loop connections mainly adopt FTTx technology. This enables us to provide broadband services, such as MOD, high-speed internet access and VPN. As of December 31, 2025, we have constructed approximately 12.7 million FTTx ports. Our FTTx service can offer high-speed broadband access rates up to 2 Gbps. For low bandwidth demand, we use ADSL technology to provide the internet connection services to our customers.

***Switching Networks*** 

**Domestic telecommunications network.** Our domestic public switched telephone network currently consists of 19 message areas connected by a long distance network. As of December 31, 2025, we had 38 long distance exchanges, which were interconnection points between our telecommunications network and approximately 9.1 million telephone lines, which reached virtually all homes and businesses in Taiwan.

We currently have intelligent networks installed over our public switched telephone networks for our domestic long distance and international networks, as well as a local intelligent network mainly in the Taipei, Taichung and Kaohsiung metropolitan areas. Our intelligent network is designed to facilitate the use of VAS by providing more information about calls and allowing greater management of those calls.

As of December 31, 2025, our Next Generation Network, or NGN, core network capacity consisted of approximately 8,600,000 local telephone subscribers, comprising approximately 8,230,000 Session Initiation Protocol-based, or SIP-based, and approximately 370,000 Access Gateway-based, or AG-based, subscribers.

Our NGN Managed IP backbone network consists of an inner core network and an outer core network. By the end of 2025, we owned 12 sets of switch routers for the inner core network and 32 sets of switch routers for the outer core network, and the bandwidth of the network was approximately 3,720 Gbps. We believe this network will enable us to meet the increasing demand for NGN services, such as VoIP, and all managed services, including MOD and VPN.

**International network.** Our international infrastructure consists of multiple submarine cables, transmission networks, voice GWs and IP networks, which provide IPLC, IPVPN, Voice and Internet transit service to connect Taiwan and worldwide.

In 2018, we started to build SJC2 with several Asian telecom companies. The cable features up to seven pairs of high-capacity optical fiber with a total capacity of 126 Terabits per second. Its high capacity allows it to support high bandwidth intensive requirements, such as IoT, robotics, analytics and AR or VR applications. SJC2 was completed in July 2025, initially built with a 17.1Tbps bandwidth, with future expansions planned according to business needs. In 2021, we joined another consortium cable project called APRICOT to further lay a solid cornerstone for Chunghwa Telecom's international business plan in the Asia-Pacific region. The northern segment of APRICOT was completed and activated in September 2025, providing an initial capacity of 7.4 Tbps to connect Taiwan with Japan. As of December 31, 2025, we had invested in 30 submarine cables, 14 of which landed in Taiwan. The total invested capacity has reached 60.34 Tbps.

***Mobile Services Network***

Our mobile services network consists of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•cell sites, which are physical locations equipped with a base station consisting of transmitters, receivers and other equipment used to communicate through radio channels with customers' mobile handsets within the range of a cell;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Centralized Radio Access Network, or C-RAN, which splits base stations into two parts, the Radio Remote Unit, or RRU, and the Base Band Unit, or BBU. The RRUs stay at the cell site, while the BBUs are aggregated into a centralized office;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Radio Network Controller, or RNC, for 3G, which connects to, and control, the base station within each cell site;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Mobile Switching Server, or MSS, for 3G, which control the base station controllers and the processing and routing of telephone calls;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Serving GPRS Support Nodes, or SGSN, which connects the GPRS network to the base station controllers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Mobility Management Entity, or MME, which connects the base station to our 4G/5G core network that is responsible for control side;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Serving Gateway, or S GW, which connects the base stations to our 4G/5G core network that is responsible for data side;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Packet Data Network Gateway, or PDN GW, which connects our 4G/5G core network to the internet; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•transmission lines, which link to the mobile switching service centers, MME, S GW, base station controllers, base stations and the public switched telephone network in connection with the 3G/4G/5G network, and the base station controllers, the support nodes, PDN GW and the internet in connection with the GPRS/4G/5G core network.

In May 2014, we launched our 4G mobile broadband services with 10MHz paired spectrum in the 900MHz frequency band and 25MHz paired spectrum in the 1800MHz frequency band. In December 2015, we obtained an additional spectrum for 4G mobile broadband services of 30MHz paired spectrum in the 2500MHz and 2600MHz frequency bands. In November 2017, we further obtained a spectrum for 4G mobile broadband services of 5MHz paired spectrum in the 1800MHz frequency band and 20MHz paired spectrum in the 2100MHz frequency band.

In February 2020, we acquired 5G spectrums allocated 90MHz bandwidth in the 3.5GHz frequency band and 600MHz bandwidth in the 28GHz frequency band. In June 2020, we launched 5G mobile broadband services. We use C-RAN architecture to enhance 5G RAN performance and reduce network maintenance costs. In May 2022, we acquired 10MHz paired spectrum in the 900MHz frequency band from Asia Pacific Telecom Co., Ltd. We currently own 40MHz spectrum in the 900MHz frequency band, 60MHz spectrum in the 1800MHz frequency band, 40MHz spectrum in the 2100MHz frequency band, 60MHz spectrum in the 2600MHz frequency band, 90MHz spectrum in the 3500MHz frequency band, and 600MHz spectrum in the 28GHz frequency band, which may provide higher data transmission rates.

We have also installed an intelligent network on our existing mobile services network infrastructure, which enables us to provide additional functions, such as prepaid and VPN services as well as a wide range of VAS.

***Internet Network***

HiNet, our internet service provider, has the largest internet access network in Taiwan, with 23 points of presence, approximately 3.68 million broadband subscribers and a backbone bandwidth of approximately 29,570 Gbps as of December 31, 2025. We aim to increase HiNet's points of presence and backbone bandwidth to approximately 31,570 Gbps by the end of 2026.

HiNet's broadband backbone network consists of an inner core network and an outer core network. We had a high-speed internet protocol backbone network by the end of 2025 with 14 sets of switch routers for the inner core network and 36 sets of switch routers for the outer core network. We also built CDN to meet the needs of Internet/OTT services. Our CDN consists of 20 domestic and 3 overseas point-of-presences and the total capacity is approximately 4,460 Gbps as of December 31, 2025. We believe these networks will enable us to meet the increasing demand for our internet services.

HiNet's total international connection bandwidth is 5,890 Gbps as of December 31, 2025. As we expect that internet traffic flows to and from the U.S. will continue to increase, we have been continuously expanding our bandwidth to the U.S. We also endeavor to increase our links to other countries, including Japan, Korea, Hong Kong, Singapore, Mainland China, Malaysia, the United Kingdom, Germany and the Netherlands.

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***Leased Line and Data Switching Networks***

We operate leased line networks on both a managed and unmanaged basis. In addition, we operate a number of switched digital networks used principally for the provision of packet-switched, frame relay, asynchronous transfer mode technology and a multi-protocol label switching internet protocol VPN. As of December 31, 2025, we had 68 frame relay ports and approximately 159,614 multi-protocol label switching internet protocol VPN virtual ports.

Our data networks support a variety of transmission technologies, including frame relay, asynchronous transfer mode and Ethernet technology. We have also built up our HiLink VPN that combines internet protocol and asynchronous transfer mode technologies. The advantage of HiLink VPN based on multi-protocol label switching technology is that it can carry different classes of services, such as video, voice and data, together to provide services with various qualities of service, high-performance transmission and fast-forward solution in an enhanced security network. HiLink VPN can be accessed by xDSL/FTTx/NG-SDH/PTN and can include built-in mechanisms that can deal with overlapping internet protocol addresses. Therefore, the network is potentially less costly and requires less management for business applications.

**Property, Plant and Equipment**

Our property, plant and equipment consist mainly of telecommunications equipment, land and buildings located throughout Taiwan. Although we have a significant amount of land and buildings throughout Taiwan, most of our properties are for operational use and only a small part of them are for investment purposes, which were classified as "investment properties" in our consolidated financial statements included in this annual report. Notes 17 and 19 to our consolidated financial statements, included elsewhere in this annual report, provide additional details as to our "Property, plant and equipment" and "Investment properties," respectively. See "Item 3. Key Information—D. Risk Factors— Risks Relating to Our Company and the Taiwan Telecommunications Industry—Our ability to deliver services may be disrupted due to systems failures, network shutdowns, earthquakes or other natural disasters" for a discussion of environmental issues that may affect utilization of our assets.

We continue to revitalize our own assets through rental income focused strategies and explore development opportunities to increase the value of our land and buildings. We received approximately NT$0.9 billion (US$28.21 million) in rental income from properties in 2025.

**Insurance**

We do not carry comprehensive insurance for our properties or any insurance for business disruptions. We do, however, maintain in-transit insurance for key materials, such as cables, equipment and equipment components.

**Employees**

Please refer to "Item 6. Directors, Senior Management and Employees—D. Employees" for a discussion of our employees.

**Our Pension Plans**

Currently, we offer two types of employee retirement plans—our defined contributions plan and defined benefits plan—which are administered in accordance with the Republic of China Labor Standards Act and the Republic of China Labor Pension Act.

**Legal Proceedings**

From time to time, we are involved in various legal and arbitration proceedings of a nature considered to be in the ordinary course of our business. It is our policy to provide for reserves related to these legal matters when it is probable that a liability has been incurred and the amount is reasonably estimable. From time to time, we have also been assessed fines by various government agencies, such as the NCC and FTC, but none of these fines has had a significant effect on our financial condition or results of operations.

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We believe that we had not been involved in any legal or arbitration proceedings during 2023, 2024 and 2025 that would have a significant effect on our financial condition or results of operations; however, we cannot give you any assurance with respect to the ultimate outcome of any asserted claims against us or legal or arbitration proceedings involving us.

**Capital Expenditures**

See "Item 5. Operating and Financial Review and Prospects—B. Liquidity and Capital Resources—Capital Expenditures" for a discussion of our capital expenditures.

**Enforceability of Judgments in Taiwan** 

We are a company limited by shares and incorporated under the ROC Company Act. All of our directors, executive officers and some of the experts named in this annual report are residents of Taiwan and a substantial portion of our assets and the assets of those persons are located in Taiwan. As a result, it may not be possible for investors to effect service of process upon us or those persons outside of Taiwan, or to enforce against them judgments obtained in courts outside of Taiwan. We have been advised by our ROC counsel that in their opinion any final judgment obtained against us in any court other than the courts of the ROC in connection with any legal suit or proceeding arising out of or relating to the ADSs will be enforced by the courts of the ROC without further review of the merits only if the court of the ROC in which enforcement is sought is satisfied that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the court rendering the judgment has jurisdiction over the subject matter according to the laws of the ROC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the judgment and the court procedure resulting in the judgment are not contrary to the public order or good morals of the ROC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the judgment is a final judgment for which the period of appeal has expired or from which no appeal can be taken;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•if the judgment was rendered by default by the court rendering the judgment, we, or the above-mentioned persons, were duly served within a reasonable period of time in accordance with the laws and regulations of the jurisdiction of the court or process was served on us with judicial assistance of the ROC; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•judgments at the courts of the ROC are recognized and enforceable in the court rendering the judgment on a reciprocal basis.

A party seeking to enforce a foreign judgment in the ROC would, except under limited circumstances, be required to obtain foreign exchange approval from the Central Bank of the Republic of China (Taiwan) for the remittance out of the ROC of any amounts exceeding US$100,000 or its equivalent recovered in respect of such judgment denominated in a currency other than NT dollars.

**Regulation** 

***Regulatory Authorities*** 

Prior to March 1, 2006, we were under the supervision of the MOTC and the Directorate General of Telecommunications. On March 1, 2006, the NCC was formed in accordance with the National Communications Commission Organization Act, which was intended to transfer regulatory authority over the Taiwan telecommunications industry from the MOTC and the Directorate General of Telecommunications to the NCC.

Under the National Communications Commission Organization Act, the NCC was comprised of seven commissioners, which are full-time positions. The premier of the Executive Yuan shall nominate the commissioners and appoint one of them to serve as chairperson, and one as vice chairperson. The nomination shall be approved and appointed by the Legislative Yuan. The tenure of the commissioners is four years, and the commissioners may be re-appointed to serve a consecutive term once.

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On August 27, 2022, the Ministry of Digital Affairs was launched to partly take over the administrative authorities formerly held by the NCC, the MOTC and the Executive Yuan, and the Organizational Act of the Ministry of Digital Affairs was enforced on the same day.

***Telecommunications Management Act***

The TMA was passed by the Legislative Yuan on May 31, 2019 and promulgated by the President on June 26, 2019. The Executive Yuan issued an ordinance on June 29, 2020 to set the effective date of the TMA (excluding certain articles regarding frequency allocation) on July 1, 2020, and issued an ordinance on October 22, 2020 to set the effective date of the remaining articles of the TMA regarding frequency allocation on November 1, 2020. According to the TMA, within three years upon the enforcement thereof, the existing telecommunications enterprises shall register themselves with the NCC for the transition into being governed by the TMA. We filed an application for the aforementioned transition registration on July 31, 2020, and the application was approved by the NCC on September 30, 2020.

The impacts caused by the enforcement of the TMA on us and the telecommunications industry include: (i) reducing the entry barrier to the telecommunications markets by replacing the original concession/approval system with a registration system; (ii) loosening unnecessary restrictions while imposing stricter obligations on enterprises with significance in the specific telecommunications service markets; (iii) regulating the use of private lands and buildings for network infrastructure; and (iv) introducing flexible spectrum mechanisms such as domestic roaming, frequency transferring, leasing, lending, and sharing.

***Reducing the entry barrier to the telecommunications market:***

Telecommunications service providers shall register as a telecommunications enterprise with the competent authority for activities including negotiating interconnection, applying for frequency assignments (excluding Article 56 exceptions), assigning Public Switched Telecommunications Network (PSTN) codes, subscriber numbers, leasing/purchasing services with assigned numbers, or providing end-user Internet access. Failure to register results in being ineligible for rights under the TMA.

***Specifying the obligations of telecommunications enterprises:***

The TMA categorizes the obligations of telecommunications enterprises into three levels: general obligations, special obligations and designated obligations:

**(1)** **General Obligations:** 

The obligations borne by all the telecommunications enterprises that have filed the registration with the NCC including disclosure of service conditions, accounting separation, communication confidentiality, consumer complaint handling, record-keeping, service suspension notification, universal service cost sharing for enterprises meeting the revenue threshold, and interconnection support.

**(2)** **Special Obligations:** 

The obligations borne by the telecommunications enterprises that are granted specific resources or determined by the NCC including emergency communications, security maintenance plans, standard service contracts, quality self-evaluations, and co-establishment of consumer dispute mechanisms.

**(3)** **Designated Obligations:**

In order to fulfill the need of policy or competent laws and regulations, relevant competent authorities may designate the telecommunications enterprises which meet certain conditions to take relevant necessary measures, including disaster prevention and assistance, communication security and surveillance, protection of the rights and interests of the people with disabilities and the telecommunications universal services.

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***To meet the need of the rapid-changing market and ensure effective competition in the telecommunications service market, the enterprises under control are changed from dominant market players to the enterprises with significance in the specific telecommunications service market, which are subject to different levels of corrective actions according to the Telecommunications Management Act.*** 

The NCC is entitled to adopt control measures for those with market significance in the specific telecommunications service market if necessary, and such measures may be applied to us if we are regarded as having market significance.

***The opportunity of accessing to and using information may be different due to gender, race, class, geographic area of residence or other factors, which is called the digital divide.***

The Telecommunications Management Act tries to resolve the problem caused by the digital divide from the following aspects by opening the market, introducing competition and new technology and continuing the promotion of telecommunications universal service.

***The Telecommunications Management Act removes the restriction on telecommunications network construction imposed by the Telecommunications Act and allows enterprises to establish the telecommunications networks that meet their business needs and develop new technology and equipment.*** 

To ensure network and information security, PSTN and telecommunications networks and services provided over the internet are subject to a unified cybersecurity standard and related protection obligations.

***The Telecommunications Management Act changes the method of frequency allocation specified in the Telecommunications Act, allowing the competent authority to allocate frequency by auction, open tender or other appropriate methods according to the characteristic and purpose of use of the frequency.*** 

As a result, the efficiency of the use of frequency can be improved, the development of radio technology can be ensured, and the development of new technology and services of communications can be encouraged.

***Fair Trade Act*** 

According to the TMA, to ensure effective competition in the telecommunications service market, the competent authority is entitled to adopt control measures for those with market significance in the specific telecommunications service market if necessary, including ordering those enterprises to disclose necessary information, conditions, procedures and expenses in terms of interconnection, network access components or use of telecommunications infrastructure; prohibiting those enterprises from making discrimination, setting the service fee that may cause a cross-subsidy, price squeeze or any other abuse of power and hence impede fair competition (including doing so for the subsidiaries, affiliates or partners thereof); requesting those enterprises to provide interconnection, network access components or relevant telecommunications infrastructure; ordering those enterprises to draw up and publish a template agreement related to the provision of interconnection or network access.

By comparison to the TMA, the Fair Trade Act, or the FTA, plays a more comprehensive role in regulating all matters relating to competition between enterprises. The FTA seeks to deter and prevent anti-competitive conduct by granting the powers of the FTC to investigate and to impose penalties.

The FTA is administered and enforced by the FTC, which has independent administration rights granted to it under the FTA and is empowered to impose disciplinary actions for fair trade matters. The FTC may initiate an investigation either on its own account in accordance with its discretion granted by the FTA or upon receipt of a complaint.

***Regulation on Telecommunications Enterprise with Monopoly Status***

The term "monopoly" used in the FTA refers to the circumstance where an enterprise conducts its business operation in a relevant market without facing any competition or where an enterprise is able to dominate the relevant market and block competition in the market. If there are two or more enterprises within the same market that do not

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engage in any price competition with each other, the whole group of non-competing enterprises should be deemed as a single monopoly enterprise in the market.

The FTC has the ultimate discretion to consider an enterprise as a monopolistic enterprise upon any other events evidencing such enterprise's capability to affect the supply and demand in relevant markets or eliminate competition.

Under the FTA, any enterprise with monopoly status is prohibited from engaging in any of the following activities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•directly or indirectly, by using any unfair method to prevent any other enterprises from competing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•improperly set, maintain or change the price for goods or the remuneration for services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•forcing the enterprise's trading counterpart to give preferential treatment without justification; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•abusing its market power.

If the FTC finds an enterprise liable for violation of regulations governing monopoly, the FTC could impose a monetary fine of not more than NT$100,000,000 each time and order such enterprise to cease such wrongdoing, rectify the conduct or take any necessary corrective action. If the FTC finds such violation serious, it may further impose a monetary fine exceeding NT$100,000,000 but up to 10% of the total sales of the enterprise in the preceding fiscal year. Furthermore, the responsible person of such enterprise who engaged in such wrongdoing may be sentenced to imprisonment of not more than three years if the enterprise fails to follow FTC's order to cease the wrongdoing, rectify the conduct or take any necessary corrective action.

***Regulations on Concerted Action (Cartel) in Telecommunication Industry***

The term "concerted action (cartel)," as used in the FTA, means the competing enterprises at the same production and/or marketing stage, by means of contract, agreement or any other form of mutual understanding, jointly determine the price of goods or services, quantity, technology, products, facilities, trading counterparts, or trading territory with respect to such goods and services, or any other behavior that restrict each other's business activities, resulting in an impact on the market function with respect to production, trade in goods, or supply and demand of services. The FTC may assume a concerted action exists based on the market condition, the feature of goods or services, cost and profit, and the economic feasibility for enterprises to conduct concerted action.

Under the FTA, enterprises are prohibited from engaging in any concerted actions unless the FTC holds the concerted action may be beneficial to the overall economy and public interest.

If the FTC finds an enterprise liable for violation of regulations governing concerted action (cartel), the FTC could impose a monetary fine of not more than NT$100,000,000 each time and order such enterprise to cease such wrongdoing, rectify the conduct or take any necessary corrective action. If the FTC finds such violation is serious, it may further impose a monetary fine exceeding NT$100,000,000 but up to 10% of the total sales of the enterprise in the preceding fiscal year. Furthermore, the responsible person of such enterprise who engaged in such wrongdoing may be sentenced to imprisonment of not more than three years if the enterprise fails to follow FTC's order to cease the wrongdoing, rectify the conduct or take any necessary corrective action.

***Regulations on Restrict Competition in Telecommunication Industry***

The FTA prohibits any enterprise from conducting any of the following activities that may restrict competition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•forcing another enterprise to discontinue supply, purchase or other business transactions with a particular enterprise for the purpose of injuring such particular enterprise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•treating another enterprise discriminatively without justification;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•preventing competitors from participating or engaging in competition by inducing customers with low price or other illegal inducements;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•forcing another enterprise to refrain from competing in price, or to take part in a merger, or a concerted action, or to perform vertical restrictions by coercion, inducement with interest, or other improper methods; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•setting improper restrictions on its trading counterparts' business activity as the condition to reach business engagement.

If any enterprise violates the regulations governing unfair competition, the FTC may order it to cease therefrom, rectify its conduct or take necessary corrective action within the time prescribed in the order; in addition, the FTC may assess upon such enterprise an administrative fine of not less than NT$100,000 nor more than NT$50,000,000. Should such enterprise fail to cease therefrom, rectify the conduct or take any necessary corrective action after the lapse of the prescribed period, the FTC may continue to order such enterprise to cease therefrom, rectify the conduct or take any necessary corrective action within the time prescribed in the order, and each time may successively assess thereupon an administrative fine of not less than NT$200,000 nor more than NT$100,000,000 until its ceasing therefrom, rectifying its conduct or taking the necessary corrective action.

***Regulations on the Representations or Symbols Used by Telecommunications Enterprises on Goods or in Advertisement***

The FTA prohibits any enterprise from making or using false or misleading representations or symbols as to price, quantity, quality, content, production process, production date, valid period, method of use, purpose of use, place of origin, manufacturer, place of manufacturing, processor, place of processing on goods, or any items which attract customers or in advertisements, or in any other way making known to the public.

If an enterprise violates the applicable provisions under the FTA that prohibit false or misleading representations, the FTC may order it to cease therefrom, rectify its conduct or take necessary corrective action within the time prescribed in the order; in addition, the FTC may assess upon such enterprise an administrative fine of not less than NT$50,000 nor more than NT$25,000,000. Should such enterprise fail to cease therefrom, rectify the conduct or take any necessary corrective action after the lapse of the prescribed period, the FTC may continue to order such enterprise to cease therefrom, rectify the conduct or take any necessary corrective action within the time prescribed in the order, and each time may successively assess thereupon an administrative fine of not less than NT$100,000 nor more than NT$50,000,000 until its ceasing therefrom, rectifying its conduct or taking the necessary corrective action.

***Personal Data Protection Act***

Under the Personal Data Protection Act, or PDPA, every individual or governmental or non-governmental agencies, including us, should be subject to certain requirements and restrictions for collecting, processing or using personal data. The definition of "personal data" is extended to cover a broad scope, including the name, date of birth, ID number, special features, fingerprints, marital status, family, education, occupation, medical records, medical history, genetic information, sex life, health examination report, criminal records, contact information, financial status, social activities, and any other data which is sufficient to directly or indirectly identify a specific person. If we fail to comply with the PDPA, we may be subject to serious punishment for civil claims, criminal offenses and administrative liabilities: the ceiling of the aggregate compensation amount for damages payable in a single case will be up to NT$200 million or the actual value of loss arising from our violation provided the amount of actual value of such loss is higher than NT$200 million; the defendant may be subject to imprisonment of up to five years; and the penalty for administrative liabilities will be up to NT$500,000 for each violation, and may be imposed consecutively if such violation continues.

In May 2023, the PDPA was amended for the establishment of the "Personal Data Protection Commission" as the independent competent authority of the PDPA. For the preparation of the Personal Data Protection Commission, the Executive Yuan established the "Preparatory Office of Personal Data Protection Commission" on December 5, 2023. The power for supervision and enforcement of PDPA will be transferred to the Preparatory Office of Personal Data Protection Commission since January 1, 2024. The Preparatory Office of Personal Data Protection Commission will be dissolved when the Personal Data Protection Commission is formally established. As of December 31, 2025, the Personal Data Protection Commission was not formally established.

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**Corporate Responsibilities: Environmental, Social and Governance (ESG) Initiatives**

We are dedicated to sustainable environmental, social, and governance practices. To oversee our sustainability efforts and meet stakeholders' expectations, we established the Sustainable Development and Strategy Committee, a board-level functional committee, in 2023. This committee guides the company in setting sustainable development vision, long-term strategies, and medium- to long-term goals in line with global trends. We also formed the Sustainable Development Promotion Committee, led by the management, which includes four working groups: Environmental Group, Social Group 1, Social Group 2, and Governance Group. Both of the committee and its groups have regular meetings to develop and implement ESG plans and initiatives in alignment with the vision and mission set by the Sustainable Development and Strategy Committee. To advance our corporate sustainability blueprint and underscore our firm commitment to ESG, our President assumes the role of Chief Sustainability Officer, spearheading the implementation of all sustainability initiatives in 2025.

***Environmental Sustainability***

While the telecommunications service is a low-pollution industry, as a member of the global community and a telecommunications industry leader in Taiwan, we have come to recognize that energy and resources, wastes, maintenance, and procurement in the operation will lead to certain level of impacts on the environment. To deal with environmental issues and mitigate the influence of climate change, we monitor and seek to incorporate environmental sustainability practices and principles in our operations, products and supply chain.

We are committed to achieving net-zero greenhouse gas (GHG) emissions by 2045. Moreover, we joined the EV100 initiative and have to committed to achieving 100% electrification of our directly controlled car fleet by 2030. Furthermore, after officially joining RE100 in May 2023, we committed to using 100% renewable energy for our IDCs by 2030 and for the entire company by 2040. Our environmental sustainability initiatives mainly include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•climate change adaptation strategies: we established the Environmental (E) group, supervised by the Executive Vice President of Technology, to oversee the company's climate change mitigation and adaptation issues. We focus on environmental sustainability issues and regulatory progress domestically and globally, and actively align ourselves with international management systems and environmental sustainability initiatives. We continuously enhance our climate resilience of telecommunications infrastructure and communication equipment to ensure business continuity, such as planning the emergency backup capacity and adopting dual power supply to achieve uninterrupted operation for critical IDCs. Moreover, we encourage and motivate partners in the upstream and downstream to jointly attain the 1.5°C goal laid out in the Paris Agreement. We are the first telecommunications service provider in Taiwan to join the CDP Supply Chain Program and encourage supplier partners to disclose complete GHG information and plan for carbon reduction actions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•carbon emission investigation: we had completed a group-wide Scope 1 to Scope 3 greenhouse gas (GHG) investigations for the year of 2025, which is currently under review. Over the past few years, we have successfully obtained ISO 14064-1:2018 verification for the respective GHG investigations, ISO-14067 and carbon footprint labels issued by the Ministry of Environment for our specified categories of services and products. Based on 2025 data, our total greenhouse gas emissions for Scope 1, Scope 2 and Scope 3 (Categories 1–6) amounted to 2,468,907.9383 t-CO2e. In addition, we purchased carbon credits in December 2023 and September 2025, and these carbon credits have been utilized to achieve carbon neutrality at our Telecommunication Training Institute in 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•carbon emission reduction: Both of our near-term and long-term targets to reduce GHG emissions had been validated by the Science Based Targets initiative, or SBTi. In addition, we have taken a series of actions, such as replacing old equipment and infrastructure, using C-RAN architecture and introducing energy management on a larger scale in operation and maintenance management, to achieve carbon reduction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•internal carbon pricing: we have adopted internal carbon pricing, or ICP, in our company since 2023 with a price of NT$1,600 per tonne of CO2e by considering factors, such as investments in carbon reduction projects, future renewable energy demand, potential implementation of carbon fees in Taiwan and international peers comparison. Our Internal Carbon Pricing ("ICP") mechanism incorporates the cost of carbon emissions into the performance evaluation framework of our business units. The internal

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carbon fees collected will be used as a fund to implement our innovative projects and support our carbon reduction initiatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•renewable energy: in May 2023, we officially joined RE100, committing to achieve 100% renewable energy usage across all operations by 2040. From 2023 to 2025, we had accumulatively procured approximately 235 million kWh. In 2025, our renewable energy procurement and self-generated power totaled 88.679 million kWh, with an investment of several hundred million NTD in renewable energy procurement during the year. In December 2025, we entered into a 20-year power purchase agreement with GREENET CO., LTD. to secure over 4.6 billion kWh of renewable energy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•sustainable procurement: we adhered to the ISO 20400 Sustainable Procurement Guidelines to incorporate our sustainability principles into procurement practices and have obtained the top-tier Level 5 "Role Model" recognition in 2025. By introducing the "Sustainable Supply Chain Initiative" and establishing the "Supplier Sustainability Grading System," we leveraged our influence in procurement to encourage suppliers to prioritize sustainability issues, including environmental protection, labor rights, and occupational health and safety.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•IOWN initiatives: as a member and board director of IOWN, we are working with global companies to explore multi-domain cutting-edge technologies to achieve better energy efficiency and reduce carbon emissions such as end-to-end all photonic networks and innovative applications. Partnering with Japanese telecom operator, NTT, we have successfully carried out joint telematics performance demonstrations in Japan and Taiwan in 2025, and won the Digital Infrastructure Innovation award at the 2025 Glotel Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•biodiversity: we commit to maintaining and fostering biodiversity, avoiding all kinds of deforestation activities and promoting reforestation throughout our operations. In 2025, as we continued advancing our sustainability efforts and published our 2024 TNFD report, we focused on strengthened stakeholder engagement and leveraged AIoT technologies to promote biodiversity conservation through the Hundred Species Restoration Project and the Black-faced Spoonbill Conservation Project, moving toward a Net Positive Impact on biodiversity and No Net Deforestation by 2030.

***Social Responsibility*** 

We have committed to leveraging our technologies and capabilities to practice digital empowerments and providing a safe and healthy work environment to our employees and further contributing to our society. It mainly includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•employee compensation: we regularly review the salary structure and comprehensively consider factors such as (i) inflation, price indices, and industry salary benchmarks and (ii) our operational condition, financial performance, and employment costs to establish a reasonable and competitive remuneration mechanism. Additionally, we offer incentives and bonus for all employees, which demonstrates our commitment to recognizing employees' hard work and contributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•employee happiness: we care for our employees and constantly provide a better working environment to our employees. Our employees who have children aged six or under can enjoy a childcare allowance and can apply for one hour of paid leave per working day. We also offer our employees who take nursing care leave 50% of their labor insurance salary as a subsidy for 18 months after six months government subsidy. Besides, we continue to establish childcare centers for our employees' children to balance work and family. In addition, we implement an employee stock ownership plan through a trust. When our employees deposit a certain amount of their salary to us, we will offer 30% of the deposit amount as their subsidies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•workplace flexibility: to enhance work flexibility and support talent retention, we introduced "shared offices" across Taiwan and established the R&D related centers in Kaohsiung, and offered employees who wish to return to, or be closer to, their hometowns the option of working in these locations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•equality in our workplace: we commit to creating a workplace with equality and non-discrimination. We launched a series of activities to advocate gender equality and dedicated to promoting the growth of female employees in the workforce. In addition, we have well-established and unimpeded grievance

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mechanisms for internal employees or external personnel to submit complaint for any discrimination or harassment issues encountered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•occupational safety and health: we commit to complying with laws and other regulations of the health and safety, and encourage our employees to take necessary precautions and immediately report accidents, injuries and unsafe practices or conditions. In addition, we are the first telecommunications service provider in Taiwan to achieve compliance with ISO 45001:2018.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•society giveback: we leverage our ICT capabilities to help address the digital divide and support underserved communities. Our key initiatives include the development of a customized system that enables visually impaired individuals to work in call centers, the "Tech4Good Digital Empowerment Ecosystem" designed to enhance digital access and learning opportunities for students in remote areas, and the deployment of our 5G private network to support emergency telemedicine services. In addition to our technology-based initiatives, we actively promote employee volunteerism to encourage direct engagement and contribution to local communities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•anti-fraud achievements: our anti-fraud measures have been at the forefront of the telecommunications industry. For example, we have AI+ICT information and communication technology capabilities to support fraud identification and prevention. In addition, we launched the international fraud calls alerting service to fight against international scam phone calls. We are also in the process of launching anti-fraud voice messages as well as domestic and overseas anti-fraud SMS. From interception to alters and from fixed network to mobile network, we continue to expand protection coverage for telecommunications with an aim to benefit the society.

***Corporate Governance***

Our governance practices serve as an essential role in our ability to conduct our operations responsibly and ethically. Our governance practices mainly include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•strategy alignment: we have committed to strong corporate governance that directly aligns with our long-term strategies and financial and operating plans. In the environment of evolving market, we also timely adjust our strategies to optimize our business and enhance our management control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•board diversity: our board of directors is diversified to cover our business operations, operating dynamics and business development, with considerations of diversity in gender, age, nationality, culture and ethnic diversity. Our board possesses relevant competencies, including operational judgment, accounting and finance experience, operating and crisis management skills, industry insight, global market knowledge, leadership skills, decision-making ability and sustainability development capability. We have set concrete objectives to improve board diversity, including maintaining at least one female director on the board and ensuring that members are from various backgrounds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•governance with diversity and inclusion: we have worked to create diversity so that we are more reflective of our society with a range of perspectives to support our business decision-making. Our directors also prioritize inclusion and ensure equal access of all genders and groups of employees to training, career development, nominations for promotions and professional opportunities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•incorporate ESG targets into senior executives' compensation: since 2022, we have linked part of our senior executives' performance-based compensation to the Company's ESG goals to ensure their decisions align with investors' long-term interests. Each year, the proportion of compensation tied to our ESG targets has increased, along with the number of employees covered. By 2025, 30% of performance-based compensation was directly linked to ESG targets for all senior executives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•incentive compensation clawback policy: this policy states that the Company should recover erroneously awarded compensation which any portion of such incentive compensation is received by the covered executives during the last three full fiscal years or any applicable transition period preceding the date that the Company is required to restate its financial statements which resulting from the issuer's material noncompliance with any financial reporting requirement under securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•anti-corruption practices: In 2024, we have introduced ISO 37001 Anti-Bribery Management System to ensure compliance with relevant legal requirements in our daily operations. By establishing preventive

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and monitoring mechanisms, we aim to mitigate legal risks and penalties associated with corruptive conducts. In November 2024, we entrusted a third-party agency to perform the audit and successfully passed it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•sustainable finance: we consider ESG factors in our investment decisions to ensure our targets align with specific ESG objectives. In August 2025, we issued a sustainability bond (unsecured corporate bond) of NT$3.5 billion (approximately US$0.1 billion). The proceeds were used to finance business developments, including investments for environmental protection and social development. Through this sustainable finance instrument, we are playing an important role in sustainability efforts and fulfilling our green commitments.

For further information on our ESG initiatives, please visit our annual Sustainability ESG Report, publicly available on our ESG website at: https://www.cht.com.tw/en/home/cht/esg/esg-report/sustainability-esg-report. The information contained on our website is not incorporated herein by reference and does not constitute part of this annual report.

**C. Organizational Structure** 

Set forth below is a diagram indicating our organizational structure as of March 31, 2026. Please refer to Exhibit 8.1 for the subsidiaries' jurisdiction of incorporation.

![img118205201_0.jpg](img118205201_0.jpg)

**D. Property, Plant and Equipment**

Please refer to "—B. Business Overview" for a discussion of our property, plant and equipment.

**ITEM 4A. UNRESOLVED STAFF COMMENTS**

None.

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**ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS** 

*You should read the following discussion of our financial condition and results of operations together with the consolidated financial statements and the notes to such statements included in this annual report.*

*For the convenience of readers, NT dollar amounts used in this section for, and as of, the year ended December 31, 2025 have been translated into U.S. dollar amounts using US$1.00=NT$31.37, set forth in the statistical release of the Federal Reserve Board of the United States on December 31, 2025. The U.S. dollar translation appears in parentheses next to the relevant NT dollar amount.*

**Overview**

A number of recent and expected future developments have had, and in the future may have, a material impact on our financial condition and results of operations. These developments include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•changes in our revenue composition and sources of revenue growth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•tariff adjustments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•capital expenditures as a result of technological advancements and changes in our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•personnel expenses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•taxation.

Each of these developments is discussed below.

***Changes in our revenue composition and sources of revenue growth*** 

Our operating segments are (i) consumer business, (ii) enterprise business, (iii) international business and (iv) others. Operating segments are defined as components of an entity regarding which discrete financial information is available for regular evaluation of the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Our measure of operating segment performance is mainly based on revenues and income before income tax.

The table below sets forth the revenues from our principal lines of business as a percentage of total revenues for the periods indicated.

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
| Revenues: |  |  |  |
| Consumer Business | 61.4 | 60.9 | 60.7 |
| Enterprise Business | 32.7 | 32.8 | 32.7 |
| International Business | 4.1 | 4.3 | 4.0 |
| Others | 1.8 | 2.0 | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 100.0 | 100.0 | 100.0 |

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Our consumer business has been an important source of revenues over the last three years. We derive our consumer business revenues from mobile service, fixed-line service, sales and other services. Revenues from our consumer business slightly decreased as a percentage of our total revenues in 2024 and 2025, mainly due to the revenue decreases in local and long distance voice services, partially offset by the increases in mobile and fixed broadband services.

Our enterprise business has also been a significant contributor to our revenues over the last three years. We derive our enterprise business revenues from mobile service, fixed-line service, ICT business and other services. Revenues from our enterprise business increased as a percentage of our total revenues in 2024, mainly due to the growth in ICT business revenues, including IDC, cloud, cybersecurity, and big data services, driven by both project-based and recurring revenues. Revenues from our enterprise business decreased as a percentage of our total revenues in 2025, mainly due to the decrease in fixed-line services and other services revenue.

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Our international business has been another important source of revenues over the last three years. We derive our international business revenues from fixed-line service, ICT business and other services. Revenues from our international business gradually increased as a percentage of our total revenues from 2023 to 2024, mainly due to the rising demand for ICT services from global clients, particularly leased circuit, IDC, cloud, integrated ICT solutions, and roaming services. The percentage of total revenues represented by our international business revenues decreased in 2025, mainly due to the decrease in international voice service revenue.

Our other revenues as a percentage of our total revenues increased from 2023 to 2024, and continued to increase in 2025. This trend was mainly due to changes in the contribution from one of our subsidiaries, CHPT, which is a semiconductor testing company.

***Tariff adjustments***

We adjust our tariffs and offer promotional packages from time to time primarily in response to market conditions. We also from time to time are required to adjust our pricing in line with domestic regulations.

According to the announcement by the NCC on March 15, 2024, this round, for 2024 to 2028, of adjustments applied to the wholesale tariffs for IP peering and domestic leased line services, which was subject to an adjustment by ∆CPI 5.09%. This round of adjustments also applied to the retail fees for xDSL and FTTx services (excluding ADSL, the services with downlink speed of 12 Mbps and below, and the services with downlink speeds of 300 Mbps and over), which was subject to an adjustment by ∆CPI-3.32%. The ∆CPI for 2024 was 2.18%, that was used for the tariff reduction starting from April 1, 2025 to March 31, 2026. The ∆CPI for 2025 that was used for the tariff reduction starting from April 1, 2026 was 1.66%. We do not expect such tariff reduction to have a material adverse impact on our results of operations.

The NCC issued a notice for the promulgation of the "Upper Limits on the Termination Rates for Voice Service over Fixed Network Provided by Significant Market Powers" on June 5, 2023. The interconnection fees of local telephones, domestic long-distance or international calls, and mobile-to-fixed-line calls should be decreased gradually from June 5, 2023 to December 31, 2026 in four years. The interconnection rate between fixed-line customers and other fixed-line customers is reduced from NT$0.30 to NT$0.24 per minute during peak times and from NT$0.09 to NT$0.08 per minute during off-peak times. The interconnection rate for fixed line customers to domestic long distance or international is reduced from NT$0.31 to NT$0.27 per minute. The interconnection rate for calls initiated by mobile customers to fixed-line customers is reduced from NT$0.3943 to NT$0.2939 per minute during peak times and from NT$0.1883 to NT$0.1440 per minute during off-peak times.

Besides the mandatory tariff reduction mentioned above, we, from time to time, voluntarily implemented tariff adjustments in our broadband and mobile businesses in the past few years to consolidate our market share.

***Capital expenditures as a result of technological advancements and changes in our business*** 

In recent years, we have focused on modernizing and upgrading our mobile services network and on developing our FTTx network, which enables high-speed information transmission over optical fiber. Constructing the fiber network in new buildings and areas with 300 Mbps (or above, up to 2 Gbps) for households and 10 Gbps for enterprises is our immediate task. Our ultimate goal is to optimize our capital expenditures by investing in infrastructures as well as supporting innovative and well-returned services/products. We evaluate our investment opportunities by benchmarking them against internal return requirements.

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***Personnel expenses***

Personnel expenses constitute a significant portion of our operating costs and expenses. In 2023, 2024 and 2025, personnel expenses represented 26.2%, 26.7% and 27.4% of our total operating costs and expenses, respectively. The table below sets forth information regarding our personnel expenses and as a percentage of our total operating costs and expenses for the periods indicated.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2023** | **2024** | **2024** | **2025** | **2025** |
|  | **(in billions of NT$, except percentages)** | **(in billions of NT$, except percentages)** | **(in billions of NT$, except percentages)** | **(in billions of NT$, except percentages)** | **(in billions of NT$, except percentages)** | **(in billions of NT$, except percentages)** |
| Total personnel expenses | 46.2 | 26.2% | 48.9 | 26.7% | 51.4 | 27.4% |
| Total operating costs and expenses | 176.2 | 100.0% | 183.2 | 100.0% | 187.4 | 100.0% |

---

At the time of our privatization, we settled all of our then existing defined benefit pension obligations in full. After completing our privatization on August 12, 2005, all of our continuing employees were deemed to have commenced employment as of August 12, 2005 for seniority purposes under our pension plans in effect after privatization. Under applicable ROC regulations, upon our privatization, the MOTC assumed the obligation to make annuity payments to all of our employees that retired before our privatization.

***Taxation***

The income tax rate for profit-seeking enterprises is 20% in the ROC. We benefit from tax incentives, including tax credits of up to 15% of some of our research and development expenses in accordance with the Statute for Innovating Industries. In addition, after-tax earnings not distributed to stockholders as dividends in the following year were assessed with a 5% unappropriated earnings tax. Under IFRSs, the 5% tax on unappropriated earnings is accrued during the year the earnings arise and adjusted to the extent that distributions are approved by the stockholders in the following year.

**A. Operating Results** 

The following table sets forth our revenues, operating costs and expenses, income from operations and other financial data for the periods indicated.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **NT$** | **NT$** | **NT$** | **US$** |
|  |  | **(in billions)** | **(in billions)** |  |
| Revenues: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer Business | 137.1 | 140.0 | 143.4 | 4.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Enterprise Business | 73.0 | 75.4 | 77.2 | 2.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;International Business | 9.2 | 9.9 | 9.5 | 0.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 3.9 | 4.7 | 6.0 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 223.2 | 230.0 | 236.1 | 7.5 |
| Operating costs | 141.8 | 146.6 | 149.1 | 4.7 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketing | 23.5 | 25.1 | 26.0 | 0.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 6.8 | 7.2 | 7.7 | 0.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 3.9 | 4.1 | 4.4 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Expected credit loss | 0.2 | 0.2 | 0.2 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 34.4 | 36.6 | 38.3 | 1.3 |
| Other income and expenses | (0.6) | 0.1 | (0.1) |  |
| Income from operations | 46.4 | 46.9 | 48.6 | 1.5 |
| Non-operating income and expenses | 0.6 | 0.9 | 1.7 | 0.1 |
| Income before income tax | 47.0 | 47.8 | 50.3 | 1.6 |
| Income tax expense | 8.9 | 9.3 | 9.8 | 0.3 |
| Consolidated net income | 38.1 | 38.5 | 40.5 | 1.3 |
| Attributable to: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stockholders of the parent | 37.0 | 37.2 | 38.7 | 1.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Noncontrolling interests | 1.1 | 1.3 | 1.8 | 0.1 |

---

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The following table sets forth our revenues, operating costs and expenses, income from operations and other financial data as a percentage of our total revenues for the periods indicated.

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **(as percentages of total revenues)** | **(as percentages of total revenues)** | **(as percentages of total revenues)** |
| Revenues: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer Business | 61.4 | 60.9 | 60.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Enterprise Business | 32.7 | 32.8 | 32.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;International Business | 4.1 | 4.3 | 4.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 1.8 | 2.0 | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 100.0 | 100.0 | 100.0 |
| Operating costs | 63.5 | 63.7 | 63.2 |
| Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketing | 10.6 | 10.9 | 11.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 3.0 | 3.1 | 3.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 1.7 | 1.8 | 1.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Expected credit loss | 0.1 | 0.1 | 0.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 15.4 | 15.9 | 16.2 |
| Other income and expenses | (0.3) |  |  |
| Income from operations | 20.8 | 20.4 | 20.6 |
| Non-operating income and expenses | 0.3 | 0.4 | 0.7 |
| Income before income tax | 21.1 | 20.8 | 21.3 |
| Income tax expense | 4.0 | 4.1 | 4.2 |
| Consolidated net income | 17.1 | 16.7 | 17.1 |
| Attributable to: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stockholders of the parent | 16.6 | 16.1 | 16.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Noncontrolling interests | 0.5 | 0.6 | 0.8 |

---

Each of our operating segments is managed separately due to the fact that each represents a strategic business unit that serves different types of customers. We measure our segment performances mainly based on revenues and income before income tax.

**The year ended December 31, 2025 compared with the year ended December 31, 2024** 

***Revenues*** 

Our revenues increased to NT$236.1 billion (US$7.5 billion) in 2025 as compared to NT$230.0 billion in 2024, mainly due to an increase in revenues generated from consumer business, enterprise business and others. The details of which are as follows:

*Consumer Business* 

Our consumer business revenues include mobile service revenues, fixed-line service revenues, sales revenues and other revenues. Consumer business revenues accounted for 60.9% and 60.7% of our revenues in 2024 and 2025, respectively. Our consumer business revenues increased by 2.4% from NT$140.0 billion in 2024 to NT$143.4 billion (US$4.6 billion) in 2025, mainly due to increases of mobile service revenues attributed to 5G mobile migration, sales revenues, and fixed broadband revenues, partially offset by a decrease of fixed voice revenues.

*Mobile services.* Our mobile service revenues increased by 3.2% from NT$57.1 billion in 2024 to NT$58.9 billion (US$1.9 billion) in 2025, due to an increase of postpaid subscriber numbers and steady 5G migration.

*Fixed-line services.* Our fixed-line service revenues slightly increased by 0.5% from NT$42.9 billion in 2024 to NT$43.1 billion (US$1.4 billion) in 2025. This increase was due to the increase of data communication and broadband access revenues driven by the successful upsell propelled by the HiNet Higher-Speed promotion plan, partially offset by the decreased voice revenues.

*Sales.* Revenues generated from sales increased by 3.4% from NT$37.2 billion in 2024 to NT$38.5 billion (US$1.2 billion) in 2025, due to the stabilized smartphones supply.

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*Others*. Our other revenues slightly increased by 1.9% from NT$2.8 billion in 2024 to NT$2.9 billion (US$0.1 billion) in 2025.

*Enterprise Business* 

Our enterprise business revenues include mobile service revenues, fixed-line service revenues, ICT revenues and other revenues. Revenues from our enterprise business accounted for 32.8% and 32.7% of our revenues in 2024 and 2025, respectively. Revenues from our enterprise business increased by 2.5% from NT$75.4 billion in 2024 to NT$77.2 billion (US$2.5 billion) in 2025, due to the strong growth of ICT business revenue.

*Mobile services*. Our mobile service revenues increased by 4.1% from NT$9.2 billion in 2024 to NT$9.5 billion (US$0.3 billion) in 2025, due to 5G mobile migration.

*Fixed-line services.* Our fixed-line service revenues slightly decreased by 0.5% from NT$33.8 billion in 2024 to NT$33.6 billion (US$1.1 billion) in 2025, due to the decreased voice revenues, partially offset by the increase of data communication and broadband access revenues driven by the speed upgrade.

*ICT Business*. Revenues from our ICT business increased by 9.2% from NT$27.8 billion in 2024 to NT$30.4 billion (US$1.0 billion) in 2025, due to the growth of projects and recurring revenues for IDC, cloud, cybersecurity, and big data related services.

*Others.* Our other revenues decreased by 19.0% from NT$4.6 billion in 2024 to NT$3.8 billion (US$0.1 billion) in 2025.

*International Business* 

Revenues from international business accounted for 4.3% and 4.0% of our revenues in 2024 and 2025, respectively. Revenues from our international business decreased by 4.1% from NT$9.9 billion in 2024 to NT$9.5 billion (US$0.3 billion) in 2025, due to a decrease of fixed voice revenues, partially offset by the rising demand for leased line, IDC, cloud, and integrated ICT solutions.

*Fixed-line Services.* Revenues from our fixed-line services decreased by 6.0% from NT$5.1 billion in 2024 to NT$4.8 billion (US$0.2 billion) in 2025, due to the strategic withdraw of international voice services.

*ICT Business.* Revenues from our ICT business increased by 2.2% from NT$4.0 billion in 2024 to NT$4.1 billion (US$0.1 billion) in 2025, due to the rising demand for IDC, cloud, and integrated ICT solutions from global clients.

*Others.* Our other revenues decreased by 22.9% from NT$0.8 billion in 2024 to NT$0.6 billion (US$0.02 billion) in 2025, due to a decrease in mobile service revenue.

*Others*

Other revenues accounted for 2.0% and 2.6% of our revenues in 2024 and 2025, respectively. Our other revenues increased from NT$4.7 billion in 2024 to NT$6.0 billion (US$0.1 billion) in 2025. The increase was due to higher revenues derived from CHPT.

***Operating Costs and Expenses*** 

Our operating costs and expenses include depreciation and amortization expenses, personnel expenses, cost of goods sold, interconnection and service costs, marketing expenses, costs of materials and maintenance, as well as spectrum usage fees.

Operating costs and expenses increased by 2.3% from NT$183.2 billion in 2024 to NT$187.4 billion (US$6.0 billion) in 2025. This increase was due to increases in personnel expenses, ICT project costs, and utilities expenses.

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Personnel expenses increased due to adjustments of employee benefit policies, leading to higher salaries, bonuses, and welfare costs. ICT project costs were mainly driven by the growth of ICT business. The increase in utilities expenses was primarily due to the adjustment in electricity prices.

***Operating Costs and Expenses by Business Segment***

*Consumer Business* 

Our consumer business costs and expenses increased by 1.6% from NT$112.7 billion in 2024 to NT$114.5 billion (US$3.7 billion) in 2025, primarily due to (i) increases in personnel expenses due to adjustments to employee benefit policies, and (ii) increases in utilities expenses resulting from electricity rate adjustments.

*Enterprise Business* 

Our enterprise business operating costs and expenses increased by 3.4% from NT$63.6 billion in 2024 to NT$65.8 billion (US$2.1 billion) in 2025. This increase was due to (i) increases in personnel expenses due to adjustments to employee benefit policies, and (ii) increases in ICT project costs, primarily driven by the robust growth of our ICT business.

*International Business*

Our international business operating costs and expenses decreased by 3.9% from NT$9.0 billion in 2024 to NT$8.7 billion (US$0.3 billion) in 2025, due to decreases in service-related costs resulting from our strategic withdrawal of international voice services, partially offset by increases in personnel expenses due to the adjustments to employee benefit policies.

*Others*

The costs and expenses from our other business increased by 24.0% from NT$3.0 billion in 2024 to NT$3.7 billion (US$0.1 billion) in 2025, due to operating growth derived from CHPT.

***Other Income and Expenses*** 

We recorded net other income of NT$0.1 billion in 2024 and net other expenses of NT$0.1 billion (US$3.6 million) in 2025, respectively. The differences between 2024 and 2025 were due to the recognition of impairment loss on property, plant and equipment in 2025.

***Income from Operations and Operating Margin***

As a result of the foregoing, our income from operations increased by 3.6% from NT$46.9 billion in 2024 to NT$48.6 billion (US$1.5 billion) in 2025. Our operating margin slightly increased from 20.4% in 2024 to 20.6% in 2025.

***Non-operating Income and Expenses***

Our non-operating income increased from NT$0.9 billion in 2024 to NT$1.7 billion (US$54.8 million) in 2025. The increase was due to an increase in gain on disposal of investments accounted for using equity method.

***Income before Income Tax***

As a result of the foregoing, segment income before tax for our consumer business increased by 5.2% from NT$29.7 billion in 2024 to NT$31.4 billion (US$1.0 billion) in 2025; segment income before tax for our enterprise business decreased by 2.9% from NT$12.9 billion in 2024 to NT$12.5 billion (US$0.4 billion) in 2025; segment income before tax for our international business decreased by 6.9% from NT$2.4 billion in 2024 to NT$2.2 billion (US$0.1 billion) in 2025; and segment income before tax for our other business increased by 50.9% from NT$2.8 billion in 2024 to NT$4.2 billion (US$134.9 million) in 2025.

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***Income Tax***

Our income tax was NT$9.3 billion and NT$9.8 billion (US$0.3 billion) in 2024 and 2025, respectively. Our effective tax rate decreased slightly from 19.5% in 2024 to 19.4% in 2025.

***Net Income***

As a result of the foregoing, our net income attributable to stockholders of the parent was NT$37.2 billion and NT$38.7 billion (US$1.2 billion) in 2024 and 2025, respectively. Our net margin increased from 16.1% in 2024 to 16.3% in 2025.

**The year ended December 31, 2024 compared with the year ended December 31, 2023** 

***Revenues*** 

Our revenues increased to NT$230.0 billion in 2024 as compared to NT$223.2 billion in 2023, mainly due to an increase in revenues generated from consumer business, enterprise business and international business. The details of which are as follows:

*Consumer Business* 

Our consumer business revenues include mobile service revenues, fixed-line service revenues, sales revenues and other revenues. Consumer business revenues accounted for 61.4% and 60.9% of our revenues in 2023 and 2024, respectively. Our consumer business revenues increased by 2.1% from NT$137.1 billion in 2023 to NT$140.0 billion in 2024, mainly due to increases of mobile service revenues attributed to 5G mobile migration, sales revenues, and fixed broadband revenues, partially offset by a decrease of fixed voice revenues.

*Mobile services.* Our mobile service revenues increased by 3.5% from NT$55.1 billion in 2023 to NT$57.1 billion in 2024 due to an increase of postpaid subscriber numbers, steady 5G migration and roaming service recovery.

*Fixed-line services.* Our fixed-line service revenues slightly increased by 0.7% from NT$42.6 billion in 2023 to NT$42.9 billion in 2024. This increase was due to the increase of data communication and broadband access revenues driven by the successful upsell propelled by the HiNet Higher-Speed promotion plan, partially offset by the decreased voice revenues.

*Sales.* Revenues generated from sales increased by 1.1% from NT$36.8 billion in 2023 to NT$37.2 billion in 2024, due to the stabilized smartphones supply and increased terminal sales.

*Others*. Our other revenues increased by 9.7% from NT$2.6 billion in 2023 to NT$2.8 billion in 2024. This was due to an increase in ICT business revenues.

*Enterprise Business* 

Our enterprise business revenues include mobile service revenues, fixed-line service revenues, ICT revenues and other revenues. Revenues from our enterprise business accounted for 32.7% and 32.8% of our revenues in 2023 and 2024, respectively. Revenues from our enterprise business increased by 3.3% from NT$73.0 billion in 2023 to NT$75.4 billion in 2024 due to the strong growth of ICT business revenue.

*Mobile services*. Our mobile service revenues increased by 0.4% from NT$9.1 billion in 2023 to NT$9.2 billion in 2024 due to 5G mobile migration.

*Fixed-line services.* Our fixed-line service revenues slightly decreased by 0.6% from NT$34.0 billion in 2023 to NT$33.8 billion in 2024 due to the decreased voice revenues, partially offset by the increase of data communication and broadband access revenues driven by the speed upgrade.

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*ICT Business*. Revenues from our ICT business increased by 12.5% from NT$24.7 billion in 2023 to NT$27.8 billion in 2024, due to the growth of projects and recurring revenues for IDC, cloud, cybersecurity, 5G+AIoT and big data related services.

*Others.* Our other revenues decreased by 11.2% from NT$5.2 billion in 2023 to NT$4.6 billion in 2024. This decrease was due to a decrease in the satellite government subsidies.

*International Business* 

Revenues from international business accounted for 4.1% and 4.3% of our revenues in 2023 and 2024, respectively. Revenues from our international business increased by 7.9% from NT$9.2 billion in 2023 to NT$9.9 billion in 2024, due to the rising demand for leased circuit, IDC, cloud, and integrated ICT solutions.

*Fixed-line Services.* Revenues from our fixed-line services decreased by 5.6% from NT$5.4 billion in 2023 to NT$5.1 billion in 2024, due to the strategic withdraw of international voice services.

*ICT Business.* Revenues from our ICT business increased by 41.4% from NT$2.8 billion in 2023 to NT$4.0 billion in 2024, due to the rising demand for IDC, cloud, and integrated ICT solutions from global clients.

*Others.* Our other revenues decreased by 14.8% from NT$1.0 billion in 2023 to NT$0.8 billion in 2024, due to a decrease from government subsidies for satellites construction.

*Others*

Other revenues accounted for 1.8% and 2.0% of our revenues in 2023 and 2024, respectively. Our other revenues increased from NT$3.9 billion in 2023 to NT$4.7 billion in 2024. The increase was due to higher revenues derived from CHPT.

***Operating Costs and Expenses*** 

Our operating costs and expenses include depreciation and amortization expenses, personnel expenses, cost of goods sold, interconnection and service costs, marketing expenses, costs of materials and maintenance, as well as spectrum usage fees.

Operating costs and expenses increased by 4.0% from NT$176.2 billion in 2023 to NT$183.2 billion in 2024. This increase was due to increases in personnel expenses, ICT project costs, and utilities expenses. Personnel expenses increased due to adjustments of employee benefit policies, leading to higher salaries, bonuses, and welfare costs. ICT project costs were mainly driven by the growth of ICT business. The increase in utilities expenses was primarily due to the adjustment in electricity prices.

***Operating Costs and Expenses by Business Segment***

*Consumer Business* 

Our consumer business costs and expenses increased by 2.1% from NT$110.3 billion in 2023 to NT$112.7 billion in 2024, primarily due to (i) adjustments in employee benefit policies, and (ii) increases in maintenance costs, mainly driven by the growth of our core business.

*Enterprise Business* 

Our enterprise business operating costs and expenses increased by 6.6% from NT$59.7 billion in 2023 to NT$63.6 billion in 2024. This increase was due to an increase in ICT project costs, primarily driven by the robust growth of our ICT business.

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*International Business*

Our international business operating costs and expenses increased by 7.3% from NT$8.4 billion in 2023 to NT$9.0 billion in 2024, due to the increase in ICT-related costs, which is in turn driven by the growth of our public cloud and ICT business.

*Others*

The costs and expenses from our other business increased by 5.9% from NT$2.8 billion in 2023 to NT$3.0 billion in 2024, due to operating growth derived from CHPT.

***Other Income and Expenses*** 

We recorded net other expenses of NT$0.6 billion in 2023 and net other income of NT$0.1 billion in 2024, respectively. The differences between 2023 and 2024 were due to the impairment loss on investment properties and property, plant and equipment in 2023.

***Income from Operations and Operating Margin***

As a result of the foregoing, our income from operations increased by 1.1% from NT$46.4 billion in 2023 to NT$46.9 billion in 2024. Our operating margin slightly decreased from 20.8% in 2023 to 20.4% in 2024.

***Non-operating Income and Expenses***

Our non-operating income increased from NT$0.6 billion in 2023 to NT$0.9 billion in 2024. The increase was due to an increase in interest income, driven by the increase in acquisition of time deposits and negotiable certificates of deposit.

***Income before Income Tax***

As a result of the foregoing, segment income before tax for our consumer business increased by 3.0% from NT$28.9 billion in 2023 to NT$29.7 billion in 2024; segment income before tax for our enterprise business decreased by 10.3% from NT$14.4 billion in 2023 to NT$12.9 billion in 2024; segment income before tax for our international business increased by 11.3% from NT$2.1 billion in 2023 to NT$2.4 billion in 2024; and segment income before tax for our other business increased by 75.7% from NT$1.6 billion in 2023 to NT$2.8 billion in 2024.

***Income Tax***

Our income tax was NT$8.9 billion and NT$9.3 billion in 2023 and 2024, respectively. Our effective tax rate increased slightly from 19.0% in 2023 to 19.5% in 2024.

***Net Income***

As a result of the foregoing, our net income attributable to stockholders of the parent was NT$37.0 billion and NT$37.2 billion in 2023 and 2024, respectively. Our net margin decreased from 16.6% in 2023 to 16.1% in 2024.

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**B. Liquidity and Capital Resources** 

**Liquidity**

The following table sets forth the summary of our cash flows for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** | **2025** |
|  | **NT$** | **NT$** | **NT$** | **US$** |
|  |  | **(in billions)** | **(in billions)** |  |
| Net cash provided by operating activities | 74.6 | 79.2 | 77.5 | 2.5 |
| Net cash used in investing activities | (50.2) | (35.3) | (28.3) | (0.9) |
| Net cash used in financing activities | (40.7) | (41.5) | (48.5) | (1.6) |
| Effect of exchange rate changes | 0.0 | 0.0 | 0.0 | 0.0 |
| Net increase (decrease) in cash and cash equivalents | (16.4) | 2.4 | 0.7 | 0.0 |
| Cash and cash equivalents at end of year | 33.8 | 36.2 | 36.9 | 1.2 |

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Our primary source of liquidity is cash flow from operations, which represents operating profit adjusted for non-cash items, primarily depreciation and amortization and changes in current assets and liabilities. Notes 23, 24 and 25 to our consolidated financial statements, included elsewhere in this annual report, provide additional details as to our bank loans and bonds payable. We believe that our working capital is sufficient to meet our present cash flow requirements.

In 2025, we generated NT$77.5 billion (US$2.5 billion) in net cash from operating activities as compared to NT$79.2 billion in 2024. The decrease was primarily due to a decrease in trade notes and accounts payable and an increase in inventories.

In 2024, we generated NT$79.2 billion in net cash from operating activities as compared to NT$74.6 billion in 2023. The increase was primarily due to an increase in income before income tax arising from our operating performance, an increase in contract liabilities from advance receipts of project business, and an increase in trade notes and accounts payable.

In 2023, we generated NT$74.6 billion in net cash from operating activities as compared to NT$76.0 billion in 2022. The decrease was primarily due to a decrease in income before income tax arising from our operating performance, an increase in income tax payment and a decrease in trade notes and accounts payable.

Historically, our net cash from operating activities has been sufficient to cover our capital expenditures, including ongoing expansion and modernization of our networks.

In 2025, our net cash used in investing activities was NT$28.3 billion (US$0.9 billion), a decrease from NT$35.3 billion in 2024. The decrease was primarily due to an increase in proceeds from time deposits and negotiable certificates of deposit with maturities of more than three months partially offset by an increase in financial assets at FVOCI.

In 2024, our net cash used in investing activities was NT$35.3 billion, a decrease from NT$50.2 billion in 2023. The decrease was primarily due to an increase in proceeds from time deposits and negotiable certificates of deposit with maturities of more than three months.

In 2023, our net cash used in investing activities was NT$50.2 billion, an increase from NT$30.8 billion in 2022. The increase was primarily due to an increase in acquisition and disposal of time deposits and negotiable certificates of deposit with maturities of more than three months.

In 2025, our net cash used in financing activities totaled NT$48.5 billion (US$1.6 billion), which mainly reflected NT$38.8 billion in dividends being paid.

In 2024, our net cash used in financing activities totaled NT$41.5 billion, which mainly reflected NT$36.9 billion in dividends being paid.

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In 2023, our net cash used in financing activities totaled NT$40.7 billion, which mainly reflected NT$36.5 billion in dividends being paid.

**Capital Resources** 

We have historically financed our capital expenditure requirements through operating cash flows and corporate bonds. In future years, the expansion and upgrade of our infrastructures, such as 5G mobile broadband, FTTx, international submarine cables, multi-orbit network, and IDC, introducing AI/automation technology to BSS/OSS, developing innovative solutions, and implementing ESG will be the focus of our capital expenditures. In the meantime, we also expect to make dividend payments on an ongoing basis. See "Item 8. Financial Information—A. Consolidated Statements and Other Financial Information." Furthermore, we may require working capital from time to time to finance purchases of materials for our maintenance and other overhead expenses. Over the next twelve months, we expect to implement our strategies about capital expenditures, dividend payments, debt repayments and other commitments by primarily relying on cash generated from operations, corporate bonds and loans from commercial banks.

As of December 31, 2025, our primary source of liquidity was NT$36.9 billion (US$1.2 billion) in cash and cash equivalents. In addition, the unused line of credit for unsecured bank loans and secured bank loans amounted to NT$27.0 billion (US$0.9 billion) and NT$15.0 million (US$0.5 million), respectively, as of December 31, 2025.

As of December 31, 2025, we had bonds payable in the amount of NT$25.2 billion (US$0.8 billion) at interest rates ranging from 0.42% to 1.73%.

As of December 31, 2025, our subsidiary, Senao International Co., Ltd. had short-term unsecured loans of NT$0.3 billion (US$10.8 million) at interest rates ranging from 2.05% to 2.08%.

As of December 31, 2025, our subsidiary, Light Era Development Co., Ltd. had long-term secured loans of NT$1.6 billion (US$51.0 million) at interest rates of 2.10%.

As part of the government's effort to upgrade the existing telecommunications infrastructure, we and other public utility companies were required by the ROC government to contribute a certain amount of money to a Piping Fund, administered by the Taipei City Government. A total of NT$1.0 billion was contributed by us on August 15, 1996. This fund is used to finance various telecommunications infrastructure projects. We accounted for the contribution as other financial assets on our consolidated balance sheets.

Note 41 to our consolidated financial statements included elsewhere in this annual report provides a description of the assets that are pledged as collaterals for bank loans, custom duties of the imported materials and warranties of contract performance, the trust account the Company entrusts to Land Bank of Taiwan for fund control and property rights management.

**Capital Expenditures**

Our capital expenditures in 2023, 2024 and 2025 were mainly to support operations. We have financed our capital expenditures using cash flows operations and corporate bonds. The following table sets forth a summary of our capital expenditures for the periods indicated.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2023** | **2024** | **2024** | **2025** | **2025** |
|  | **(in billions of NT$, except percentages)** | **(in billions of NT$, except percentages)** | **(in billions of NT$, except percentages)** | **(in billions of NT$, except percentages)** | **(in billions of NT$, except percentages)** | **(in billions of NT$, except percentages)** |
| **Capital Expenditures:** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mobile communications business | 11.1 | 36% | 9.7 | 34% | 8.2 | 30% |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 19.6 | 64% | 19.1 | 64% | 19.5 | 70% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total capital expenditures | 30.7 | 100% | 28.8 | 100% | 27.7 | 100% |

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The following table sets forth a summary of our planned capital expenditures for the year ending December 31, 2026.

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| | | |
|:---|:---|:---|
|  | **Year Ending December 31, 2026** | **Year Ending December 31, 2026** |
|  | **(in billions of NT$, except percentages)** | **(in billions of NT$, except percentages)** |
| **Capital Expenditures:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mobile communications business | 7.7 | 24% |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 24.2 | 76% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total capital expenditures | 31.9 | 100% |

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We expect our total capital expenditures to be approximately NT$31.9 billion in 2026. Our capital expenditures for 2026 are planned to be allocated to new construction of domestic and international submarine cable, the deployment of multi-orbit satellite networks, the expansion of cloud AI internet data center, the investments in maintaining a competitive edge of mobile and fix broadband business, the enhancement regarding the resilience of power and air conditioning equipment, as well as information security and cybersecurity infrastructure. We expect to finance these capital expenditures with our cash flows from operations.

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**Contractual Obligations**

Set forth below are our total contractual obligations as of December 31, 2025.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Payments Due by Period** | **Payments Due by Period** | **Payments Due by Period** | **Payments Due by Period** | **Payments Due by Period** |
|  | **Total** | **Less than<br> 1 Year** | **1-3 years** | **3-5 years** | **More than<br>5 years** |
|  | **(in billions of NT$)** | **(in billions of NT$)** | **(in billions of NT$)** | **(in billions of NT$)** | **(in billions of NT$)** |
| Contractual Obligations<sup>(1)</sup> |  |  |  |  |  |
| Short-term loans | 0.3 | 0.3 |  |  |  |
| Long-term loans | 1.6 |  | 1.6 |  |  |
| Bonds payable | 25.8 | 2.2 | 15.3 | 7.3 | 1.0 |
| Lease liabilities<sup>(2)</sup> | 11.2 | 3.9 | 5.4 | 1.7 | 0.2 |
| Total | 38.9 | 6.4 | 22.3 | 9.0 | 1.2 |

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(1)Unfunded defined benefit obligation is not included as the schedule of payments is difficult to determine. We made pension contributions of approximately NT$1.1 billion (US$35.6 million) in 2025 and expected to make pension contributions of approximately NT$1.1 billion (US$34.9 million) in 2026. See Note 29 to our consolidated financial statements for additional details regarding our pension plan.

(2)Operating lease obligations are described in Note 38 to our consolidated financial statements included elsewhere in the annual report.

As of December 31, 2025, we had remaining commitments under non-cancelable contracts with various parties, including the acquisition of property, plant and equipment of NT$21.7 billion (US$0.7 billion) and acquisition of telecommunications-related inventory of NT$8.0 billion (US$0.3 billion).

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

We entered into long term energy purchase contracts with the suppliers, under which the contract terms specify the performance periods, quantities and prices that we are required to fulfill.

**Inflation**

We do not believe that inflation in Taiwan has had a material impact on our results of operations in 2023, 2024 and 2025.

**Recent Accounting Pronouncements**

***Major differences between IFRSs and Taiwan IFRSs***

While we have adopted Taiwan IFRSs for ROC reporting purposes, we adopt IFRSs for certain filings with the SEC, including our annual reports on Form 20-F for the year ended December 31, 2013 and thereafter.

Taiwan IFRSs differs from IFRSs in certain significant respects, including to the extent that any new or amended standards or interpretations applicable under IFRSs may not be timely endorsed by the FSC. Therefore, these pronouncements will not be applicable to Taiwan IFRSs until endorsed by the FSC. Some of the major differences between IFRSs and Taiwan IFRSs that are relevant to us as of the date of this annual report are set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the "income taxes on unappropriated earnings" should be recognized at the year of earnings under IFRSs, while it should be recognized at the year of distribution under Taiwan IFRSs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•prior to incorporation, according to the laws and regulations applicable to state-owned enterprises in Taiwan, we recorded revenues from fixed-line service at the time the connection service was performed or the prepaid card was sold. Upon incorporation, net assets greater than capital stock was credited as additional paid-in capital. Part of our additional paid-in capital was from unearned revenues from fixed-line services as of that date. Under IFRSs, following the revenues recognition guidance, the above service revenues should be treated as deferred income and recognized over the time when the service is continuously provided or as consumed. Therefore, upon our first adoption of IFRSs, we should retrospectively decrease additional paid-in capital while increasing unappropriated earnings on the transition date of January 1, 2012. There is no difference in recognition of unearned revenues or

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deferred income between IFRSs and Taiwan IFRSs. However, according to the guidance released by the TWSE in March 2012, which is a part of Taiwan IFRSs, the additional paid-in capital under ROC GAAP that is not specifically promulgated under Taiwan IFRSs should not be adjusted on the transition date of January 1, 2012. Therefore, we retain such additional paid-in capital under Taiwan IFRSs.

It is difficult for us to determine the differences between Taiwan IFRSs and IFRSs on our financial statements as any new or amended standards or interpretations applicable under IFRSs may not be timely endorsed by the FSC.

***Other recent accounting pronouncements under IFRSs***

For a summary of new standards, amendments and interpretations issued under IFRSs but not effective for 2025 and which have not been adopted early by us, see Note 5 to our consolidated financial statements included elsewhere in this annual report.

**C. Research and Development, Patents and Licenses** 

Our research and development priorities for 2025 included innovative Information and Communication Technology (ICT) services, advanced cloud-network integration technologies, and energy-saving technologies. Key research and development achievements and projects are described as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Innovative Information and Communication Technology (ICT) services

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•AIoT: AI-optimized intersection traffic signal adaptive control using connected-vehicle data and edge computing, AI-powered traffic incident decision support based on video analytics and deep learning, technology-enabled traffic and environmental enforcement using multi-sensor monitoring and image recognition, smart inspection using unmanned vehicles with high-resolution imaging and automated route planning, and smart port and harbor leveraging IoT sensing and digital twin technologies, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Smart life: metaverse platform, metaverse virtual exhibitions, live holographic performance, product recommendation chatbot, AI-powered SMS fraud prevention, monitoring system for home-based hospitalization, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Artificial intelligence: speech recognition and generation, text analysis and generation, customer service chatbots, AI Platform-as-a-Service (AI PaaS), human activity recognition, facial recognition access control, domain-specific large language models, multimodal-content generation, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Cybersecurity: Post-Quantum Cryptography (PQC) certificates, AI fraud prevention, Fast Identity Online (FIDO), mobile authentication, blockchain and smart contracts, zero trust security, cybersecurity for vehicle-to-everything (V2X), etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Advanced cloud-network integration technologies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Network communication: open all-photonic network (Open APN), Wi-Fi 7 wireless network, 5G/5G-Advanced SA network, 5G edge computing, 5G private network, 5G Network Open API, multi-orbit satellite network, network functions virtualization/cloudification, ultra-high-speed access network, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Network operation, maintenance and management: autonomous network management, network digital twin, mobile customer experience analysis, mobile base station energy saving, telco cloud management, smart home network management, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Cloud computing: multi-cloud management platform, Data-Centric Infrastructure (DCI) architecture, Remote Direct Memory Access (RDMA) accelerator, cloud Data Processing Unit (DPU) computing technology, edge computing platform, Model Context Protocol (MCP), etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Energy-saving technologies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•energy-saving solutions for data centers and networks, immersion rack performance verification technology, low-carbon power supply dispatch technology, etc.

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In 2025, we applied for a total of 161 patents and obtained 148 patents. We also received 25 major awards in Taiwan and internationally.

**D. Trend Information** 

See "—Overview" for a discussion of the most significant recent trends that have had, and in the future may have, a material impact on our results of operations, financial condition and capital expenditures. In addition, see discussions included in this Item for a discussion of known trends, uncertainties, demands, commitments or events that we believe are reasonably likely to have a material effect on our net operating revenues, income from continuing operations, profitability, liquidity or capital resources, or that would cause reported financial information not necessarily to be indicative of future operating results or financial condition.

**E. Critical Accounting Estimates** 

Information about critical accounting judgments and key sources of estimation uncertainty and assumption, please refer to Note 4 to our consolidated financial statements included in this annual report for details.

**ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES**

**A. Directors and Senior Management** 

Our Articles of Incorporation provide for a board of directors consisting of seven to fifteen directors bestowed with a three-year tenure. The following table sets forth the name, age and position of each of our directors and such person's position as of February 28, 2026. There is no family relationship among any of these persons. These directors have terms until May 28, 2028. Pursuant to the ROC Company Act, a person may serve as our director in his or her personal capacity or as the representative of another legal entity. A director who serves as the representative of a legal entity may be removed or replaced at any time at the discretion of that legal entity, and the replacement director may serve the remainder of the term of office of the replaced director. All of our non-independent directors are representatives of the MOTC.

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Chih-Cheng Chien | 66 | Chairman, Chief Executive Officer and Director |
| Rong-Shy Lin | 61 | President and Director |
| Sheng-Yuan Wu | 65 | Director |
| Ching-Hwi Lee | 62 | Director |
| Chi-Hwa Chern | 58 | Director |
| Li-Feng Chien | 63 | Director |
| I-Jen Su | 60 | Director |
| Shiow-Long Horng | 60 | Director |
| Su-Ming Lin | 70 | Independent Director |
| Yi-Chin Tu | 50 | Independent Director |
| Ikujin Ko | 58 | Independent Director |
| Jer-Liang Yeh | 56 | Independent Director |
| Ching-Feng Hsueh | 58 | Independent Director |

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**Chih-Cheng Chien** is the Chairman, Chief Executive Officer and director of our company. Dr. Chien assumed the role of our Chairman and Chief Executive Officer on September 30, 2024. He served as our Senior Executive Vice President since July 2023 and the President of our Network Technology Group since January 2022. He was a director of SENAO International Co., Ltd. from 2021 to 2023 and a director of Senao Networks Inc. from 2022 to 2024. Dr. Chien was the President of our Mobile Business Group from January 2021 to January 2022. Prior to that, Dr. Chien served as the President of our Telecommunication Training Institute from June 2020 to December 2020 and the Executive Advisor of our Chairman Office Overseas New Business from November 2018 to June 2020. Dr. Chien holds a Ph.D. degree in Electronic Engineering from National Taiwan Institute of Industrial Technology.

**Rong-Shy Lin** is the President and director of our company. Before assuming the role of President in September 2024, Dr. Lin was our Senior Executive Vice President, Chief Business Officer, or CBO, and Chief Information Security Officer, or CISO, from January 2024 to September 2024 and our Senior Executive Vice President, Chief Technology Officer, or CTO, and President of Chunghwa Telecommunication Laboratories from June 2020 to December 2023. He served as the Chairman of SENAO International Co., Ltd. from June 2022 to May 2023 and from August 2023 to October 2024. He also served as a director of CHT Security Co., Ltd. from June 2022 to October 2024. Prior to that, Dr. Lin was the President of our Data Communications Business Group from November 2018 to June 2020 and was the President of Telecommunication Laboratories from November 2017 to December 2023. Dr. Lin specializes in network architecture evolution, operations and maintenance systems, integrated network management, ICT system development and applications, process streamlining, telecom operations management, cloud technology, cybersecurity, and project management, and he holds a Ph.D. degree in Computer Science from National Chiao Tung University.

**Sheng-Yuan Wu** is a director of our company. Mr. Wu is currently the Political Deputy Minister of the MOTC. Prior to that, Mr. Wu had been the Director-General of the Railway Bureau of the MOTC from August 2021 to September 2023. Mr. Wu specializes in ESG, risk management, internal control, transportation planning and performance management, as well as railway, civil and hydraulic engineering, and he holds a master's degree in Hydraulic and Ocean Engineering from National Cheng Kung University.

**Ching-Hwi Lee** is a director of our company. Ms. Lee is currently the Deputy Minister of the Ministry of Culture, or MOC. Prior to that, Ms. Lee had been the Deputy Director of the National Palace Museum in Taiwan from May 2016 to March 2019. Ms. Lee specializes in cultural administration, cross-boundary governance, performing arts, as well as audiovisual and music-related creative content industry, and she holds a bachelor's degree in History from National Taiwan Normal University.

**Chi-Hwa Chern** is a director of our company. Dr. Chern is currently the Director of the Department of Industrial Development and International Affairs for Transportation of the MOTC. Prior to that, Dr. Chern had been the Chief Secretary of the Institute of Transportation of the MOTC from September 2023 to February 2025. Dr. Chern specializes in organizational management, internal control, auditing, and risk management, and the promotion of ESG strategy and sustainable development, and he holds a Ph.D. degree in Transportation Management from National Chiao Tung University.

**Li-Feng Chien** is a director of our company. Dr. Chien is currently the independent director of Appier Group Inc., Japan, Airoha Technology Corp., Uni-President Enterprises Corp., and ASUSTeK Computer Inc. Prior to that, Dr. Chien had been the Managing Director of Google Taiwan from March 2006 to January 2010 and professor in the Department of Information Management at National Taiwan University from March 2006 to January 2020. Dr. Chien specializes in software and artificial intelligence technology, Chinese search technology and internet services, and he holds a Ph.D. degree in Computer Science and Information Engineering from National Taiwan University.

**I-Jen Su** is a director of our company. Dr. Su is currently a Professor in the Department of Computer Science and Information Engineering at National Penghu University. Prior to that, Dr. Su served as a Professor and the Dean of the College of Informatics at Shu-Te University from February 2018 to July 2023. Earlier in his career, Dr. Su conducted research at the Information Technologies Lab of Chunghwa Telecommunication Laboratories from July 1993 to October 1996, where he developed deep expertise in telecommunications regulation and management in the telecommunications industry. Beyond his academic and technical background, Dr. Su has served for nine years as an independent director of UserJoy Technology Co., Ltd., a publicly listed company, from June 2013 to June

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2022, and resumed his service in June 2025. In addition, Dr. Su specializes in AI, big data analytics, internal audit, and ESG, with expertise in information security. He holds a Ph.D. in Electrical Engineering from National Cheng Kung University and possesses professional cybersecurity certifications, along with hands-on experience in conducting information security and personal data protection audits.

**Shiow-Long Horng** is a director of our company. Mr. Horng is currently an Engineer at the Business New Taipei Operational Center, Mobile Network Northern Branch, Network Technology Group, and the Vice President of CHT Workers' Union of Chunghwa Telecom. Prior to that, Mr. Horng had been the President of the CHT Workers' Union from March 2017 to March 2025. Mr. Horng specializes in mobile network technology and operations, business management, sustainable development (ESG), ICT, fintech, and marketing & commerce, as well as labor standards act compliance, labor-management relations, and collective negotiation, and holds a Bachelor's degree in Maritime and Shipping Technology from National Taiwan Ocean University with a minor in Shipping and Transportation Management.

**Su-Ming Lin** is an independent director of our company. Dr. Lin is currently an adjunct professor in the Department of Accounting of National Taiwan University. He also serves as the independent director of Taiwan Fertilizer Co., Ltd. since July 2021 and the independent director of AP Biosciences Inc., and Sunny Friend Environmental Technology Co., Ltd. since 2023. Dr. Lin is a Certified Public Accountant of the ROC. and specializes in accounting, finance, tax laws, as well as international taxation. He has participated in Taiwan's tax reforms and served as the board member and member of the Risk Management Committee and Audit Committee in the airlines and insurance sectors for many years. Dr. Lin holds a Ph.D. degree in Accounting from Arizona State University and possesses expertise in corporate governance, audit and risk management, particularly in internal control, compliance oversight and enterprise risk governance, along with board-level involvement spans financial institutions and public sector entities.

**Yi-Chin Tu** is an independent director of our company. Mr. Tu is the founder of Taiwan AI Labs and PTT, a non-profit open-source organization of the BBS club, as well as the Chairman of the Artificial Intelligence Foundation. Mr. Tu also serves as an independent director of PChome Online Inc. since 2023. Prior to that, Mr. Tu joined Microsoft in 2006 and served as the Principal Development Manager in the Microsoft AI and Research Group. He had also been the Chief R&D Officer, leading the AI services development in the Asia Pacific region. Mr. Tu specializes in AI data governance, software platform R&D and digital talent incubation, and he holds a master's degree in Computer Science and Information Engineering from National Taiwan University.

**Ikujin Ko** is an independent director of our company. Mr. Ko currently serves as the Chairman of Creative Sensor Inc. and Teco Image Systems Co., Ltd., and also serves as the independent director of Genetics Generation Advancement Corp. since 2020. From 2011 to 2021, Mr. Ko was the Chairman at Lien Chang Electronic Enterprise Co., Ltd. Mr. Ko specializes in the sales, manufacturing, and R&D of the development and application of innovative technologies. In addition, Mr. Ko focuses on geopolitical trends and global supply chain dynamics, with a comprehensive view of how such factors influence the global technology industry, offering the Company strategic guidance on risk assessment and mitigation. Mr. Ko holds both a Master of Science and a Bachelor of Science in Electrical Engineering from the School of Engineering and Applied Science at Columbia University, USA, and a Bachelor of Arts in Business and Commerce from the Faculty of Business and Commerce at Keio University, Japan.

**Jer-Liang Yeh** is an independent director of our company. Dr. Yeh is currently a professor at the Institute of Electronics Engineering, and a joint professor at the Institute of Nanoengineering and Microsystems and the Department of Power Mechanical Engineering, National Tsing Hua University. He has served as an independent director of TATUNG COMPANY since December 2025. Dr. Yeh served as the Deputy Minister of the Public Construction Commission, Executive Yuan from February 2023 to May 2024. Prior to that, he held the positions of Executive Secretary and Deputy Executive Secretary at the Board of Science and Technology, Executive Yuan (the Cabinet), from July 2016 to February 2023. In his capacity, he brings board-level expertise in telecommunications industry oversight, enterprise risk management, and cybersecurity governance, informed by senior executive roles in both the private sector and Taiwan's Executive Yuan. Dr. Yeh specializes in the research and development of Optical Cross-Connect (OXC) technologies, as well as the planning and promotion of national science and technology policies, including the B5G Mobile Communications Development Strategy and digital transformation initiatives for SMEs in the cloud era (including Tcloud Marketplace). His expertise also encompasses budget

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allocation, government procurement, and information and cybersecurity policy, and he holds a Ph.D. in Electrical Engineering from Cornell University, USA.

**Ching-Feng Hsueh** is an independent director of our company. Mr. Hsueh is currently a practicing attorney at Island Taiwan Law Offices and has over 30 years of legal experience. He also serves as an arbitrator with the Chinese Arbitration Association, Taipei, and as a committee member of the Petition Review Committee under the Public Construction Commission, Executive Yuan. In addition, he concurrently serves as a member of several other government and professional advisory councils. Mr. Hsueh previously served as President of the Taipei Bar Association until November 2018. He specializes in corporate law, intellectual property law, labor law, real estate and construction law, and banking law. His practice also encompasses commercial dispute resolution, arbitration, and contract-related matters, and he holds a degree of L.L.B. from National Taiwan University.

The following persons served as director on our board during 2025 but ceased to serve thereafter due to term expiration or replacement.

**Shin-Yi Chang** was a director of our company. Mr. Chang was the director of the Accounting Department of the MOTC. Prior to that, Mr. Chang had been a lecturer on risk and crisis management at the National Academy of Civil Service of the Examination Yuan from August 2014 to November 2019 and the Executive Secretary of the Internal Control Project Promotion Team of the Ministry of Economic Affairs from February 2011 to January 2017. Mr. Chang specializes in accounting as well as risk and crisis management, and he holds a master's degree in Business Administration from National Taiwan University.

**Sin-Horng Chen** was a director of our company. Dr. Chen was a lifetime chair professor in the Institute of Electrical and Computer Engineering, National Yang Ming Chiao Tung University. Prior to that, Dr. Chen had been the acting President and Vice President of National Chiao Tung University from August 2019 to January 2021 and from February 2015 to July 2019, respectively. Dr. Chen also serves as an independent director of Chinesegamer International Corporation since July 2021. Dr. Chen specializes in advanced technology development and application system development in the areas of information and communication technology, as well as speech signal processing. He holds a Ph.D. degree in Electrical Engineering from Texas Tech University.

**Shih-Hung Tseng** was the labor director of our company. Mr. Tseng was the Vice President of the Enterprise Union at Chunghwa Telecom's Tainan Branch and he also served as an engineer of the Tainan Branch. Mr. Tseng has worked for the Company since June 1979. Mr. Tseng specializes in ICT, and he received an associate degree in Electronic Engineering from Kun Shan Institute of Technology.

**Chia-Chung Chen** was an independent director of our company. Mr. Chen was an independent director of MOSPEC Semiconductor Corp. He also served as an independent director of Dimerco Data System Corporation since June 2020 and a director of SysJust Co., Ltd. since 2023. Prior to that, Mr. Chen served as the chief executive officer in E.SUN Bank (China) Co., Ltd. from March 2015 to April 2019 and as the Chairman in E.SUN Securities Co., Ltd. from June 2009 to January 2012. During his capacity working as the Deputy President of E. Sun Securities, Mr. Chen was responsible for overseeing corporate risk management. Mr. Chen is also our risk management expert with almost 30 years of experience in the banking and financial industry. Mr. Chen specializes in digital finance, strategic planning, operational management, risk management and corporate governance, and he holds a master's degree in Agricultural Economics from National Taiwan University.

**Yu-Fen Lin** was an independent director of our company. Ms. Lin was the co-founder and managing partner of Lex & Honor Law offices. She was a transactional attorney with a board practice in business planning, corporate compliance and finance transactions. Ms. Lin also served as an independent director of Bank SinoPac Co., Ltd. since August 2017, China Airlines Ltd. since May 2024 and Chief Telecom Co. since August 2024, and a supervisor of Infinity Communication Tech. Inc. since 2023. Ms. Lin specializes in particular legal areas, including international investment, corporate investment, financial, banking and electronic payment, risk management, as well as public law, and she holds a double degree of L.L.B. and B.A. from National Taiwan University.

**Chung-Chin Lu** was an independent director of our company. Dr. Lu has been a professor in the Department of Electrical Engineering, National Tsing Hua University since August 2000. Dr. Lu was a director of National Science and Technology Center for Disaster Reduction since July 2020. Dr. Lu has been teaching and researching in

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the areas of communication systems, networks, and information theory for more than 35 years and specializes in digital communications, error-correcting codes, systems bioinformatics, quantum computation, as well as machine learning. Dr. Lu holds a Ph.D. degree in Electrical Engineering from the University of Southern California.

The following table sets forth the name, age and position of each of our executive officers and such person's position as of February 28, 2026. There is no family relationship among any of these persons.

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Wen-Hsin Hsu | 49 | Senior Executive Vice President and Chief Financial Officer |
| Chih-Hsiung Huang | 64 | Senior Executive Vice President  |
| Yuan-Kai Chen | 58 | Senior Executive Vice President  |
| Wen-Chiyh Lin | 59 | Senior Executive Vice President  |
| Hsueh-Hai Hu | 64 | President of Consumer Business Group |
| Pen-Yuang Chang | 64 | President of Enterprise Business Group |
| Chin-Chou Chen | 62 | President of International Business Group |
| Hey-Chyi Young | 60 | President of Information Technology Group |
| Tian-Tsair Su | 63 | President of Telecommunication Laboratories and President of Telecommunication Training Institute |
| Chung-Yung Chia | 62 | President of Network Technology Group |

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**Wen-Hsin Hsu** has served as our Senior Executive Vice President and Chief Financial Officer since September 2024. She has been a professor at the Department of Accounting at National Taiwan University since 2006. She has held independent directorship at Unitech Printed Circuit Board Corp., Ltd. since June 2018, United Microelectronics Co., Ltd. since June 2021 and ANT Precision Industry Co., Ltd. since August 2021. Dr. Hsu holds a Ph.D. degree in Accounting & Financial Management from Lancaster University.

**Chih-Hsiung Huang** has been our Senior Executive Vice President since January 2024. He served as the President of our Network Technology Group from September 2024 to November 2024 and Vice President of our Telecommunication Laboratories from July 2023 to January 2024. Prior to that, Dr. Huang served as the Vice President of our Corporate Planning Department from November 2020 to July 2023 and the Assistant Vice President from June 2017 to November 2020. Dr. Huang holds a Ph.D. degree in Electrical Engineering from National Central University.

**Yuan-Kai Chen** has been our Senior Executive Vice President since February 2026. He is the Vice President of our Investment Department since November 2020. He is also a director of International Integrated System, Inc. since 2020, and also a director of Next Commercial Bank Co., Ltd. since 2021. Mr. Chen holds a Ph.D. degree in Computer Science from National Chiao Tung University.

**Wen-Chiyh Lin** has been our Senior Executive Vice President since November 2024. He was the Vice President of our Business Management Department since December 2020. He is also a director of SENAO International Co., Ltd. since 2023. He served as the Vice President of our Northern Taiwan Business Group from January 2019 to December 2020. Prior to that, he served as the Vice President of our Marketing Department from March 2018 to January 2019. Mr. Lin holds a master's degree in Automatic Control Engineering from Feng Chia University.

**Hsueh-Hai Hu** has been the President of our Consumer Business Group since July 2023. He is also a director of SENAO International Co., Ltd. since 2023. He was the Vice President of our Consumer Business Group from January 2022 to July 2023. Prior to that, he served as the Vice President of our Mobile Business Group from February 2017 to January 2022 and the President of New Taipei Branch from April 2015 to February 2017. Mr. Hu holds a master's degree in Transportation and Communication Management from National Cheng Kung University.

**Pen-Yuang Chang** has been the President of our Enterprise Business Group since July 2023. He is also a director of Chief Telecom Inc. and Kingwaytek Technology Corporation Limited since 2024, and a director of International Integrated Systems, Inc. since 2023. Dr. Chang was the President of Taipei Branch from January 2023 to July 2023. Prior to that, Dr. Chang served as the President of New Taipei Branch from May 2020 to January 2023. Dr. Chang holds Ph.D. degree in Computer Science from National Chiao Tung University.

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**Chin-Chou Chen** has been the President of International Business Group since June 2023. Dr. Chen served as the Vice President of International Business Group from December 2020 to June 2023 and the Deputy Principal Engineer of International Business Group from December 2017 to December 2020. Dr. Chen holds Ph.D. degree in Electrical Engineering from National Taiwan University.

**Hey-Chyi Young** has been the President of our Information Technology Group since August 2023. Ms. Young is also a director of International Integrated Systems, Inc. since 2023. She was the Vice President of our Telecommunication Laboratories from November 2017 to August 2023. Prior to that, Ms. Young served as the Managing Director of our Network Management Laboratory from January 2013 to November 2017. Ms. Young holds a master's degree in Electrical and Computer Engineering from The University of Texas at Austin.

**Tian-Tsair Su** has been the President of our Telecommunication Laboratories since July 2023, and the President of our Telecommunication Training Institute since December 2025. Mr. Su is also a director of Senao Networks Inc. since 2022. He served as the President of Consumer Business Group from January 2022 to July 2023. Mr. Su was the Chairman of Honghwa International Co., Ltd. from August 2019 to January 2022. Prior to that, Mr. Su served as the Senior Executive Vice President of our Administration Department from November 2017 to August 2019. Mr. Su holds a master's degree in Electrical Engineering from National Cheng Kung University.

**Chung-Yung Chia** has been the President of our Network Technology Group since November 2024. He is also a director of SENAO International Co., Ltd. since 2025, and a director of Senao Networks Inc. since 2024. He served as the Vice President of our Network Technology Group from January 2022 to November 2024. Prior to that, Dr. Chia served as the Vice President of our Mobile Business Group from July 2021 to January 2022 and the Assistant Vice President from August 2019 to July 2021. Dr. Chia holds a Ph.D. degree in Institute of Computer Science and Engineering from National Chiao Tung University.

The following person served as our executive officer in 2025 before the conclusion of secondment or retirement.

**Wei-Kuo Hong** has been the Chairman of Chunghwa Precision Test Tech. Co., Ltd. He was our Senior Executive Vice President since November 2024, and the President of Telecommunication Training Institute since November 2018 to December 2025. He served as the Senior Executive Vice President from June 2020 to July 2023. Prior to that, Dr. Hong served as the Vice President of our Telecommunication Training Institute from May 2017 to November 2018 and the Assistant Vice President of our Investment Department from May 2012 to May 2017. Dr. Hong holds a Ph.D. degree in Industrial Administration from National Tsing Hua University.

**B. Compensation** 

The board of directors has set up a compensation committee to be responsible for drafting, approving and periodically reviewing the compensation proposals for the directors and managers. See "C. Board Practices" for a discussion of our compensation committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the chairman of our board of directors may receive a fixed monthly income of NT$394,280 and a non-fixed income, including but not limited to performance-related bonuses or other rewards, which may not exceed his fixed income. The chairman will not receive any additional compensation for his role as a director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our president may receive a fixed monthly income of NT$385,520 and a non-fixed income, including but not limited to performance-related bonuses or other rewards, which may not exceed his fixed income. The president will not receive any additional compensation for his role as a director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•independent directors who concurrently serve in military, public office or hold teaching or administrative post may receive a fixed monthly compensation of NT$8,000, and those who do not concurrently serve in military or public office or hold teaching or administrative post may receive a monthly compensation of NT$60,000; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•directors who serve in military, public office or hold teaching or administrative post may receive a monthly compensation of NT$8,500, and those directors who do not serve in military and public office or hold teaching or administrative post may receive a monthly compensation of NT$30,000.

Our Chairman and Chief Executive Officer, Dr. Chih-Cheng Chien, and our President, Dr. Rong-Shy Lin, and our labor director Shiow-Long Horng, to our board of directors, respectively, do not receive monthly compensation for acting as our directors because they receive salaries as employees.

The aggregate amount of compensation to our directors and executive officers in 2023, 2024 and 2025 was NT$155,144,230, NT$163,757,680 and NT$132,045,136 (US$4,209,280.7), respectively. The aggregate amount of compensation in 2025 includes a NT$72,140,792 (US$2,299,674.6) salary payment for directors and executive officers, a NT$10,491,280 (US$334,436.7) pension payment for executive officers, a NT$42,133,064 (US$1,343,100.5) bonus accrued for directors and a NT$7,280,000 (US$232,068.9) bonus accrued for executive officers. See "Item 10. Additional Information—B. Memorandum and Articles of Association—Dividends and Distributions" for a discussion of the distribution of bonuses and earnings.

All of our non-independent directors are legal representatives of the MOTC. The bonus in the amount of NT$40,440,113 (US$1,289,133.3) was paid directly to the MOTC in 2025 because such earnings distributions are not the individual income of these directors. Independent directors will not receive any earnings distributions.

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***Compensation Paid to Directors***

Pursuant to ROC disclosure rules, we have disclosed the compensation of our directors for the fiscal year ended December 31, 2025 as follows, excluding bonus accrued for legal entity the MOTC:

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| | | |
|:---|:---|:---|
| **Directors** | **Total Compensation (in millions)** | **Total Compensation (in millions)** |
|  | NT$ | US$ |
| Chih-Cheng Chien<sup>(1)</sup> | 9.2 | 0.3 |
| Chi-Hwa Chern<sup>(2)</sup> | 0.0 | 0.0 |
| Rong-Shy Lin<sup>(3)</sup> | 9.0 | 0.3 |
| I-Jen Su<sup>(4)</sup> | 0.2 | 0.0 |
| Shin-Yi Chang<sup>(5)</sup> | 0.1 | 0.0 |
| Sin-Horng Chen<sup>(6)</sup> | 0.2 | 0.0 |
| Sheng-Yuan Wu | 0.1 | 0.0 |
| Shiow-Long Horng<sup>(7)</sup> | 1.0-2.0 | 0.0-0.1 |
| Ching-Hwi Lee<sup>(8)</sup> | 0.1 | 0.0 |
| Li-Feng Chien | 0.4 | 0.0 |
| Ikujin Ko<sup>(9)</sup> | 0.5 | 0.0 |
| Shih-Hung Tseng<sup>(10)</sup> | 0.5 | 0.0 |
| Yu-Fen Lin<sup>(11)</sup> | 0.4 | 0.0 |
| Chung-Chin Lu <sup>(12)</sup> | 0.4 | 0.0 |
| Yi-Chin Tu | 0.9 | 0.0 |
| Chia-Chung Chen<sup>(13)</sup> | 0.5 | 0.0 |
| Su-Ming Lin | 1.0 | 0.0 |
| Ching-Feng Hsueh<sup>(14)</sup> | 0.6 | 0.0 |
| Jer-Liang Yeh<sup>(15)</sup> | 0.6 | 0.0 |

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(1)As salary for serving as our Chief Executive Officer.

(2)Mr. Chern succeeded on August 8, 2025.

(3)As salary for serving as our President.

(4)Mr. Su was elected on May 29, 2025.

(5)Mr. Chang was no longer serving with us after July 16, 2025, and his salary included salary for serving as our director before that date.

(6)Dr. Chen was no longer serving with us after May 29, 2025, and his salary included salary for serving as our director before that date.

(7)Mr. Horng succeeded on March 11, 2025.

(8)Ms. Lee succeeded on June 5, 2025.

(9)Mr. Ko was elected on May 29, 2025.

(10)Mr. Tseng was no longer serving with us after March 11, 2025, and his salary included serving as our director before that date.

(11)Ms. Lin was no longer serving with us after May 29, 2025, and her salary included serving as our director before that date.

(12)Dr. Lu was no longer serving with us after May 29, 2025, and Dr. Lu's salary included serving as our director before that date.

(13)Mr. Chen was no longer serving with us after May 29, 2025, and his salary included serving as our director before that date.

(14)Mr. Hsueh was elected on May 29, 2025.

(15)Dr. Yeh was elected on May 29, 2025.

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***Compensation Paid to Senior Management*** 

Pursuant to ROC disclosure rules, we have disclosed the compensation range of our senior management for the fiscal year ended December 31, 2025 as follows, excluding bonus accrued for legal entity the MOTC:

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| | |
|:---|:---|
| **Total Compensation** | **Senior Management** |
| Below NT$1,000,000 |  |
| NT$1,000,000 (inclusive) to NT$2,000,000 (exclusive) |  |
| NT$2,000,000 (inclusive) to NT$3,500,000 (exclusive) |  |
| NT$3,500,000 (inclusive) to NT$4,999,999 (exclusive) | Wen-Hsin Hsu |
| NT$5,000,000 (inclusive) to NT$9,999,999 (exclusive) | Rong-Shy Lin, Wen-Chiyh Lin,<br>Chih-Hsiung Huang, Hsueh-Hai Hu,<br> Pen-Yuang Chang, Chin-Chou Chen,<br> Chung-Yung Chia, Hey-Chyi Young,<br> Tian-Tsair Su |
| NT$10,000,000 (inclusive) to NT$14,999,999 (exclusive) |  |
| NT$15,000,000 (inclusive) to NT$30,000,000 (exclusive) | Wei-Kuo Hong |
| NT$30,000,000 (inclusive) to NT$50,000,000 (exclusive) |  |
| NT$50,000,000 (inclusive) to NT$100,000,000 (exclusive) |  |
| Above NT$100,000,000 |  |
| Total | 11 people |

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The compensation committee shall periodically review and assess compensation packages for the board of directors and executive management, which are then approved by the board of directors.

The compensation of the senior executives is linked to various KPI assessments, such as corporate performance, subordinate unit performance and personal performance, along with ESG outputs as an additional reference point for variable compensation.

We accrued NT$5,154,611 (US$164,317) pension expense for executive officers mentioned above in 2025. See "Item 5. Operating and Financial Review and Prospects—Overview—Personnel expenses" and Note 29 to our consolidated financial statements included elsewhere in this annual report for descriptions about our pension plans. We do not have any service contracts with any directors providing for any benefits upon termination of employment.

**C. Board Practices**

We currently have 13 directors, including five independent directors. With the exceptions of Director Ching-Hwi Lee and Director Chi-Hwa Chern, who assumed the directorship on June 5 and August 8, 2025, respectively, all other directors were elected on May 29, 2025. The term of all our directors is until May 28, 2028. Pursuant to the ROC Company Act, the directors may be removed from office at any time by a resolution adopted at a stockholders' meeting. The chairman of our board of directors is elected by our directors. Our chairman presides at all meetings of our board of directors and also has the authority to act as our representative. We have not entered into any contract with any of our directors by which our directors are expected to receive benefits upon termination of their employment.

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Our Articles of Incorporation provide for a board of directors consisting of seven to fifteen directors, one-fifth of whom shall be expert representatives. Pursuant to the ROC Company Act, the ROC Securities and Exchange Act and Article 12-1 of our Articles of Incorporation provide for the election of, starting from the fifth commencement of the board of directors, at least three independent directors out of the 7-to-15-member board. The term "independent director" may have a different meaning when used in Taiwan than in other jurisdictions. We have used a nominating process, with the stockholders choosing the directors, including independent directors from the list of nominees. With respect to certain material decisions to be made by our board of directors as specified in the ROC Securities and Exchange Act, the Business Mergers and Acquisitions Act and other relevant laws and regulations, including the adoption or amendment to our internal control system, material loans or guarantees, the issuance of equity-type securities, matters in which directors have personal interests, the appointment and discharge of auditors, approval of financial reports, the appointment and discharge of financial, accounting or internal auditing officers and other matters prescribed by the ROC FSC or other relevant competent authorities, the dissenting opinion or qualified opinion of an independent director is required to be noted in the minutes of the board of directors' meeting and disclosed on the website maintained by the TWSE.

Our audit committee was established in September 2004 in accordance with the rules set forth in the NYSE Listed Company Manual, and was comprised of three independent directors. See "Item 16G. Corporate Governance—Audit Committee." Starting from the date of the annual general meeting in June 2013, we have established a new audit committee that replaces our supervisors and our old audit committee in accordance with Paragraph 1, Article 14-4 of the ROC Securities and Exchange Act and our Articles of Incorporation, and as a result, we simultaneously comply with the relevant rules of the NYSE Listed Company Manual and the relevant rules and regulations in the ROC. Accordingly, our audit committee is currently composed of all independent directors, namely Su-Ming Lin, Yi-Chin Tu, IKujin Ko, Ching-Feng Hsueh and Jer-Liang Yeh to be the members of the audit committee.

Under the ROC Company Act, a person may serve as our director in his personal capacity or as the representative of another legal entity. A director who serves as the representative of a legal entity may be removed or replaced at any time at the discretion of that legal entity, and the replacement director may serve the remainder of the term of office of the replaced director. Except for our five independent directors, all of our directors are representatives of the MOTC.

The business address of our directors and executive officers is the same as our registered address.

Our audit committee approves and handles following items: (i) adoption or amendment of internal control system in accordance to Article 14-1 of the Securities and Exchange Act; (ii) assessment of the effectiveness of the internal control system; (iii) adoption or amendment of procedures for handling financial or business activities of a material nature, such as acquisition or disposal of assets, derivatives trading, loaning of funds to others, and endorsements or guarantees of others, pursuant to Article 36-1 of the Securities and Exchange Act; (iv) conflicts of interest on behalf of the directors; (v) material asset or derivatives transactions; (vi) material monetary loans, endorsements, or provisions of guarantee; (vii) the offering, issuance, or private placement of any equity-type securities; (viii) the hiring or dismissal of a CPA, or the compensation given thereto; (ix) the appointment or discharge of a financial, accounting, or internal auditing supervisor; (x) annual financial reports; (xi) the matters regulated by the Business Mergers and Acquisitions Act; (xii) the first to the third quarter financial reports; (xiii) communications and discussions with CPAs; (xiv) resolutions of potential differences of opinions between Company management and CPAs; (xv) discussing and reporting other financial information and required disclosures under the U.S. Securities Exchange Act between Company management and CPAs; (xvi) approving the CPA firm's annual audit and non-audit services; and (xvii) any other material matter so required by the Company or relevant authorities. Our board of directors has concluded that Su-Ming Lin is our audit committee financial expert.

Additionally, we have the sustainable development and strategy committee (renamed from the corporate strategy committee on August 9, 2023). Our sustainable development and strategy committee may comprise five to nine directors. Currently, there are nine directors on the committee. It is responsible for reviewing and advising on our: (i) mid- to long-term goals and strategies (including sustainable development); (ii) sustainable development policies and management approach establishment; (iii) review of the sustainability report; (iv) major investments and mergers and acquisitions; (v) a major reorganization of our company; (vi) application or return of business license; (vii) annual operating plan and budget compilation and revision; (viii) capital increase or decrease; and (ix)

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other major strategic issues that may affect our development. Conclusions made by the sustainable development and strategy committee are considered at a subsequent board of directors meeting.

Article 14-6 of the ROC Securities and Exchange Act requires all listed companies to establish a compensation committee for directors, supervisors, and managers' compensation, which includes salary, stock options and other rewards, as well as authorizes the FSC to enact a regulation on the authorities of the compensation committee and the qualifications of its members. Accordingly, our compensation committee is composed of three independent directors (Su-Ming Lin, Ching-Feng Hsueh, and Jer-Liang Yeh) and is responsible for (i) stipulating and periodically reviewing the performance of the directors and managers, as well as the policy, system, standard, and structure of salary and compensation; and (ii) periodically reviewing and stipulating the salary and compensation of the directors and managers. The proposals of the compensation committee should be presented to the board of directors for discussion. See "Item 10. Additional Information—B. Memorandum and Articles of Association—Directors and Audit Committee."

On August 9, 2023, our board of directors approved the establishment of the risk management committee to strengthen the functions of the board and the risk management mechanism. The committee is composed of three to seven directors. Currently, there are five directors on the committee, with more than half of the members being independent directors of the company. The responsibilities of the committee are as follows: (i) to review risk management policies, procedures and framework, and periodically review their applicability and effectiveness; (ii) to approve risk appetite (risk tolerance) and guide the resource allocation; (iii) to ensure that the risk management mechanism can adequately address the risks faced by the company and integrate them into routine operational processes; (iv) to approve the prioritization and risk levels for risk control and management; (v) to review the implementation of risk management, propose improvements recommendations, and report to the board of directors regularly (at least once a year); and (vi) to execute the risk management decisions made by the board of directors. Conclusions made by the risk management committee will be considered at a subsequent board of directors meeting. Our risk management committee also engages with governance on information security and cybersecurity issues. See "Item 16K. Cybersecurity."

On November 7, 2025, our board of directors approved the establishment of the nomination committee to enhance the functioning of the board, strengthen governance mechanisms, and improve the procedures for the election of directors (including independent directors). The committee shall be composed of at least three directors. The committee currently consists of three directors, the majority of whom are independent directors of the company, and an independent director serves as the convener and chairperson of the committee. The scope of the duties of the committee are as follows: (i) plan the number of board members and establish standards for diversity and independence, including expertise, skills, experience, gender, and other relevant qualifications, and shall identify, review, and nominate director candidates based on such standards; (ii) periodically conduct and review performance evaluations of the Board and functional committees, and disclose the evaluation methods and results; (iii) propose and recommend education programs for directors; (iv) review the proposed amendments to the Code of Corporate Governance for the company and Regulations Governing the Performance Evaluation of the Board of Directors of the company; and (v) any other matters as instructed by the board. All the recommendations made by the nomination committee shall be submit to the board for discussion.

In November 2003, the SEC approved changes to the NYSE's listing standards related to the corporate governance practices of listed companies. Under these rules, listed foreign private issuers, like us, must disclose any significant ways in which their corporate governance practices differ from those followed by NYSE-listed non-foreign private issuers under the NYSE's listing standards. See "Item 16G. Corporate Governance." A copy of the significant differences between our corporate governance practices and NYSE corporate governance rules applicable to non-foreign private issuers is also available on our website at http://www.cht.com.tw. The information contained on our website is not a part of this annual report.

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**D. Employees** 

As of December 31, 2025, we had 32,606 employees on a consolidated basis. Approximately 99% of our employees were based in the ROC. The following table is a breakdown of our employees from 2023 to 2025 on a consolidated basis.

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| | | | |
|:---|:---|:---|:---|
|  | **2023** | **2024** | **2025** |
| **Employees** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Technical | 16756 | 16778 | 16963 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations | 13665 | 13695 | 13597 |
| &nbsp;&nbsp;&nbsp;&nbsp;Administrative | 1962 | 1979 | 2046 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 32383 | 32452 | 32606 |

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The following table is a breakdown of our employees of Chunghwa Telecom Co., Ltd. from 2023 to 2025.

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| | | | |
|:---|:---|:---|:---|
|  | **2023** | **2024** | **2025** |
| **Employees** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Technical | 11725 | 11873 | 12084 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operations | 6963 | 6966 | 7077 |
| &nbsp;&nbsp;&nbsp;&nbsp;Administrative<sup>(1)</sup> | 1234 | 1257 | 1282 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | 19922 | 20096 | 20443 |

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(1)Included directors of Chunghwa Telecom Co., Ltd. in accordance with the ROC requirements.

As of December 31, 2025, approximately 86.0% of our employees of Chunghwa Telecom Co., Ltd. had bachelor, master or doctoral degrees.

As of December 31, 2025, approximately 99.8% of our employees on a non-consolidated basis were members of our principal labor union. Our collective agreement sets forth work rules, grievance procedures and provides for union participation in performance evaluations and promotion decisions. Our union members also occupy a majority of the seats on our employee welfare and pension fund committees. We will continue to maintain a good relationship with our labor unions. We strive to have good communication with our employees and the labor unions by inviting representatives of our labor unions to attend various meetings related to the performance of our employees.

Pursuant to our Articles of Incorporation, our employees are entitled to 2% to 5% of the distributable earnings as employee compensation. Our practice in the past to determine the amount of the compensation has been based on the operating results. In the third quarter of 2025, we distributed compensation to our employees of NT$1.9 billion (US$61.6 million).

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**E. Share Ownership** 

As of March 18, 2026, our directors and executive officers personally held an aggregate of 945,804 shares of our common shares, representing around 0.012% of our outstanding common shares. The following table sets forth information with respect to the beneficial ownership of our common shares as of March 18, 2026 by each of our directors and executive officers.

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| | | |
|:---|:---|:---|
| **Name** | **Number** | **%** |
| Chih-Cheng Chien | 87136 | \* |
| Rong-Shy Lin | 105105 | \* |
| Sheng-Yuan Wu |  |  |
| Ching-Hwi Lee |  |  |
| Chi-Hwa Chern |  |  |
| Li-Feng Chien |  |  |
| I-Jen Su |  |  |
| Shiow-Long Horng | 75136 | \* |
| Su-Ming Lin |  |  |
| Yi-Chin Tu |  |  |
| Ikujin Ko |  |  |
| Ching-Feng Hsueh |  |  |
| Jer-Liang Yeh |  |  |
| Wen-Hsin Hsu | 1305 | \* |
| Chih-Hsiung Huang | 63259 | \* |
| Yuan-Kai Chen | 67714 | \* |
| Wen-Chiyh Lin |  |  |
| Hsueh-Hai Hu | 88778 | \* |
| Pen-Yuang Chang | 62482 | \* |
| Chin-Chou Chen | 70062 | \* |
| Hey-Chyi Young | 165546 | \* |
| Tian-Tsair Su | 98227 | \* |
| Chung-Yung Chia | 61053 | \* |

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\* Stockholder beneficially owns less than 1.0% of our outstanding common shares.

\*\* The shareholdings of our directors and executive officers presented for periods prior to the current fiscal year aligned with those disclosed in our annual reports for shareholder meetings in Taiwan pursuant to the R.O.C. rules and regulations. Beginning from the current fiscal year, the shareholding disclosures of our directors and executive officers are prepared in accordance with Section 16(a) of the Exchange Act, as required under the Holding Foreign Insiders Accountable Act, which differs from the disclosure basis applied in prior years under applicable R.O.C. regulations.

**Employee Stock Subscription Program** 

Under our Articles of Incorporation, we must reserve up to 10% to 15% of any new shares for subscription by our employees whenever we issue new shares for cash, unless otherwise approved by the central competent authority.

In 2020, our consolidated subsidiary, CHIEF, which has been a public company since November 17, 2015, granted stock options to its employees entitling them to purchase common stock of CHIEF. As of December 31, 2023 and 2024, participants in CHIEF's stock incentive plan had outstanding stock options to purchase 0.1 million and 7 thousand common shares of CHIEF, respectively. As of December 31, 2025, there were no outstanding stock options.

CHTSC, another consolidated subsidiary of ours and has been a public company since September 8, 2025, granted its employees the right to subscribe to new shares reserved for employees under cash injection in 2025.

In 2019 and 2021, CHTSC granted stock options to its employees to purchase common stock of CHTSC. As of December 31, 2023, 2024 and 2025, participants in CHTSC's incentive plan had outstanding stock options to purchase 1.6 million, 0.7 million and 2 thousand common shares of CHTSC, respectively.

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In 2021, 2022, 2023 and 2025, CLPT, another consolidated subsidiary of ours, granted stock options to its employees entitling them to purchase common stock of CLPT. As of December 31, 2023 and 2024, participants in CLPT's stock incentive plan had outstanding stock options to purchase 1.6 million and 1.0 million common shares of CLPT, respectively. As of December 31, 2025, there were no outstanding stock options.

IISI, another consolidated subsidiary of ours and has been a public company since November 25, 2025, granted its employees the right to subscribe to new shares reserved for employees under cash injection in 2025.

See Note 35 to our consolidated financial statements, included elsewhere in this annual report, for additional details regarding share-based payment arrangements of CHIEF, CHTSC, CLPT and IISI.

**F. Disclosure of a Registrant's Action to Recover Erroneously Awarded Compensation**

Not applicable.

**ITEM 7. MAJOR STOCKHOLDERS AND RELATED PARTY TRANSACTIONS**

**A. Major Stockholders** 

The following table sets forth information known to us with respect to the beneficial ownership of our shares (i) as of February 28, 2026, the most recent practicable date and (ii) as of certain book closure dates in each of the preceding three years, for the stockholders known by us to own at least 5.0% of our outstanding common shares. Beneficial ownership is determined in accordance with the SEC's rules.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **As of March 31, 2023** | **As of March 31, 2023** | **As of March 31, 2024** | **As of March 31, 2024** | **As of March 31, 2025** | **As of March 31, 2025** | **As of February 28, 2026** | **As of February 28, 2026** |
| **Name** | **number** | **%** | **number** | **%** | **number** | **%** | **number** | **%** |
| The ROC government<sup>(1)(2)</sup> | 3320526730 | 42.80 | 3321563943 | 42.82 | 3147298365 | 40.57 | 3161605977 | 40.76 |
| &nbsp;&nbsp;The MOTC | 2737718976 | 35.29 | 2737718976 | 35.29 | 2737718976 | 35.29 | 2737718976 | 35.29 |
| Shin Kong Life Insurance<br> Co., Ltd<sup>(2)</sup> | 428647184 | 5.53 | 383811184 | 4.95 | 358083184 | 4.62 | 289255184 | 3.73 |

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(1)Includes shares held through the MOTC and other government-controlled entities.

(2)Information as of July 3, 2022, July 2, 2023, July 8, 2024 and July 7, 2025, the latest book closure date, which were the most recent practicable dates for us to obtain complete ownership information.

As of February 28, 2026, 28 record holders held 18,323,458 ADSs (each representing ten common shares), which represents approximately 2.4% of our total outstanding common shares. Because many of these ADSs were held by brokers or other nominees, we cannot ascertain the exact number of beneficial shareholders with addresses in the U.S.

None of our shareholders has different voting rights from other shareholders. See "Item 10. Additional Information—B. Memorandum and Articles of Association—Voting Rights." We are not aware of any arrangement that may, at a subsequent date, result in a change of control of our company.

**B. Related Party Transactions** 

We have not extended any loans or credit to any of our directors or executive officers, and we have not provided guarantees for borrowings by any of these persons. We have not entered into any fee-paying contracts with any of these persons for them to provide services not within his or her capacity as a director or executive officer of our company, except that three of our directors who are also our employees receive salaries from our company in their capacity as our employees.

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Please refer to "Item 4. Information on the Company—A. History and Development of the Company" for a discussion of our alliances, acquisitions and investments. Please refer to Notes 3, 15, 16 and 40 to our consolidated financial statements included elsewhere in this annual report for descriptions of Chunghwa's subsidiaries, investments accounted for using equity method, and related party transactions.

On April 1, 2007, Chunghwa entered into an agreement with SENAO making SENAO the exclusive distributor of mobile handsets to Chunghwa's retail outlets. Under the terms of the agreement, SENAO also provides mobile handset sales services in Chunghwa's retail outlets, exclusively sells Chunghwa's SIM cards in SENAO's own retail stores, and gets commission, subsidies of handset sold and warranties from Chunghwa. For the year ended December 31, 2025, SENAO received NT$8.3 billion (US$0.3 billion) from Chunghwa. Chunghwa also sells mobile handsets to SENAO. For the year ended December 31, 2025, Chunghwa sold mobile handsets to SENAO, which amounted to NT$4.7 billion (US$0.1 billion).

Honghwa contracted with Chunghwa to provide on-site sales services in Chunghwa's retail stores and on-site equipment installation services to Chunghwa's customers. Chunghwa paid Honghwa approximately NT$7.7 billion (US$0.2 billion) in 2025 for these services.

Chunghwa acquired network equipment and related supplies from Chunghwa System Integration for approximately NT$1.9 billion (US$0.1 billion) in 2025.

Terms and conditions 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 and conditions were determined in accordance with mutual agreements.

**C. Interests of Experts and Counsel** 

Not applicable.

**ITEM 8. FINANCIAL INFORMATION**

**A. Consolidated Statements and Other Financial Information**

See Item 18 for a list of all consolidated financial statements filed as part of this annual report on Form 20-F.

We are not currently involved in material litigation or other proceedings that may have or have had in the recent past, significant effects on our financial position or profitability. See "Item 4. Information on the Company—B. Business Overview—Legal Proceedings."

For our policy on dividend distributions, see "Item 10. Additional Information—B. Memorandum and Articles of Association—Dividends and Distributions." The following table sets forth the dividends declared on each of our common shares and in the aggregate for each of the years from 2021 to 2025. All of these dividends were paid, in the fiscal year following the period with respect to which the dividends relate.

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| | | |
|:---|:---|:---|
|  | **Dividends Per<br>Common Share**<sup>(1)</sup> | **Total<br>Dividends**<sup>(1)</sup> |
|  | **NT$** | **NT$ in billions** |
| Year ended December 31, 2021 | 4.6080 | 35.7 |
| Year ended December 31, 2022 | 4.7020 | 36.5 |
| Year ended December 31, 2023 | 4.7580 | 36.9 |
| Year ended December 31, 2024 | 5.0000 | 38.8 |
| Year ended December 31, 2025<sup>(2)</sup> | 5.2000 | 40.3 |

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(1)Cash dividend unless otherwise indicated.

(2)Dividends for 2025, which are calculated based on Taiwan IFRSs, were approved by the board of directors in February 2026 and to be declared at our annual general stockholders' meeting scheduled on May 29, 2026. Our payout ratio was 104.20% in 2025.

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We commit to maximizing stockholder value and intend to maintain a sustainable dividend policy, subject to a number of commercial factors, including the interests of our stockholders, cash requirements for future capital expenditures and investments, as well as relevant industry and market practice. The amount of our net income determined for purposes of calculating our annual dividend payout will be calculated based on Taiwan IFRSs, which may differ from the amount of our net income determined in accordance with IFRSs.

**B. Significant Changes**

Other than as disclosed elsewhere in this annual report, we have not experienced any significant changes since the date of the annual consolidated financial statements included in this annual report.

**ITEM 9. THE OFFER AND LISTING** 

**A. Offer and Listing Details**

**Market Price Information for Our Common Shares**

Our common shares have been listed on the TWSE under the number "2412" since October 27, 2000. There is no public market outside Taiwan for our common shares. The closing price for our common shares on the TWSE on April 1, 2026 was NT$134 per share.

**Market Price Information for Our American Depositary Shares** 

Our ADSs have been listed on the NYSE under the symbol "CHT" since July 17, 2003. The outstanding ADSs are identified by the CUSIP number 17133Q502. The closing price for our ADSs on the NYSE on April 1, 2026 was US$42.39 per ADS. Each of our ADSs represents the right to receive ten shares.

As of April 1, 2026, a total of 18,485,793 ADSs and 7,757,446,545 common shares (including those represented by ADSs) were outstanding. With certain limited exceptions, holders of shares that are not ROC persons are required to hold these shares through a brokerage or custodial account in the ROC.

**B. Plan of Distribution** 

Not applicable.

**C. Markets**

The principal trading market for our common shares is the TWSE and the principal trading market for our ADSs is the NYSE.

**D. Selling Shareholders**

Not applicable.

**E. Dilution**

Not applicable.

**F. Expenses of the Issue** 

Not applicable.

**ITEM 10. ADDITIONAL INFORMATION**

**A. Share Capital**

Not applicable.

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**B. Memorandum and Articles of Association**

*Set forth below is information relating to our capital structure, including brief summaries of material provisions of our Articles of Incorporation, the ROC Securities and Exchange Law, the ROC Company Act, and the Telecommunications Management Act, all as currently in effect. The following summaries are qualified in their entirety by reference to our Articles of Incorporation, the ROC Securities and Exchange Law, the ROC Company Act, and the Telecommunications Management Act.*

**Objects and Purpose**

The scope of business of Chunghwa Telecom Co., Ltd. as set forth in Article 2 of our Articles of Incorporation, includes (i) telecommunications enterprises, (ii) installation of the computer equipment and radio-frequency equipment whose operation is controlled by the telecommunication business, (iii) telecommunications equipment wholesale, retail and engineering businesses, (iv) engineering and operation of information software and information process service businesses, (v) apparatus and electric appliance installation and construction business, (vi) television program production, distribution and commercial business, (vii) broadcasting program distribution and commercial business, (viii) the third party payment business, (ix) water pipe construction business, (x) machinery and equipment manufacturing business, (xi) traffic signal installation and construction, and traffic labels construction business, (xii) medical device wholesale and retail business, and (xiii) other businesses, except any business requiring a special permit or otherwise restricted by law or regulation.

**General**

Under our Articles of Incorporation, our authorized capital was NT$120,000,000,000 divided into 12,000,000,000 common shares, with a par value of NT$10 per share. We have set aside 200,000,000 common shares from the aforementioned common shares for the exercise of any future issuances of stock warrants, preferred shares with warrants, and bonds with warrants. Our paid-in capital is NT$77,574,465,450 divided into 7,757,446,545 common shares. We currently do not have any other equity in the form of preferred shares, bonds or otherwise outstanding as of the date of this annual report.

The MOTC, on behalf of the government of the ROC, owned approximately 35.29% of our outstanding common shares as of December 31, 2025.

**Directors and Audit Committee**

Our Articles of Incorporation provide for a board of directors consisting of seven to fifteen directors, and one-fifth of these directors shall be professionals of domain knowledge. See "Item 6. Directors, Senior Management and Employees—C. Board Practices." Pursuant to the ROC Securities and Exchange Act, for a company that has established an audit committee, unless otherwise provided for by law, the provisions regarding supervisors in the ROC Securities and Exchange Act, the ROC Company Act, and other laws and regulations shall apply mutatis mutandis to the audit committee.

Under the ROC Company Act, our board of directors, in conducting our business, shall act in accordance with laws and regulations, our Articles of Incorporation and the resolutions adopted at the meetings of our stockholders. Where any resolution adopted by our board of directors contravenes laws, our Articles of Incorporation and the resolutions adopted at the meetings of our stockholders, thereby causing loss or damage to us, all directors taking part in the adoption of such resolution shall be liable to compensate us for such loss or damage; however, those directors whose disagreement appears on record or is expressed in writing shall be exempted from liability.

If our board of directors decides, by resolution, to commit any act in violation of any law or our Articles of Incorporation, any of our independent directors or any stockholder who has continuously held our shares for a period of one year or longer may request our board of directors to discontinue such act. One or more stockholders who have held 1% or more of the total number of our outstanding shares for six months or a longer time may send a written request to require an independent director to bring an action on our behalf against a director for losses suffered by us as a result of unlawful actions. In addition, if our stockholders' meeting resolves to institute an action against a director, we shall, within 30 days from the date of such resolution, institute the action. In case of a lawsuit

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between us and a director, an independent director shall act on our behalf, unless otherwise provided by law; and our stockholders meeting may also appoint some other person to act on our behalf in a lawsuit.

According to the ROC Company Act, our board of directors owes fiduciary duty to us. Our directors are liable for the damages to be sustained by us if they breach their fiduciary duty. In addition, if a director, his or her spouse, his or her blood relative within second degree of kinship, or any company which has a controlling or subordinate relation with him or her, have a personal interest in a matter to be discussed at the meeting of the board of directors, the director shall specify such conflict; if the conflict may cause damages to our company, the director shall abstain from voting on the matter, and shall not serve as a proxy and vote on behalf of another director.

According to our Articles of Incorporation, the remuneration and compensation of the directors shall be determined by the board of directors based on the participation and the contribution of each director in the business operation of our company and referencing the regular standards of other corporations in the similar industry. Our Articles of Incorporation do not impose a mandatory retirement age for our directors. Furthermore, our Articles of Incorporation do not impose a shareholding qualification for each director. According to our Code of Ethics, we may not extend any loans to our directors.

**Dividends and Distributions**

At each annual general stockholders' meeting, our board of directors submits to the stockholders for their approval any proposal for the distribution of dividends or the making of any other distribution to stockholders from our net income for the preceding fiscal year. All common shares outstanding and fully paid as of the relevant record date are entitled to share equally in any dividend or other distribution so approved. Dividends may be distributed in cash, in the form of common shares or a combination of the two, as determined by the stockholders at the meeting.

We are not permitted to distribute dividends or make other distributions to stockholders in any year in which we do not have any net income or unappropriated earnings (excluding reserves). The ROC Company Act also requires that 10% of our annual net income, less prior years' losses and outstanding tax, if any, be set aside as a legal reserve until the accumulated legal reserve equals our paid-in capital. We may also set aside special reserve by the resolution of our stockholders' meeting. In addition, our Articles of Incorporation provide that at least 50% of the remaining portion of the net income, less accumulated losses, outstanding taxes, the legal reserve and any special reserve, plus accumulated retained earnings from prior years will be distributed as dividends to stockholders. Under our Articles of Incorporation, not less than 50% of the total amount of the distributed dividends must be in cash, but if the cash dividends to be distributed are less than NT$0.10 per share, the dividends may be distributed in the form of shares. The actual percentage of distribution would take actual profitability of the year, capital budgeting, and status of finance into consideration, and would be executed following a resolution of shareholders' meeting.

Pursuant to our current Articles of Incorporation, in annual profit-making year, we should distribute 2% to 5% of profit as employees' compensation, of which at least 20% should be allocated to grassroots employees, and not more than 0.17% of profit should be distributed as directors' compensation; however, if we have any accumulated losses, an amount to offset losses should be reserved in advance. The provision regarding grassroots employees' compensation shall take effect from the fiscal year of 2025.

Under the ROC Company Act, if we do not incur a loss, we are permitted to make distributions on a pro rata basis to our stockholders of additional common shares or cash by the legal reserve, the premium derived from the issuance of new shares and the income from endowments received by us. We are allowed to make the above distributions to our stockholders by legal reserve only if the legal reserve exceeds 25% of our paid-in capital. Furthermore, subject to the provision under our Articles of Incorporation, such distribution should firstly be made by the premium derived from the issuance of new shares.

**Changes in Share Capital**

Under the ROC Company Act, any change in our authorized share capital requires an amendment to our Articles of Incorporation, which in turn requires approval at our stockholders' meeting. Authorized but unissued common shares may be issued, subject to applicable ROC law, upon terms as our board of directors may determine.

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**Preemptive Rights**

Under the ROC Company Act and our Articles of Incorporation, when we issue new shares for cash, unless otherwise approved by the central competent authority, our employees have rights to subscribe for between 10% and 15% of the new issue, and we have rights to restrain the shares subscribed by employees from being transferred within a specific period of time, which should not be longer than two years. Except for the shares reserved in accordance with the ROC Company Act, we are required to inform our existing shareholders of their rights to subscribe for additional shares pro rata to their respective shareholding and to note that the shareholders will lose their pre-emptive right if they fail to subscribe for the new shares within the prescribed period. In the event that there is any new share that has not been subscribed for by the existing shareholders or our employees pursuant to their respective pre-emptive rights, we may offer such shares to other investors through public offering or private negotiation with any person designated by us.

In addition, in accordance with the ROC Securities and Exchange Act, a public company such as us that intends to offer new shares for cash must offer to the public at least 10% of the shares to be sold except in certain limited circumstances. This percentage can be increased by a resolution passed at a stockholders' meeting, held in accordance with the Company Act and our Articles of Incorporation, which would diminish the number of new shares subject to the preemptive rights of existing stockholders.

**Meetings of Stockholders**

Pursuant to the ROC Securities and Exchange Act, as a listed company, we must hold a general shareholders' meeting within six months after the end of each fiscal year and may not seek any extension for such meeting unless there are legitimate reasons and approval has been obtained from the competent authority. These meetings are generally held in New Taipei City, Taiwan. Special stockholders' meetings may be convened by resolution of the board of directors, or by the board of directors upon the written request of any stockholder or stockholders who have held 3% or more of the issued shares continuously for one year or longer, or by the stockholders who have held over 50% of the issued shares continuously for three months or longer. Stockholders' meetings may also be convened by an independent director. Notice in writing of general meetings of stockholders, stating the place, time and agenda must be dispatched to each stockholder at least 30 days, in the case of general meetings, and 15 days, in the case of special meetings, before the date set for each meeting. Except in certain circumstances described below, a majority of the holders of all issued and outstanding common shares present at a stockholders' meeting constitutes a quorum for meetings of stockholders. Stockholders of 1% or more of the total number of our outstanding shares are entitled to submit, during the period of time prescribed by us no less than ten days, one proposal each year for consideration at our annual general stockholders' meeting in accordance with the ROC Company Act.

**Voting Rights**

As previously required by the ROC Company Act, our Articles of Incorporation provide that a holder of common shares has one vote for each common share. Cumulative voting applies to the election of our directors. The election of independent and non-independent directors should be held simultaneously while the ballots for the election of directors and independent directors are cast separately. According to Article 146-1 of the Insurance Act of the ROC, insurance companies that hold our shares may not be our directors or vote for the election of our directors.

In general, a resolution can be adopted by the holders of more than one-half of the common shares represented at a stockholders' meeting at which the holders of more than half of all issued and outstanding common shares are present. Under the ROC Company Act, the approval by more than one-half of the common shares represented at a stockholders' meeting in which a quorum of at least two-thirds of all issued and outstanding common shares are represented is required for major corporate actions, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•amendment to our Articles of Incorporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•entering into, modification or termination of any contracts regarding leasing of all business, outsourcing of operations or joint operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•transfer of the whole or substantial part of our business or assets;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•taking over of the whole of the business or assets of any other company which would have significant impact on our operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•distribution of any share dividend;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•dissolution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•excusing a director from his or her non-competition obligation, which may allow such director to do anything for himself or on behalf of another person that is within the scope of our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•merger or spin-off; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•dismissing of directors.

Alternatively, the ROC Company Act provides that in the case of a public company, such as us, a resolution may be adopted by the holders of at least two-thirds of the common shares represented at a meeting of stockholders at which holders of more than one-half of issued and outstanding common shares are present.

A stockholder may be represented at a general or special meeting by proxy if a valid proxy form, which is printed by the company, is delivered to us at least five days before the commencement of the general or special stockholders' meeting. Except for trust enterprises or share registrar approved by the Securities and Futures Bureau of the FSC, where one person is appointed as proxy by two or more stockholders who together hold more than 3% of the total issued common shares, the votes of those stockholders in excess of 3% of the outstanding common shares shall not be counted. Alternatively, if the stockholder would like to exercise its voting right at a general or special meeting but cannot be present at the meeting in person, we have set up an electronic voting mechanism for such stockholder to exercise voting right. The stockholder is not allowed to exercise voting right through an electronic voting mechanism if such stockholder fails to revoke the granted proxy (if any) at least two days prior to the general or special meeting.

At the time of any vote, if a director of a public company has pledged more than half of the holding at the time the director was elected, such director will not be allowed to exercise the voting rights with respect to the number of shares pledged in excess of the half of the number of shares that such director held in such public company at the time the director was elected. The maximum number of shares ineligible for voting pursuant to the provision above cannot exceed half of the number of shares that such director held in such public company at the time the director was elected. In addition, any shares that were ineligible for voting pursuant to the above provision would not count as being present for such vote, but may be counted as present for calculation of attendance quorum.

Any stockholder who has a personal interest in the matter under discussion at a stockholders' meeting, the outcome of which may impair our interests, shall not vote or exercise voting rights on behalf of another stockholder; the shares held by such stockholder will not be counted as present for such vote but, may be counted as present for calculation of attendance quorum.

Holders of our ADSs generally will not be able to exercise voting rights on the common shares underlying ADSs on an individual basis.

**Other Rights of Stockholders**

Under the ROC Company Act and the Business Mergers and Acquisitions Act, dissenting stockholders who also made negative votes or waived their voting rights are entitled to appraisal rights in certain major corporate actions, such as a planned transfer of the whole or part of the business or a proposed merger by us. A dissenting stockholder who voted against the proposed transaction or otherwise abstained from voting may request us to purchase back all of the shares owned by the stockholder at a fair price determined by mutual agreement or determined by the court if a mutual agreement cannot be reached. For example, if we propose to split up or to consolidate or merge with another company, stockholders may exercise their appraisal rights by serving a written notice or raising his objection verbally with a record prior to or during the related stockholders' meeting. Moreover, a stockholder has the right to file a petition in the court for annulment of any resolution adopted at a stockholders' meeting where the procedures for convening the stockholders' meeting or the method of adopting the resolutions at the meeting is contrary to law or our Articles of Incorporation.

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We have adopted a nomination procedure for election of directors as stipulated in the ROC Company Act, which provides that stockholders holding 1% or more of our total issued shares may submit to us a list of candidates for directors, including independent directors.

**Register of Stockholders and Record Dates**

Our share registrar, Yuanta Securities Co., Ltd., maintains our register of stockholders at its offices in Taipei City, Taiwan. Under the ROC Company Act, we may, by giving advance public notice, set a record date and close the register of stockholders for a specified period in order for us to determine the stockholders or pledgees that are entitled to rights pertaining to the common shares. The specified period starting from such record date (to determine the entitled stockholders or pledgees) required is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•general stockholders' meeting—60 days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•special stockholders' meeting—30 days; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•relevant record date for distribution of dividends or other entitlements—5 days.

**Annual Consolidated Financial Statements**

At least ten days before the annual general stockholders' meeting, our annual consolidated financial statements prepared in accordance with Taiwan IFRSs, the business report, and the earnings distribution or losses offsetting proposal, must be available at our principal office in Taipei City, Taiwan for inspection by the stockholders.

**Transfer of Common Shares**

In accordance with our Articles of Incorporation, all of our shares are currently issued and transferred in book-entry form instead of issuing physical share certificates. After the book closure date, the Taiwan Depository & Clearing Corporation, or the TDCC, will deliver the names and addresses of the shareholders as of the book closure date to our registrar, Yuanta Securities Co., Ltd. Only shareholders as of the book closure date can assert shareholder rights against us.

**Acquisition of Our Own Common Shares**

Under the ROC Company Act, with minor exceptions, we cannot acquire our own common shares. Any common shares acquired by us, under certain of such minor exceptions, must be sold at the market price within six months after their acquisition.

In addition, under the ROC Securities and Exchange Act, a company whose shares are listed on the TWSE or traded on the Taipei Exchange (formerly known as Gre Tai Securities Market) may, pursuant to a board resolution adopted by a majority consent at a meeting attended by more than two-thirds of the directors and pursuant to the procedures prescribed by the Securities and Futures Bureau of the FSC, purchase its shares for the following purposes on the TWSE, the Taipei Exchange or by a tender offer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)for transfers of shares to its employees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)for conversion into shares from bonds with warrants, preferred shares with warrants, convertible bonds, convertible preferred shares or certificates of warrants issued by us; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)for maintaining its credit and its stockholders' equity, provided that the shares so purchased shall be cancelled thereafter.

The total shares purchased by us shall not exceed 10% of our total issued and outstanding shares. In addition, the total amount for purchase of the shares shall not exceed the aggregate amount of our retained earnings, the premium from our shares issues and the realized portion of our capital surplus.

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The shares purchased by us pursuant to items (1) and (2) above shall be transferred to the intended transferees within five years after the purchase; otherwise the same shall be cancelled. For the shares to be cancelled pursuant to item (3) above, we shall complete amendment registration for such cancellation within six months after the purchase.

The shares purchased by us shall not be pledged or hypothecated. In addition, we may not exercise any stockholders' rights attaching to these shares. Under the ROC Company Act, we may transfer the treasury stock to our employees and impose transfer restrictions on the shares up to two years.

**Liquidation Rights**

In the event of our liquidation, the assets remaining after payment of all debts, liquidation expenses and taxes will be distributed pro rata to the stockholders in accordance with the relevant provisions of the ROC Company Act.

**Substantial Stockholders and Transfer Restrictions**

The ROC Securities and Exchange Act currently requires for public companies that (i) each director, supervisor, manager, as well as their respective spouses, minor children and nominees, and substantial stockholder (i.e., a stockholder who, together with his or her spouse, minor children or nominees, holds more than 5% of the shares of a public company) to report any change in that person's shareholding to the issuer of the shares on a monthly basis and (ii) each director, supervisor, manager or substantial stockholder holding such common shares for more than a six month period to report his or her intent to transfer any shares listed on the TWSE or traded on the Taipei Exchange to the Securities and Futures Bureau of the FSC at least three days before the intended transfer, unless the number of shares to be transferred each trading day is no more than 10,000 shares. ADS holders holding more than 5% of our shares, including common shares represented by ADSs, may be subject to the above-mentioned obligations.

In addition, the number of shares that can be sold or transferred on the TWSE or the Taipei Exchange by any person subject to the restrictions described above on any given day may not exceed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•0.2% of the outstanding shares of the company in the case of a company with no more than 30 million outstanding shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•0.2% of 30 million shares plus 0.1% of the outstanding shares exceeding 30 million shares in the case of a company with more than 30 million outstanding shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•in any case, 5% of the average daily trading volume (number of shares) on the TWSE or the Taipei Exchange for the ten consecutive trading days preceding the reporting day on which day the director, supervisor, manager or substantial stockholder or their respective spouse, minor child or nominee reports the intended share transfer to the Securities and Futures Bureau.

Block trading, auction sale, purchase by auction, after-hours trading and sales or transfers of our ADSs are not subject to these restrictions; however, these restrictions will still apply to sales of common shares upon withdrawal of ADSs.

**C. Material Contracts**

We have not entered into any material contracts other than in the ordinary course of business and other than those described elsewhere in this annual report.

**D. Exchange Controls** 

**Foreign Investment and Exchange Controls in Taiwan**

*We have extracted from publicly available documents the information presented in this section. Please note that citizens of the PRC and entities organized in the PRC are subject to special ROC laws, rules and regulations, which are not discussed in this section.*

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**General**

Historically, foreign investments in the securities market of Taiwan were restricted. However, commencing in 1983, the Taiwan government has from time to time enacted legislation and adopted regulations to make foreign investment in the Taiwan securities market possible. Initially, only overseas investment trust funds of authorized securities investment trust enterprises established in Taiwan were permitted to invest in the Taiwan securities market. Since January 1, 1991, qualified foreign institutional investors are allowed to make investments in the Taiwan listed securities market. Since March 1, 1996, overseas Chinese, non-resident foreign institutional and individual investors (other than qualified foreign institutional investors), called "general foreign investors," are permitted to make direct investments in the Taiwan securities market.

**Foreign Investment in Taiwan Securities Market**

On December 28, 1990, the Executive Yuan, the cabinet of the ROC government, approved guidelines drafted by the Securities and Futures Commission (the predecessor of the Securities and Futures Bureau), which, since January 1, 1991, has allowed direct foreign investment in Taiwan's securities that are listed on the TWSE or other Taiwan securities approved by the Securities and Futures Bureau by certain eligible qualified foreign institutional investors.

In addition to qualified foreign institutional investors, certain individual and foreign institutional investors which meet certain qualifications set by the Securities and Futures Bureau may invest in the shares of TWSE-listed companies, the Taipei Exchange (formerly known as Gre Tai Securities Market) traded companies, emerging market companies or other Taiwan securities approved by the Securities and Futures Bureau up to a limit of US$50 million (in the case of institutional investors) and US$5 million (in the case of individual investors) after obtaining permission from the TWSE.

On September 30, 2003 and June 15, 2004, the Securities and Futures Bureau issued amendments to the "Guideline Governing Investment in Securities by Overseas Chinese and Foreign Nationals" and relevant regulations, in which the Securities and Futures Bureau lifted certain restrictions and simplified the procedures required for foreign investments in Taiwan's securities market. The amendment focuses mainly on the following aspects:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the concept of "qualified foreign institutional investors" no longer exists. Foreign investors are reclassified as "off-shore foreign institutional investors," "on-shore foreign institutional investors," "off-shore general foreign investors," and "on-shore general foreign investors" based on whether they are institutions or natural persons, and whether they have presences in Taiwan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•for foreign investors to invest in Taiwan's securities market, registration with the TWSE, instead of the approval of the Securities and Futures Bureau, is required. The TWSE may withdraw or rescind the registration if the application documents submitted by foreign investors are untrue or incomplete, or if any material violation of the relevant regulations exists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•off-shore foreign investors may provide the securities they hold as the underlying shares of depositary receipts and act as selling stockholders in depositary receipts offerings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•off-shore foreign institutional investors are required to appoint their agent or nominee to attend the stockholders' meeting of the invested company.

Currently, subject to the specific restriction imposed by relevant regulations, the off-shore foreign institutional investors may invest in the Taiwan securities market without any amount of restriction. However, a ceiling may be separately determined by the Securities and Futures Bureau after consultation with the Central Bank of the ROC (Taiwan) for investment by offshore overseas Chinese and foreign individual investors.

**Foreign Investment Approval**

Other than investments permitted under Guideline Governing Investment in Securities by Overseas Chinese and Foreign Nationals, foreign investors (other than PRC persons) who wish to make (i) direct investments in the shares of Taiwan private companies or (ii) investment in 10% or more of the equity shares of a Taiwan company listed on TWSE or Taipei Exchange in any single transaction are required to submit a "foreign investment approval"

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application to the Department of Investment Review of the Ministry of Economic Affairs of Taiwan, or the DIR, or other government authority to qualify for benefits granted under the Statute for Investment by Foreign Nationals. DIR or other government authority reviews each foreign investment approval application and approves or disapproves the application after consultation with other governmental agencies. Any non-Taiwan person possessing a foreign investment approval may remit capital for the approved investment and repatriate annual net profits and interests and cash dividends attributable to an approved investment. Stock dividends, investment capital and capital gains attributable to the investment may be repatriated with approval of the DIR or other government authority.

In addition to the general restrictions against direct investment by non-Taiwan persons in Taiwan companies, non-Taiwan persons are currently prohibited from investing in prohibited industries in Taiwan under the Negative List promulgated by the Executive Yuan from time to time. The prohibition on direct foreign investment in the prohibited industries in the Negative List is absolute with the consequence of certain specific exemptions from the application of the Negative List. Under the Negative List, some other industries are restricted so that non-Taiwan persons may directly invest only up to a specified level and with the specific approval of the relevant authority which is responsible for enforcing the legislation which the negative list is intended to implement. The telecommunication industry is a restricted industry under the Negative List.

**Depositary Receipts**

In April 1992, the Securities and Futures Bureau began allowing Taiwan companies listed on the TWSE, with the prior approval of the Securities and Futures Bureau, to sponsor the issuance and sale of depositary receipts evidencing depositary shares. In December 1994, the ROC Ministry of Finance began allowing companies whose shares are traded on the Taipei Exchange (formerly known as Gre Tai Securities Market) also to sponsor the issuance and sale of depositary receipts evidencing depositary shares representing shares of its capital stock. Approvals for these issuances are still required.

After the issuance of a depositary share, a holder of the depositary receipt evidencing the depositary shares may request the depositary issuing the depositary share to cause the underlying shares to be sold in Taiwan and to distribute the proceeds of the sale to or to withdraw the shares and deliver the shares to the depositary receipt holder. A citizen of the PRC is not permitted to withdraw and hold our shares.

If you are an offshore foreign institutional investor holding the depositary receipts, you must register with the TWSE as a foreign investor before you will be permitted to withdraw the shares represented by the depositary receipts. In addition to obtaining registration with the TWSE, you must also (i) appoint a qualified local agent to, among other things, open a securities trading account with a local securities brokerage firm and a bank account to remit funds, exercise stockholders' rights and perform other functions as holders of ADSs may designate, (ii) appoint a custodian bank to hold the securities and cash proceeds, confirm transactions, settle trades and report and declare other relevant information; and (iii) appoint a tax guarantor as guarantor for the full compliance of the withdrawing depositary receipt holder's tax filing and payment obligations in the ROC. A depositary receipt holder not registered as a foreign investor with the TWSE, or not has made the necessary appointments as outlined above, will be unable to hold or subsequently transfer the shares withdrawn from the depositary receipt facility.

No deposits of shares may be made in a depositary receipt facility and no depositary shares may be issued against deposits without specific Securities and Futures Bureau approval, unless they are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)stock dividends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)free distributions of shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)due to the exercise by the depositary receipt holder preemptive rights in the event of capital increases for cash; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)if permitted under the deposit agreement and custody agreement and within the amount of depositary receipts which have been withdrawn, due to the direct purchase by investors or purchase through the depositary on the TWSE or the Taipei Exchange (formerly known as Gre Tai Securities Market) or delivery by investors of the shares for deposit in the depositary receipt facility. In this event, the total number of depositary receipts outstanding after an issuance cannot exceed the number of issued

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depositary receipts previously approved by the Securities and Futures Bureau of the FSC in connection with the offering plus any ADSs issued pursuant to the events described in (i), (ii) and (iii) above.

An ADS holder or the depositary, without obtaining further approvals from the Central Bank of the ROC (Taiwan) or any other governmental authority or agency of the ROC, may convert NT dollars into other currencies, including U.S. dollars, in respect of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the proceeds of the sale of common shares represented by ADSs or received as share dividends with respect to the common shares and deposited into the depositary receipt facility; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any cash dividends or distributions received from the common shares.

In addition, the depositary may also convert into NT dollars incoming payments for purchases of common shares for deposit in the depositary receipt facility against the creation of additional ADSs. If you withdraw the common shares underlying your ADSs and become a holder of our common shares, you may convert into NT dollars subscription payment for rights offerings. The depositary may be required to obtain foreign exchange payment approval from the Central Bank of the ROC (Taiwan) on a payment-by-payment basis for conversion from NT dollars into foreign currencies of the proceeds from the sale of subscription rights of new common shares. Although it is expected that the Central Bank of the ROC (Taiwan) will grant approval as a routine matter, required approvals may not be obtained in a timely manner, or at all.

**Exchange Controls**

Taiwan's Foreign Exchange Control Statute and regulations provide that all foreign exchange transactions must be executed by banks designated to handle foreign exchange transactions by the FSC and by the Central Bank of the ROC (Taiwan). Current regulations favor trade-related foreign exchange transactions. Consequently, foreign currency earned from exports of merchandise and services may now be retained and used freely by exporters. All foreign currency needed for the importation of merchandise and services may be purchased freely from the designated foreign exchange banks.

Aside from trade-related foreign exchange transactions, Taiwan companies and residents may remit to and from Taiwan foreign currencies of up to US$100 million (or its equivalent) and US$10 million, (or its equivalent), respectively, in each calendar year. Such limits were raised from US$50 million (as for Taiwan companies) and US$5 million (as for Taiwan residents) to US$100 million and US$10 million respectively, effective from November 1, 2024, pursuant to a ruling promulgated by the Central Bank of the ROC (Taiwan). These limits apply to remittances involving conversion between New Taiwan dollars and U.S. dollars or other foreign currencies. A requirement is also imposed on all private enterprises to register all medium and long-term foreign debt with the Central Bank of the ROC (Taiwan).

In addition, a foreign person without an alien resident card or an unrecognized foreign entity may remit to and from Taiwan foreign currencies of up to US$100,000 per remittance if required documentation is provided to Taiwan authorities. This limit applies only to remittances involving conversion between New Taiwan dollars and U.S. dollars or other foreign currencies.

**E. Taxation** 

**ROC Taxation** 

The discussion below describes the principal ROC tax consequences of the ownership and disposition of ADSs representing common shares and of common shares. It applies to you only if you are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•an individual who is not a citizen of the ROC, who owns ADSs or common shares and who is not physically present in Taiwan for 183 days or more during any calendar year; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a corporation or a non-corporate body that is organized under the laws of a jurisdiction other than the ROC for profit-making purposes and has no fixed place of business or other permanent establishments in Taiwan.

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You should also consult your tax advisors concerning the tax consequences of owning ADSs and common shares in the ROC and any other relevant taxing jurisdiction to which they are subject.

***Dividends***

Dividends declared by us out of our retained earnings and distributed to you are subject to ROC withholding tax, currently at the rate of 21%, pursuant to the amendment to the Standards of Withholding Rates for Various Incomes promulgated by the Ministry of Finance of the ROC effective from January 1, 2018, on the amount of the distribution in the case of cash dividends or on the par value of the common shares in the case of stock dividends.

Share or cash dividends paid by us out of our capital surplus which are derived from the issuance of shares at a premium are not subject to ROC withholding tax. According to the rulings of Ref. Tai-Tsai-Hsuei-Tzi-09504509440 issued by the Ministry of Finance of the ROC, if a company reduces its share capital and redeems for cash its outstanding common shares issued to the company's stockholders by capitalization of capital surplus, those premiums under the capitalized capital surplus derived from re-evaluation of assets, sale of lands and/or merger with other enterprises shall be deemed as the gain in the stockholders' capital investment, and shall be deemed as stockholders' dividend income (or investment revenue) and be subject to ROC income tax.

As the legal reserve is set-aside from company's profit earnings (after tax) in accordance with Article 237 of the ROC Company Act, receipt of distribution of legal reserve shall be deemed as stockholders' dividend income (or investment revenue) and be subject to ROC income tax collected by way of withholding at the time of distribution, currently at the rate of 21%, unless a lower withholding rate is provided under a tax treaty between the ROC and the jurisdiction where the non-ROC stockholder is a resident.

***Capital Gains***

Gains from the sale of property in the ROC are generally subject to ROC income tax. Effective January 1, 2016, capital gain on the sale of common shares, including common shares withdrawn from the ADS facility, realized by a non-resident individual or non-resident entity is no longer subject to the capital gain tax and is further exempted from alternative minimum tax, or the AMT.

Sales of ADSs by you are regarded as transactions relating to property located outside the ROC and thus any gains derived therefrom are currently not subject to ROC income tax.

***Preemptive Rights***

Distributions of statutory preemptive rights for common shares in compliance with ROC law are not subject to any ROC tax. Proceeds derived from sales of statutory preemptive rights evidenced by securities are subject to securities transaction tax at the rate of 0.3% of the gross amount received. Proceeds derived from sales of statutory preemptive rights which are not evidenced by securities are subject to capital gains tax at the rate of 20% of the gains realized if the seller is a non-ROC resident regardless of whether the non-ROC resident is an individual or entity.

Subject to compliance with ROC law, we, at our sole discretion, can determine whether statutory preemptive rights shall be evidenced by issuance of securities.

***Securities Transaction Tax***

A securities transaction tax, at the rate of 0.3% of the gross amount received, payable by the seller will be withheld upon a sale of common shares in Taiwan. Transfers of ADSs are not subject to ROC securities transaction tax. According to a letter issued by the Ministry of Finance of the ROC in 1996, withdrawal of common shares from the deposit facility will not be subject to ROC securities transaction tax.

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***Estate Taxation and Gift Tax***

ROC estate tax is payable on any property within Taiwan of a deceased person who is a non-resident individual, and ROC gift tax is payable on any property within Taiwan donated by any such person. Under ROC estate and gift tax laws, common shares issued by Taiwan companies are deemed located in Taiwan regardless of the location of the owner. It is not clear whether a holder of ADSs will be considered to own common shares for this purpose. Estate tax is payable at rates ranging from 10% of the first NT$56,210,000 to 20% of amounts over NT$112,420,000, and gift tax is payable at rates ranging from 10% of the first NT$28,110,000 to 20% of amounts over NT$56,210,000.

***Tax Treaty***

The ROC does not have an income tax treaty with the U.S. On the other hand, the ROC has income tax treaties with Indonesia, Israel, Singapore, South Africa, Australia, Vietnam, New Zealand, Malaysia, North Macedonia, Switzerland, the Netherlands, United Kingdom, Gambia, Senegal, Sweden, Belgium, Denmark, Paraguay, Hungary, France, India, Slovakia, Germany, Thailand, Eswatini, Luxembourg, Kiribati, Austria, Italy, Japan, Canada, Poland, Czech Republic, Saudi Arabia, and South Korea, which may limit the rate of ROC withholding tax on dividends paid with respect to common shares in Taiwan companies. It is unclear whether if you hold ADSs, you will be considered to hold common shares for the purposes of these treaties. Accordingly, if you may otherwise be entitled to the benefits of the relevant income tax treaty, you should consult your tax advisors concerning your eligibility for the benefits with respect to the ADSs.

**U.S. Federal Income Tax Considerations for U.S. Holders**

The following is a summary of certain U.S. federal income tax consequences, as of the date hereof, of the ownership and disposition of our shares and ADSs. The discussion set forth below is applicable only to beneficial owners of our shares or ADSs that hold the shares or ADSs as capital assets and that are U.S. holders (defined below) and non-residents of the ROC. You are a U.S. holder if you are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•an individual who is a citizen or resident of the U.S.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a corporation, or other entity taxable as a corporation for U.S. federal income tax purposes, created or organized in or under the laws of the U.S., any state thereof or the District of Columbia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•an estate the income of which is subject to U.S. federal income taxation regardless of its source;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a trust if it is subject to the primary supervision of a court within the U.S. and one or more U.S. persons have the authority to control all substantial decisions of the trust; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a trust that has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person.

This summary is based on the provisions of the Internal Revenue Code of 1986, as amended, or the Code, and regulations, rulings and judicial decisions thereunder as of the date hereof, and such authorities may be replaced, revoked or modified so as to result in U.S. federal income tax consequences different from those discussed below. We cannot assure you that a later change in law will not alter significantly the tax considerations that we describe in this summary. This summary is for general purposes only and you should not consider it to be tax advice. In addition, it assumes that the deposit agreement and any related agreement will be performed in accordance with their terms. This summary does not represent a detailed description of all the U.S. federal income tax consequences to you in light of your particular circumstances and does not address the effects of any state, local or non-U.S. tax laws (or other U.S. federal tax consequences, such as U.S. federal estate or gift tax consequences or the Medicare tax on net investment income). In addition, it does not represent a detailed description of the U.S. federal income tax consequences applicable to you if you are subject to special treatment under the U.S. federal income tax laws, including if you are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a dealer or broker in securities or currencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a trader in securities if you elect to use a mark-to-market method of accounting for your securities holdings;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a financial institution or an insurance company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a regulated investment company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a real estate investment trust;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a tax-exempt organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a person liable for alternative minimum tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a person holding shares or ADSs as part of a hedging, integrated or conversion transaction, constructive sale or straddle;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a person required to accelerate the recognition of any item of gross income with respect to our shares or ADSs as a result of such income being recognized on an applicable financial statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a person owning, actually or constructively, 10% or more of our stock (by vote or value);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a partnership or other pass-through entity for U.S. federal income tax purposes; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•a person whose "functional currency" is not the U.S. dollar.

If a partnership (or other entity or arrangement treated as a partnership for U.S. federal income tax purposes) holds our shares or ADSs, the tax treatment of a partner will generally depend upon the status of the partner and the activities of the partnership. If you are a partnership or a partner of a partnership holding our shares or ADSs, you should consult your tax advisor.

**You should consult your own tax advisor concerning the particular U.S. federal income tax consequences to you of the ownership and disposition of the shares or ADSs, as well as the consequences to you arising under other U.S. federal tax laws and the laws of any other taxing jurisdiction.**

In general, for U.S. federal income tax purposes, a U.S. holder who is the beneficial owner of an ADS will be treated as the owner of the shares underlying such ADS. Deposits or withdrawals of shares, actually or constructively, by U.S. holders for ADSs will not be subject to U.S. federal income tax.

***Taxation of Dividends***

The gross amount of distributions (other than certain pro rata distributions of shares to all stockholders) you receive on your shares or ADSs, including amounts withheld in respect of ROC withholding taxes, will generally be treated as dividend income to you to the extent the distributions are made from our current or accumulated earnings and profits as calculated according to U.S. federal income tax principles. These amounts (including withheld taxes) will be includible in your gross income as ordinary income on the day you actually or constructively receive the distributions, which in the case of an ADS will be the date actually or constructively received by the depositary. You will not be entitled to claim a dividends-received deduction generally allowed to corporations under the Code for any distributions that you receive from us.

Subject to applicable limitations (including a minimum holding period requirement), dividends received by non-corporate U.S. holders from a qualified foreign corporation may be treated as "qualified dividend income" that is subject to reduced rates of taxation. Subject to the discussion below under "—Passive Foreign Investment Company," a foreign corporation is generally treated as a qualified foreign corporation with respect to dividends paid by that corporation on shares (or ADSs backed by such shares) that are readily tradable on an established securities market in the U.S. Under current U.S. Treasury Department guidance, our ADSs, which are listed on the NYSE, but not our shares, are treated as readily tradable on an established securities market in the U.S. Thus, we do not believe that dividends that we pay on our shares that are not represented by ADSs currently meet the conditions required for these reduced tax rates. There also can be no assurance that our ADSs will continue to be readily tradable on an established securities market in the U.S. in later years, or that our shares will be readily tradable on an established securities market in the U.S. in any given year. You should consult your own tax advisor regarding the application of these rules given your particular circumstances.

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The amount of any dividend paid in NT dollars will equal the U.S. dollar value of the NT dollars you receive, calculated by reference to the exchange rate in effect on the date you actually or constructively receive the dividend, which in the case of an ADS will be the date actually or constructively received by the depositary, regardless of whether the NT dollars are actually converted into U.S. dollars. If the NT dollars received as a dividend are converted into U.S. dollars on the date they are actually or constructively received, you generally will not be required to recognize foreign currency gain or loss in respect of the dividend income. If the NT dollars received as a dividend are not converted into U.S. dollars on the date of receipt, you will have a basis in the NT dollars equal to their U.S. dollar value on the date of receipt. Any gain or loss you realize if you subsequently sell or otherwise dispose of the NT dollars will be treated as ordinary income or loss from sources within the U.S. for foreign tax credit limitation purposes.

Subject to certain conditions and limitations under the Code, you may be entitled to a credit against your U.S. federal income taxes or a deduction for any ROC taxes that are withheld from dividend distributions made to you. The limitation on foreign taxes eligible for credit is calculated separately with respect to specific classes of income. For purposes of calculating the foreign tax credit, dividends we pay with respect to shares or ADSs will generally be considered passive category income from sources outside the U.S. However, a U.S. holder that has held shares or ADSs for less than a specified minimum period during which it is not protected from risk of loss, or is obligated to make payments related to the dividends, may not be allowed a foreign tax credit for foreign taxes imposed on dividends paid on shares or ADSs. Furthermore, Treasury regulations addressing foreign tax credits, or the Foreign Tax Credit Regulations, impose additional requirements for foreign taxes to be eligible for a foreign tax credit, and there can be no assurance that those requirements will be satisfied. The Treasury and the Internal Revenue Service, or the IRS, are considering proposing amendments to the Foreign Tax Credit Regulations. In addition, notices from the IRS provide temporary relief by allowing taxpayers that comply with applicable requirements to apply many aspects of the foreign tax credit regulations as they previously existed (before the release of the current Foreign Tax Credit Regulations) for taxable years ending before the date that a notice or other guidance withdrawing or modifying the temporary relief is issued (or any later date specified in such notice or other guidance). Instead of claiming a foreign tax credit, you may be able to deduct ROC withholding taxes on dividends in computing your taxable income, subject to generally applicable limitations under U.S. law (including that a U.S. holder is not eligible for a deduction for otherwise creditable foreign income taxes paid or accrued in a taxable year if such U.S. holder claims a foreign tax credit for any foreign income taxes paid or accrued in the same taxable year).The rules governing the foreign tax credit and deductions for foreign taxes are complex. We therefore urge you to consult your tax advisor regarding the availability of the foreign tax credit or a deduction under your particular circumstances.

To the extent that the amount of any distribution you receive exceeds our current and accumulated earnings and profits for a taxable year, as determined under U.S. federal income tax principles, the distribution will first be treated as a tax-free return of capital, causing a reduction in your adjusted basis in the shares or ADSs and thereby increasing the amount of gain, or decreasing the amount of loss, you will recognize on a subsequent disposition of the shares or ADSs. The balance in excess of adjusted basis, if any, will be taxable to you as capital gain recognized on a sale or exchange. However, we do not expect to keep earnings and profits in accordance with U.S. federal income tax principles. Therefore, you should expect that a distribution will generally be reported as a dividend.

It is possible that pro rata distributions of shares or ADSs to all stockholders may be made in a manner that is not subject to U.S. federal income tax. In such case, the basis of any new shares or ADSs so received will generally be determined by allocating your basis in the old shares or ADSs between the old shares or ADSs and the new shares or ADSs, based on their relative fair market values on the date of distribution. For U.S. tax purposes, any such tax-free share distribution would not result in foreign source income to you. Consequently, you may not be able to use a foreign tax credit for any ROC withholding tax imposed on such distributions unless you can use the credit (subject to applicable limitations) against U.S. federal income tax due on other foreign source income in the appropriate category for foreign tax credit purposes.

***Taxation of Capital Gains***

When you sell or otherwise dispose of your shares or ADSs, you will generally recognize capital gain or loss in an amount equal to the difference between the U.S. dollar value of the amount realized for the shares or ADSs and your basis in the shares or ADSs, determined in U.S. dollars. Such gain or loss will generally be long-term capital gain or loss if you have held the shares or ADSs for more than one year. If you are an individual or other

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non-corporate holder, long-term capital gains will be eligible for reduced rates of taxation. Your ability to deduct capital losses is subject to limitations. For foreign tax credit limitation purposes, such gain or loss will generally be treated as U.S. source gain or loss.

Any ROC securities transaction taxes that you pay upon the disposition of shares generally will not be creditable foreign taxes for U.S. federal income tax purposes. You are urged to consult your tax advisors regarding the U.S. federal income tax consequences of these taxes.

***Passive Foreign Investment Company***

We believe that we were not a "passive foreign investment company," or PFIC, for U.S. federal income tax purposes for our taxable year ending on December 31, 2025, and we do not expect to become a PFIC for our current taxable year or in the foreseeable future, although there can be no assurance in this regard. If we were treated as a PFIC for any taxable year during which you held our shares or ADSs, you could be subject to additional U.S. federal income taxes on gain recognized with respect to the shares or ADSs and on certain distributions, plus an interest charge on certain taxes treated as having been deferred under the PFIC rules.

Non-corporate U.S. holders will not be eligible for reduced rates of taxation on any dividends received from us if we are a PFIC in the taxable year in which such dividends are paid or in the preceding taxable year.

***Information Reporting and Backup Withholding***

In general, information reporting will apply to dividends in respect of our shares or ADSs and the proceeds from the sale, exchange or other disposition of our shares or ADSs that are paid to you within the U.S. (and in certain cases, outside the U.S.), unless you establish that you are an exempt recipient such as a corporation. A backup withholding tax may apply to such payments if you fail to provide a correct taxpayer identification number and a certification that you are not subject to backup withholding or if you fail to report in full dividend and interest income.

Backup withholding is not an additional tax and any amounts withheld under the backup withholding rules will be allowed as a refund or a credit against your U.S. federal income tax liability provided the required information is timely furnished to the IRS.

**F. Dividends and Paying Agents** 

Not applicable.

**G. Statement by Experts**

Not applicable.

**H. Documents on Display**

We have filed this annual report on Form 20-F, including exhibits, with the SEC. As allowed by the SEC, in Item 19 of this annual report, we incorporate by reference certain information we have already filed with the SEC. This means that we can disclose important information to you by referring you to another document filed separately with the SEC. The information incorporated by reference is considered to be part of this annual report.

You may read and copy this annual report, including the exhibits incorporated by reference in this annual report, at the SEC's Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549 and at the SEC's regional offices in New York, New York and Chicago, Illinois. You also can obtain copies of this annual report, including the exhibits incorporated by reference in this annual report, from the SEC's Public Reference Room and regional offices upon payment of a duplicating fee.

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The SEC also maintains a website at www.sec.gov that contains reports, proxy statements and other information regarding registrants that file electronically with the SEC. Our annual report and some of the other information submitted by us to the SEC may be accessed through this website.

**I. Subsidiary Information** 

Not applicable.

**J. Annual Report to Security Holders**

Not applicable.

**ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

Market risk is the risk of loss related to adverse changes in market prices, including interest rates and foreign exchange rates, of financial instruments. In the normal course of business, we are routinely subject to a variety of risks, including market risk associated with interest rate movements, currency rate movements on non-NT dollar-denominated assets and liabilities and equity price movements on our portfolio of equity securities.

We regularly assess these financial instruments and their ability to address market risk and have established policies and business practices to protect against the adverse effects of these and other potential exposures.

**Interest Rate Risk** 

We do not expect interest rate risk to have a material impact on our financial condition and results of operations. Please refer to "Item 5. Operating and Financial Review and Prospects—B. Liquidity and Capital Resources" for a discussion of our loans.

For our non-fixed interest rate loans, the interest rates will change in accordance with the benchmark rates of the banks we borrowed from. For the financial assets, the risk associated with fluctuating interest rates is principally confined to our cash deposits in banks, which is one of the many ways we manage our capital. Assuming an increase or decrease of 0.25% in the interest rates of our non-fixed interest rate financial assets and loans, our profit before tax for the year ended December 31, 2025 would have increased or decreased by NT$42 million (US$1.3 million). We have not used any derivative financial instruments to hedge interest rate risk. We have not been exposed, nor do we anticipate being exposed to material risks due to changes in interest rates. As of December 31, 2025, our cash and cash equivalents amounted to NT$36.9 billion (US$1.2 billion). Interest income from our cash deposits in banks accounts for only a very small percentage of our total revenues. Therefore, we believe our exposure to interest rate risk is immaterial.

**Foreign Currency Risk**

We are exposed to foreign currency risk as a result of (i) our foreign currency and derivative trading activities; (ii) our telecommunications equipment being sourced from overseas suppliers; (iii) our international settlement payments associated with our services for international calls and roaming traffic; and (iv) investment denominated in foreign currencies.

We entered into forward exchange contracts to reduce our exposure to foreign currency risk due to fluctuations in exchange rates. Outstanding forward exchange contracts on December 31, 2025 were as follows:

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| | | | |
|:---|:---|:---|:---|
| **FX Instrument** | **Currencies<br>Involved** | **Maturity<br>Period** | **Contract<br>Amount** |
| Forward exchange contracts-Buy | NT$/USD | January 2026 | NT$30 million/USD1.0 million |
| Forward exchange contracts-Buy | NT$/EUR | January 2026 | NT$55 million/EUR1.5 million |
| Forward exchange contracts-Buy | NT$/EUR | March 2026 | NT$89 million/EUR2.5 million |
| Forward exchange contracts-Buy | NT$/EUR | March 2026 | NT$89 million/EUR2.5 million |

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Note 38 to our consolidated financial statements included elsewhere in this annual report provides a sensitivity analysis for foreign currency risk.

**Equity Price Risk**

We are exposed to equity price risk as a result of holding other company's equity and we manage our investment portfolio in accordance with our internal policies and procedures.

The table below presents the carrying amount and accumulated unrealized gain or loss for our financial assets at fair value through profit or loss, or FVTPL, and financial assets at fair value through other comprehensive income, or FVOCI, as of December 31, 2025.

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| | | | |
|:---|:---|:---|:---|
|  | **Carrying<br>Amount** | **Unrealized<br>Gain** | **Unrealized<br>Loss** |
|  | **NT$** | **NT$** | **NT$** |
|  |  | **(in millions)** |  |
| Financial assets at FVTPL |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-listed stocks and limited partnership | 1141 | 11 | 401 |
| Financial assets at FVOCI |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Listed stocks | 316 | 127 | 182 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-listed stocks | 6490 | 1877 | 687 |

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The value of our equity holdings fluctuates depending on the market conditions. Assuming an increase or decrease of 5% in the equity prices, our profit before tax and other comprehensive income before tax for the year ended December 31, 2025 would have increased or decreased by NT$57 million (US$1.8 million) and NT$340 million (US$10.8 million) as a result of the changes in fair value of financial assets at FVTPL and financial assets at FVOCI, respectively. However, we do not expect the gains and losses in the values of the equities that we hold to have a material impact on our financial condition and results of operations.

**ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES**

**A. Debt Securities**

Not applicable.

**B. Warrants and Rights**

Not applicable.

**C. Other Securities** 

Not applicable.

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**D. American Depositary Shares**

**Depositary Fees**

Under the terms of the deposit agreement for our ADSs, an ADS holder may have to pay the following service fees to the depositary:

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| | |
|:---|:---|
| **Service** | **Fees** |
| Issuance of ADSs | Up to US$5.00 per 100 ADS issued |
| Cancellation of ADSs | Up to US$5.00 per 100 ADS cancelled |
| Distribution of cash dividends or other cash distributions | Up to US$0.02 per ADS held |
| Distribution of ADSs pursuant to stock dividends, free stock<br> distributions or exercises of rights | Up to US$5.00 per 100 ADS held |
| Distribution of securities other than ADSs or rights to purchase<br> additional ADSs | Up to US$5.00 per 100 ADS held |

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**Depositary Charges** 

In addition, an ADS holder shall be responsible for the following charges:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•taxes and other governmental charges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•such registration fees as may from time to time be in effect for the registration of common shares or other deposited securities on the share register and applicable to transfers of common shares or other deposited securities to or from the name of the custodian, the depositary or any nominees upon the making of deposits and withdrawals, respectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•such SWIFT, facsimile transmission and other communication expenses as are expressly provided in the deposit agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the expenses and charges incurred by the depositary in the conversion of foreign currency; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•any other charge payable by the depositary in connection with the servicing of common shares or other deposited securities.

Depositary fees payable upon the issuance and cancellation of ADSs are typically paid to the depositary by the brokers (on behalf of their clients) receiving the newly-issued ADSs from the depositary and by the brokers (on behalf of their clients) delivering the ADSs to the depositary for cancellation. The brokers in turn charge these transaction fees to their clients.

Depositary fees payable in connection with distributions of cash or securities to ADS holders and the depositary services fee are charged by the depositary to the holders of record of ADSs as of the applicable ADS record date. The depositary fees payable for cash distributions are generally deducted from the cash being distributed. In the case of distributions other than cash (i.e., stock dividends, rights offerings), the depositary charges the applicable fee to the ADS record date holders concurrent with the distribution. In the case of ADSs registered in the name of the investor (whether certificated or un-certificated in direct registration), the depositary sends invoices to the applicable record date ADS holders. In the case of ADSs held in brokerage and custodian accounts via the central clearing and settlement system, The Depository Trust Company, or DTC, the depositary generally collects its fees through the systems provided by DTC (whose nominee is the registered holder of the ADSs held in DTC) from the brokers and custodians holding ADSs in their DTC accounts. The brokers and custodians who hold their clients' ADSs in DTC accounts in turn charge their clients' accounts the amount of the fees paid to the depositary.

In the event of refusal to pay the depositary fees and charges, the depositary may, under the terms of the deposit agreement, refuse the requested service until payment is received or may set off the amount of the depositary fees from any distribution to be made to the ADS holder.

------

The fees and charges ADS holders may be required to pay may vary overtime and may be changed by us and by the depositary. ADS holders will receive prior notice of such changes.

**Payments by Depositary** 

In 2025, we received US$0.3 million net payments (after deducting the 30% U.S. withholding tax) from JPMorgan Chase Bank, N.A., the Depositary Bank for our ADR program. The payments were intended to cover certain of our expenses incurred in relation to the ADR program for the year, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•investor relations efforts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•legal fees, NYSE listing fees, proxy process expenses, and SEC filing fees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Sarbanes-Oxley and accounting related expenses in connection with ongoing SEC compliance and listing requirements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•other ADR program-related expenses.

------

**Part II**

**ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES**

None.

**ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS**

None.

**ITEM 15. CONTROLS AND PROCEDURES** 

**Disclosure Controls and Procedures**

As of the end of the period covered by this annual report, an evaluation has been carried out under the supervision and with the participation of our management, including our chief executive officer and our chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined under Rules 13a-14(c) and 15d-14(c) promulgated under the Securities Exchange Act of 1934, as amended. Based on that evaluation, our chief executive officer and chief financial officer have concluded that our disclosure controls and procedures are effective in ensuring that material information required to be disclosed in this annual report is recorded, processed, summarized and reported to them for assessment, and required disclosure is made within the time period specified in the rules and forms of the SEC.

**Management's Annual Report on Internal Control Over Financial Reporting**

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended, for our company. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IASB), or IFRSs, and includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of a company's assets, (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with IFRSs, and that a company's receipts and expenditures are being made only in accordance with authorizations of a company's management and directors, and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of a company's assets that could have a material effect on the consolidated financial statements.

Because of its inherent limitations, a system of internal control over financial reporting can provide only reasonable assurance with respect to consolidated financial statement preparation and presentation and may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

As required by Section 404 of the Sarbanes-Oxley Act of 2002 and related rules as promulgated by the SEC, management assessed the effectiveness of our internal control over financial reporting as of December 31, 2025 using criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

Based on this assessment, management concluded that our internal control over financial reporting was effective as of December 31, 2025 based on the criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

PricewaterhouseCoopers, Taiwan, an independent registered public accounting firm who has also audited our consolidated financial statements as of and for the year ended December 31, 2025, has issued an attestation report on the effectiveness of our internal control over financial reporting in accordance with the standards of the Public Company Accounting Oversight Board (United States).

------

**Attestation Report of the Registered Public Accounting Firm** 

Our independent registered public accounting firm, PricewaterhouseCoopers, Taiwan has audited the effectiveness of our internal control over financial reporting, as stated in its report. See "Report of Independent Registered Public Accounting Firm" to our consolidated financial statements included elsewhere in the annual report.

**Changes in Internal Control Over Financial Reporting**

There were no changes in our internal control over financial reporting that occurred during the year ended December 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

------

**ITEM 16. [Reserved]** 

**ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT**

Su-Ming Lin is our audit committee financial expert and independent director. See "Item 6. Directors, Senior Management and Employees —C. Board Practices."

The SEC has indicated that the designation of Dr. Lin as the audit committee financial expert does not: (i) make Dr. Lin the "expert" for any purpose, including without limitation for purposes of Section 11 of the Securities Act of 1933, as amended, as a result of this designation; (ii) impose any duties, obligations or liabilities on Dr. Lin that are greater than those imposed on him as a member of the audit committee and the board of directors in the absence of such designation; or (iii) affect the duties, obligations or liabilities of any other member of the audit committee or the board of directors.

**ITEM 16B. CODE OF ETHICS**

We have adopted a Code of Ethics and Ethical Corporate Management Best Practice Principles that apply to our directors, managers, employees, and mandataries, including our chief executive officer and chief financial officer. We have posted copies of our Code of Ethics and Ethical Corporate Management Best Practice Principles on our website at https://www.cht.com.tw/en/home/cht/about-cht/introduction/board_of_directors.

**ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES** 

The following table sets forth the aggregate fees by categories specified below in connection with certain professional services rendered by PricewaterhouseCoopers, Taiwan (PCAOB ID. 1345) for the fiscal year ended December 31, 2024 and 2025, our principal accountant for the years indicated. We did not pay any other fees to PricewaterhouseCoopers, Taiwan during the periods indicated below.

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2024** | **2025** | **2025** |
|  | **NT$** | **NT$** | **US$** |
|  | **(in millions)** | **(in millions)** | **(in millions)** |
| Audit fees<sup>(1)</sup> | 47.2 | 42.7 | 1.4 |
| Audit-related fees<sup>(2)</sup> |  |  |  |
| Tax fees<sup>(3)</sup> |  |  |  |
| All other fees<sup>(4)</sup> | 5.7 | 1.9 | 0.1 |

---

------

(1) "Audit fees" means the aggregate fees billed in each of the fiscal years listed for professional services rendered by our principal accountant for the audit of our annual consolidated financial statements or services that are normally provided by the auditors in connection with statutory and regulatory filings or engagements.

(2) "Audit-related fees" means the aggregate fees billed in each of the fiscal years listed for assurance and related services by our principal accountant that are reasonably related to the performance of the audit or review of our consolidated financial statements and are not reported under "Audit fees." Services comprising the fees disclosed under the category of "Audit-related fees" involve principally the issuance of agreed-upon procedures letters.

(3) "Tax fees" means the aggregate fees billed in each of the fiscal years listed for professional services rendered by our principal accountant for tax compliance, tax advice and tax planning. Services comprising the fees disclosed under the category of "Tax Fees" involve tax advice.

(4) "All other fees" means the aggregate fees billed in each of the last two fiscal years for products and services provided by our principal accountant other than the services reported in items (1) to (3) above.

All audit and non-audit services provided by PricewaterhouseCoopers, Taiwan for the fiscal year ended December 31, 2024 and 2025 were pre-approved by our audit committee according to the revised Rule 201(c)(7) of Regulation S-X, entitled "Audit Committee Administration of the Engagement," that served to strengthen requirements regarding auditor independence.

**ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES**

None.

------

**ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS**

Not applicable.

**ITEM 16F. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT**

Not applicable.

**ITEM 16G. CORPORATE GOVERNANCE**

As a ROC company listed on the NYSE, we are subject to the U.S. corporate governance rules to the extent that these rules are applicable to foreign private issuers. The following summary details the significant differences between our corporate governance practices and corporate governance standards for non-foreign private issuers (e.g., U.S. companies) under the NYSE Listed Company Manual.

Under Section 303A of the NYSE Listed Company Manual, NYSE-listed foreign private issuers may, in general, follow their home country corporate governance practices in lieu of most of the new NYSE corporate governance requirements. However, all NYSE-listed foreign private issuers must comply with Sections 303A.06, 303A.11, 303A.12(b), 303A.12(c) and 303A.14 of the NYSE Listed Company Manual.

**The Legal Framework**. In general, corporate governance principles for Taiwanese companies are set forth in the ROC Company Act, the ROC Securities and Exchange Act, regulations promulgated by the Securities and Futures Bureau of the FSC and, to the extent they are listed on the TWSE, listing rules of the TWSE. Corporate governance principles under provisions of ROC law may differ in significant ways to corporate governance standards for non-foreign private issuers listed on the NYSE. Committed to high standards of corporate governance, we have generally brought our corporate governance in line with U.S. regulations. However, we have not adopted certain recommended NYSE corporate governance standards where such standards are not in conformity with ROC laws or regulations or generally prevailing business practices in Taiwan. We believe the following to be the significant differences between our corporate governance practices and NYSE corporate governance rules applicable to non-foreign private issuers listed on the NYSE.

**Director Independence**. The NYSE corporate governance rules applicable to non-foreign private issuers listed on the NYSE require companies to have a majority of independent directors on the board of directors. The ROC Securities and Exchange Act requires the independent directors of a public company to comprise of no less than two persons and one-fifth of the total number of directors. We currently have five independent directors on our thirteen-member board of directors. We follow the standards regulated under the ROC Securities and Exchange Act and by the FSC for determining director independence, which are comparable to the standards imposed by the NYSE.

------

In addition, under the ROC requirements, our board of directors is not required to make a formal determination of a director's independence. Nevertheless, we believe that our independent directors are free from any business or other relationships that would impair the exercise of their independent judgment. Furthermore, pursuant to the NYSE Listed Company Manual, non-executive directors must meet on a regular basis without the management directors present. All of our directors attend our board of directors' meetings; however, no separate meeting is held among non-executive directors.

**Audit Committee**. On April 1, 2003, the SEC adopted final rules relating to the audit committee requirements. Foreign private issuers listed on the NYSE were required to comply with the related NYSE corporate governance rules by July 31, 2005. Our audit committee was established in September 2004 in accordance with the rules set forth in the NYSE Listed Company Manual. According to the NYSE corporate governance rules applicable to non-foreign private issuers listed on the NYSE, the board must review the status of any audit member that serves on more than three audit committees. There is no such requirement under the ROC law, which allows a person to serve as an independent director on up to four public companies in the ROC.

Section 303A.07 of the NYSE Listed Company Manual requires issuers to have at least three directors on the audit committee that meets the definition of independence set forth under Rule 10A-3 of the Exchange Act and Section 303A of the NYSE Listed Company Manual. There is no such requirement under the ROC law, which requires all independent directors of a public company to be members of the audit committee if the company has established such a committee.

On December 19, 2018, the FSC announced that, effective from January 1, 2020, all companies listed on TWSE/Taipei Exchange should establish an audit committee to replace supervisors. Our new audit committee started from the date of the annual general meeting on June 25, 2013, and is maintained as of the date of this annual report. See "Item 6. Directors, Senior Management and Employees—C. Board Practices." We now simultaneously comply with the relevant rules of the NYSE Listed Company Manual and the relevant rules and regulations in the ROC.

**Nominating/Corporate Governance Committee and Corporate Governance Principles**. The NYSE corporate governance rules applicable to non-foreign private issuers listed on the NYSE require companies to have a nominating/corporate governance committee, composed entirely of independent directors. In addition to identifying individuals qualified to become board members, the nominating/corporate governance committee must develop and recommend to the board a set of corporate governance principles. The ROC Company Act does not require companies incorporated in the ROC to have a nominating/corporate governance committee. We established a nomination committee in November 2025 pursuant to our company's Code of Corporate Governance as a guiding framework.

Following the establishment of the Nomination Committee in November 2025, any proposed amendments to our company's Code of Corporate Governance are first submitted to the Nomination Committee for review and subsequently submitted to the board of directors for deliberation and approval. The ROC Company Act requires that directors shall be elected by stockholders. Our Articles of Incorporation requires us, beginning in the fifth commencement, to establish at least three independent directors in the number of directors. The elections for directors shall proceed with the candidate nomination mechanism; the stockholders shall elect the directors from among the nominees listed in the roster of director candidates. Stockholders holding 1% or more of our outstanding shares are entitled to nominate candidates of directors in writing to us. The numbers of candidates nominated by stockholders shall not exceed the numbers of directors to be elected; neither the numbers of candidates nominated by the Board. Elections for independent and non-independent directors shall proceed concurrently, and the number of elected independent and non-independent directors shall be calculated separately.

Non-foreign private issuers listed on the NYSE are also required to adopt and disclose corporate governance guidelines. We currently comply with the ROC Non-Binding Corporate Governance Best Practice Principles for TWSE/Taipei Exchange Listed Companies promulgated by the TWSE, or Best Practice Principles, and we explain differences between our practice and the principles, if any, in our ROC annual report.

------

**Compensation Committee**. The NYSE corporate governance rules applicable to non-foreign private issuers listed on the NYSE require companies to have a compensation committee, composed entirely of independent directors. Article 14-6 of the ROC Securities and Exchange Act requires all listed companies to establish a compensation committee for directors, supervisors and managers' compensation, which includes salary, stock options and other rewards, as well as authorizes the Competent Authority (i.e., FSC) to enact a regulation on the authorities of the compensation committee and the qualifications of its members. See "Item 6. Directors, Senior Management and Employees—C. Board Practices" for description of our compliance.

**Code of Business Conduct and Ethics**. The NYSE corporate governance rules applicable to non-foreign private issuers listed on the NYSE require companies must adopt a code of business conduct and ethics for directors, officers and employees and promptly disclose any waivers of the code for directors or executive officers. We have adopted the Code of Ethics which applies to our directors, managers and employees, and the Ethical Corporate Management Best Practice Principles that applies to our directors, managers, employees and persons having substantial control over us. We have filed the Code of Ethics and the Ethical Corporate Management Best Practice Principles as exhibits to our annual report filed with the U.S. SEC and a copy is available to any stockholder upon request.

**Equity Compensation Plans**. The NYSE corporate governance rules applicable to non-foreign private issuers listed on the NYSE require that equity compensation plans be approved by a company's stockholders. Under the ROC Company Act and the ROC Securities and Exchange Act, the distribution of compensation to employees should be decided by the board of directors and reported in stockholders' meeting. The approval of stockholders' meeting is required for any issuances of restricted stock to employees, and the board of director has authority to approve employee stock option plans and to grant options to employees pursuant to such plans, subject to the approval of the FSC, and to approve share buy-back programs and transfer of shares to employees under such programs. We intend to follow only the ROC requirements.

**Means to Communicate with Non-Management Directors**. The NYSE corporate governance rules applicable to non-foreign private issuers listed on the NYSE require companies to establish a means for stockholders, employees and other interested parties to communicate with non-management directors. The ROC law does not have comparable requirements. However, according to the Best Practice Principles, companies are required to establish channels of communication with employees and encourage employees to communicate directly with the management or directors so as to reflect employees' opinions about the management, financial conditions and material decisions of the company concerning employee welfare. We have complied with these provisions.

**Internal Audit Function**. The NYSE corporate governance rules applicable to non-foreign private issuers listed on the NYSE require companies to establish an internal audit function to provide management and the audit committee with assessments of the company's risk management processes and system of internal control. We have complied with the Best-Practice Principles by setting up an internal control/audit system in accordance with the ROC Regulations Governing Establishment of Internal Control Systems by Public Companies.

Furthermore, from the year 2023, we began implementing digital auditing, utilizing digital tools within a risk-based framework, which has allowed us to enhance our risk identification capabilities and effectively risk assessments.

In addition, the FSC announced in August 2023 that corporates in Taiwan have aligned with the IFRS Sustainability Disclosure Standards. By the end of 2024, we have integrated sustainability information management into our internal control system and have included it as a mandatory annual audit item from 2025.

**CEO Certification to the NYSE.** The NYSE listing standards require the CEO of companies to certify compliance with NYSE corporate governance standards annually. ROC law does not contain such requirement. In this regard, we only follow the ROC corporate governance requirement which does not require CEO annual certification. However, our CEO and CFO are required to certify in the 20-F annual report that, to his or her knowledge the information contained therein fairly represents in all material respects the financial condition and results of operations of our company.

**ITEM 16H. MINE SAFETY DISCLOSURE**

Not applicable.

------

**ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTION**

Not applicable.

**ITEM 16J. INSIDER TRADING POLICIES**

We have adopted an insider trading policy governing the purchase, sale, and other dispositions of our securities by directors, senior management, and employees. A copy of the insider trading policy is attached as Exhibit 11.3 to this annual report.

**ITEM 16K. CYBERSECURITY**

**Risk Management and Strategy**

In order to ensure full security of our critical infrastructure and critical information infrastructure, we referenced Cybersecurity Framework, or CSF, of the National Institute of Standards and Technology in the U.S., as well as domestic and international standards and regulations, including the Administration Regulations of Cyber Security on Telecommunications Business, Cyber Security Management Act, Personal Data Protection Act, General Data Protection Regulation, or GDPR, BS 10012, ISO 27001, ISO 27011, ISO 27701, to establish our Cyber Security and Privacy Protection Risk Management Framework. Set forth below are measures that we undertake to manage cybersecurity risks.

***Internal Policies***

In order to prevent cybersecurity incidents, we have adopted a "Cybersecurity Policy" approved by the Chairman as well as the following measures:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•governance: organizational context, risk management strategy, roles and responsibilities and authorities, policy, oversight, cybersecurity supply chain risk management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•identification: asset management, risk assessment, and improvement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•protection: critical infrastructure security, network and system security, software/application development security, access control security, end-point security, operation and management security, awareness training, data security, and personal information security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•detection: vulnerability analysis and patch management, multi-layer protection, intelligent Security Operation Center, or SOC and multi-vector detection;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•response: incident report and response, anomaly analysis, forensics and decision-making, recovery and improvement plan, cybersecurity intelligence sharing and joint defense enhancement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•recovery: cybersecurity and personal data incident drills, internal and external audits, third-party certification, performance evaluation and continual improvement.

Through intelligent and automated cybersecurity governance mechanisms, the detection of cybersecurity threats and violation risks, while regularly conducting red team security assessments that include cybersecurity health diagnosis, we have fully integrated cybersecurity management into our daily operations, including employees, facilities, network, systems, applications and supply chain, the details measures implemented in these areas are described below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•employee security training: regularly hold cybersecurity training sessions and classes, encourage employees to obtain international cybersecurity certifications, promote employee awareness and professional capacities for cybersecurity and privacy protection, and regularly hold Social Engineering exercises to improve employee alertness to Advanced Persistent Threat, or APT, attacks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•facilities security: implement physical isolation, individualized gates, 24-hour intrusion alarms and video monitoring systems, and implement access control systems and prohibit personnel with concerns that may damage national security from causing machine room breach.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•network security: deploy multi-layered, in-depth security protection and detection mechanisms, and establish Demilitarized Zone, or DMZ, to control network access.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•system and application security: develop software based on Secure Software Development Life Cycle, or SSDLC, systems pass the security assessment before launch or updates, applications receive Mobile Application Basic Security, or MAS, certification marks from the Ministry of Economic Affairs, regularly scan for vulnerabilities and patch within time limit, establish software lists, understand the risk of software vulnerabilities and respond immediately through critical vulnerability early warnings, notifications and patching mechanisms, and all developers are required to pass security coding training and tests.

***Engagement of Service Providers***

We regularly conduct vulnerability scans of network equipment, ICT systems and applications. In addition, we engaged in third-party organizations with international cybersecurity professional qualifications to conduct simulated hacker attacks as part of third-party vulnerability analysis, red teaming and penetration test, ensuring the cybersecurity of service systems and applications.

We have adopted third-party security assessment procedures and data access control procedures to manage risks from cybersecurity threats associated with our use of third-party service providers. We perform security assessments on third parties that provide information and communication services to us by assessing their basic data security capabilities, information security compliance and application security vulnerabilities. In-data transmission processing and data security is ensured through access control in line with ISO 27001 standard and security measures such as transmission encryption.

We have included standardized cybersecurity complement provisions and personal data protection complement provisions in our procurement contracts with third-party suppliers to stipulate the cybersecurity responsibilities of such third parties, remediation measures to be taken in the event of cybersecurity risks, and damages upon the occurrence of cybersecurity incidents. We also conduct contract-based monitoring or on-site audits to ensure compliance with our cybersecurity policy and laws and regulations.

**Cybersecurity Governance Structure**

***Board of Directors***

Our board of directors is responsible for and engaged in the oversight of our continuous efforts in monitoring, assessing and managing the risks associated with cybersecurity threats or incidents. Our President regularly reports to the board of directors on the company's cybersecurity and privacy protection governance. The board reviews reports from management on material cybersecurity risks and incidents and discusses risk treatment plans with the management. At board meetings, the board also hears period reports from the management on cybersecurity risk management and governance and has follow-up discussions with the management.

***Policy Review and Approval***

All cybersecurity-related internal policies shall be reviewed and approved by the management personnel in charge of the proposing departments as well as the President prior to adoption.

Our management makes assessments of cybersecurity risks and incidents and reports the nature, origin and potential impact of cybersecurity risks and incidents to the board of directors based on an assessment of materiality so that the board can learn about material cybersecurity risks and incidents on a timely basis and make decisions accordingly. In addition, to keep the board regularly informed about cybersecurity matters, the management makes periodic reports to the board on cybersecurity risk management and governance at board meetings, has live discussions with the board and addresses their questions.

***Corporate Governance Committees***

In August 2023, we established the risk management committee at our board level, comprised of directors with various areas of expertise, including ICT, legal, risk management, auditing and cybersecurity. The committee oversees the implementation of our risk management mechanism, including cybersecurity and privacy protection risk management, and provides necessary recommendations for improvement to our board of directors.

------

Under the supervision of the abovementioned risk management committee, we established the risk management steering committee, which tracks and manages risk control issues of cybersecurity and privacy protection on a monthly basis. When a risk level has reached a greater extent than risk appetite or risk tolerance level and an early warning is required, or where there is a major crisis, the convener of our risk management steering committee will report to our risk management committee in a timely fashion and, if necessary, report to our board of directors accordingly.

Furthermore, to ensure effective cybersecurity management, we also established the cybersecurity and privacy protection management committee with the Chairman representing the board of directors to supervise the implementation of our "Cybersecurity Policy." Meanwhile, the president has been appointed as the convener, and our Chief Information Security Officer, or CISO, is responsible for supervising our internal cybersecurity matters.

On September 30, 2024, we appointed Dr. Jung-Kuei Chen as our CISO and Vice President of the Cybersecurity Department. Dr. Chen holds a Ph.D. in Electrical Engineering from National Taiwan University and has been with us for over 36 years. He possesses extensive cross-disciplinary practical experience in telecommunications, networks, cybersecurity, AI, information technology, and risk management. Previously, he served as the President of the Information Technology Group and the Vice President of the Telecom Laboratories. Dr. Chen has been instrumental in cultivating cybersecurity professionals within our company and enhancing our capabilities in independent cybersecurity technology research and development.

In addition, we established CHT Security Operation Center, or SOC, in 2013 with abundant experiences in large-scale hacking and defense scenarios. The Cybersecurity Department, a department dedicated to ICT security management, was also set up in 2016 as the executive secretariat. The Cybersecurity Department includes executive secretary with responsibilities that range from reporting on cybersecurity management performance, reviewing and improving risk-related issues, reviewing the suitability of cybersecurity programs, privacy protection policies and regulations, and supervising and evaluating compliance and efficacy of strategies. Our senior management is actively involved in the discussion with and decision process of the Cybersecurity Department in order to (i) align regulations with technology advancement for new business development, (ii) coordinate the overall cybersecurity policy, (iii) enact and amend required security specifications, (iv) utilize equipment for centralized security monitor, (v) defense and mitigate enterprise security risks, (vi) accelerate new business development, and (vii) provide customers with a secure and reliable digital ecosystem. The Cybersecurity Department is composed of the cybersecurity working group and the privacy protection working group. The two working groups hold meetings regularly and report to the board of directors.

Since 2021, we have arranged and been covered by data protection insurance to prevent potential major financial losses from cybersecurity incidents and safeguard the rights of our customers and investors. In 2025, we had not been subject to any punishment due to cybersecurity, and there were no incidents of material risks arising from cybersecurity or personal data protection. For more information, please visit the websites at: https://www.cht.com.tw/en/home/cht/esg/customer-care/cybersecurity (cybersecurity); www.cht.com.tw/en/home/cht/esg/customer-care/privacy-protection/privacy-policy (privacy protection). The information contained on our website is not incorporated herein by reference and does not constitute part of this annual report.

------

**PART III**

**ITEM 17. FINANCIAL STATEMENTS**

The Registrant has elected to provide the consolidated financial statements and related information specified in Item 18 in lieu of Item 17.

**ITEM 18. FINANCIAL STATEMENTS**

The following is a list of the consolidated financial statements and report of independent registered public accounting firm included in this annual report beginning on page F-1.

------

**ITEM 19. EXHIBITS** 

---

| | |
|:---|:---|
| **Exhibit**<br>**Number** | **Description of Exhibits** |
| 1.1\*<br>| [<u>Articles of Incorporation of Chunghwa Telecom Co., Ltd. (English translation), as last amended by Annual General Meeting on May 29, 2025).</u>](cht-ex1_1.htm) |
| 2.1 | [<u>Form of Amended and Restated Deposit Agreement dated as of December 27, 2023 among Chunghwa Telecom Co. Ltd., JPMorgan Chase Bank, N.A., as depositary, and all holders from time to time of ADRs issued thereunder, including the Form of American Depositary Receipt (incorporated by reference to Exhibit (a)(2) to the Registrant's Registration Statement on Form F-6 (File No. 333-147321) filed with the Commission on December 27, 2023).</u>](https://www.sec.gov/Archives/edgar/data/1132924/000119380523001658/e619118_ex99-a2.htm) |
| 2.2\* | [<u>Description of our securities registered pursuant to Section 12 of the Securities Exchange Act of 1934.</u>](cht-ex2_2.htm) |
| 8.1\* | [<u>List of Subsidiaries.</u>](cht-ex8_1.htm) |
| 11.1 | [<u>Code of Ethics (English translation) (incorporated by reference to Exhibit 11.1 to the Registrant's Annual Report on Form 20-F for the fiscal year ended December 31, 2022 (File No. 001-31731) filed with the Commission on April 17, 2023).</u>](https://www.sec.gov/Archives/edgar/data/1132924/000095017023012951/cht-ex11_1.htm) |
| 11.2\*<br>| [<u>Ethical Corporate Management Best Practice Principles (English translation), as last amended by Board of Directors on August 8, 2025</u>](cht-ex11_2.htm). |
| 11.3\*<br>| [<u>Insider Trading Policy of Chunghwa Telecom Co., Ltd, as last amended by Board of Directors on August 8, 2025</u>](cht-ex11_3.htm)[<u>.</u>](cht-ex11_3.htm) |
| 12.1\* | [<u>Certification of our Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</u>](cht-ex12_1.htm) |
| 12.2\* | [<u>Certification of our Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</u>](cht-ex12_2.htm) |
| 13.1\*\* | [<u>Certification of our Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</u>](cht-ex13_1.htm) |
| 13.2\*\* | [<u>Certification of our Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</u>](cht-ex13_2.htm) |
| 97 | [<u>Incentive Compensation Clawback Policy of Chunghwa Telecom Co., Ltd. (incorporated by reference to Exhibit 97 to the Registrant's Annual Report on Form 20-F for the fiscal year ended December 31, 2023 (File No. 001-31731) filed with the Commission on April 17, 2024)</u>](https://www.sec.gov/Archives/edgar/data/1132924/000095017024044919/cht-ex97.htm) |
| 101.INS\* | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document. |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents. |
| 104\* | Cover page formatted as Inline XBRL and contained in Exhibit 101. |

---

------

\* Filed herewith.

\*\* Furnished herewith.

------

**SIGNATURES**

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.

---

| | | |
|:---|:---|:---|
| CHUNGHWA TELECOM CO., LTD. | CHUNGHWA TELECOM CO., LTD. | CHUNGHWA TELECOM CO., LTD. |
| By: | /s/ CHIH-CHENG CHIEN | /s/ CHIH-CHENG CHIEN |
|  | Name: | Chih-Cheng Chien |
|  | Title: | Chairman and Chief Executive Officer |
|  |  | Date: April 15, 2026 |

---

------

**INDEX TO THE CONSOLIDATED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [<u>Report of Independent Registered Public Accounting Firm</u>](#report_of_independent_registered_public_) | F-1 |
| [<u>Consolidated Balance Sheets as of December 31, 2024 and 2025</u>](#consolidated_balance_sheets) | F-5 |
| [<u>Consolidated Statements of Comprehensive Income for the years ended December 31, 2023, 2024 and 2025</u>](#consolidated_statements_comprehensive_in) | F-7 |
| [<u>Consolidated Statements of Changes in Equity for the years ended December 31, 2023, 2024 and 2025</u>](#consolidated_statements_changes_in_equit) | F-9 |
| [<u>Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2024 and 2025</u>](#consolidated_statements_cash_flows) | F-10 |
| [<u>Notes to Consolidated Financial Statements</u>](#notes_to_consolidated_financial_statemen) | F-13 |

---

------

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

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

***Opinions on the Financial Statements and Internal Control over Financial Reporting***

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 each of the two years in the period ended December 31, 2025, including the related notes (collectively referred to as the "consolidated financial statements"). We also have audited the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2025 in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.

***Basis for Opinions***

The Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management's Annual Report on Internal Control Over Financial Reporting appearing under Item 15. Our responsibility is to express opinions on the Company's consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

------

***Definition and Limitations of Internal Control over Financial Reporting***

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

***Critical Audit Matters***

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

*Accuracy of Revenues from Mobile Services, Fixed-line Broadband Services and Fixed-line Data Services*

As described in Notes 3, 31 and 44 to the consolidated financial statements, revenue from mobile services, fixed-line broadband services and fixed-line data services makes up a significant portion of total revenues of $236,114 million for the year ended December 31, 2025. 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 revenue 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.

The principal considerations for our determination that performing procedures relating to accuracy of revenues from mobile services, fixed-line broadband services and fixed-line data services is a critical audit matter are that 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. This in turn led to a high degree of auditor effort required in performing procedures related to the accuracy of revenues from mobile services, fixed-line broadband services and fixed-line data services.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included obtaining 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 evaluating operating effectiveness of such controls, including (i) obtaining an understanding and evaluated the significant systems related to revenues from mobile services, fixed-line broadband services and fixed-line data services, and testing the effectiveness of information technology general controls as well as the automated controls for automatic

------

calculations and system interface over these systems and (ii) testing the effectiveness of 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. These procedures also included, among others, selecting 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.

/s/ PricewaterhouseCoopers, Taiwan

Taipei, Taiwan

April 15, 2026

We have served as the Company's auditor since 2024.

------

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

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

**Opinion on the Consolidated Financial Statements**

We have audited the accompanying consolidated statements of comprehensive income, changes in equity, and cash flows for the period ended December 31, 2023, and the related notes (collectively referred to as the "consolidated financial statements") of Chunghwa Telecom Co., Ltd. and subsidiaries (the "Company"). In our opinion, the consolidated financial statements present fairly, in all material respects, the results of its operations and its cash flows for the period ended December 31, 2023, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

**Basis for Opinion**

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.

/s/ Deloitte & Touche

Taipei, Taiwan

Republic of China

April 17, 2024

We began serving as the Company's auditor in 1998. In 2024 we became the predecessor auditor.

------

**CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS** 

**December 31, 2024 and 2025** 

**(In Millions of New Taiwan or U.S. Dollars)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2024** | **2025** | **2025** |
| **ASSETS** | **Notes** | **NT$** | **NT$** | **US$(Note 6)** |
| CURRENT ASSETS |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | 3, 7, 15, 40 | $36260 | $36944 | $1178 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets at fair value through <br>&nbsp;&nbsp;&nbsp;&nbsp; profit or loss | 3, 4, 8 |  | 3 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets at fair value through other <br>&nbsp;&nbsp;&nbsp;&nbsp; comprehensive income | 3, 4, 9 |  | 19 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Hedging financial assets | 3, 22 | 1 | 3 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract assets | 3, 31 | 8401 | 8576 | 273 |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade notes and accounts receivable, net | 3, 4, 11, 31 | 26026 | 27396 | 873 |
| &nbsp;&nbsp;&nbsp;&nbsp;Receivables from related parties | 40 | 193 | 213 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 3, 4, 12, 31, 41, 42 | 12087 | 13179 | 420 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepayments | 13 | 3138 | 3790 | 121 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current monetary assets | 14, 29, 40 | 23408 | 23468 | 748 |
| &nbsp;&nbsp;&nbsp;&nbsp;Incremental costs of obtaining contracts | 3, 31 | 339 | 339 | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 21, 33, 41 | 3115 | 3441 | 110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets |  | 112968 | 117371 | 3742 |
| NONCURRENT ASSETS |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets at fair value through <br>&nbsp;&nbsp;&nbsp;&nbsp; profit or loss | 3, 4, 8 | 1005 | 1211 | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets at fair value through other <br>&nbsp;&nbsp;&nbsp;&nbsp; comprehensive income | 3, 4, 9 | 4667 | 6787 | 216 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets at amortized cost | 3, 10 | 2000 | 2020 | 64 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments accounted for using equity method | 3, 16 | 8879 | 8264 | 263 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract assets | 3, 31 | 4327 | 4733 | 151 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment | 3, 4, 15, 17, 36, 40, 41, 42 | 289840 | 288165 | 9186 |
| &nbsp;&nbsp;&nbsp;&nbsp;Right-of-use assets | 3, 4, 18, 40 | 10912 | 10764 | 343 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment properties | 3, 4, 19 | 12302 | 12420 | 396 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible assets | 3, 4, 20, 40 | 66283 | 59762 | 1905 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax assets | 3, 15, 33 | 1661 | 1782 | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;Incremental costs of obtaining contracts | 3, 31 | 1222 | 1109 | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net defined benefit assets | 3, 4, 29 | 8884 | 9866 | 315 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepayments | 13, 42 | 4461 | 5931 | 189 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other noncurrent assets | 21, 41, 42 | 4886 | 5495 | 175 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noncurrent assets |  | 421329 | 418309 | 13334 |
| TOTAL |  | $534297 | $535680 | $17076 |

---

(Continued)

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**CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS** 

**December 31, 2024 and 2025**

**(In Millions of New Taiwan or U.S. Dollars)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **2024** | **2025** | **2025** |
| **LIABILITIES AND EQUITY** | **Notes** | **NT$** | **NT$** | **US$(Note 6)** |
| CURRENT LIABILITIES |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term loans | 15, 23 | $215 | $340 | $11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial liabilitie at fair value through <br>&nbsp;&nbsp;&nbsp;&nbsp; profit or loss | 3, 4, 8 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Hedging financial liabilities | 3, 22 | 2 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities | 3, 31, 42 | 16301 | 21296 | 678 |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade notes and accounts payable | 26 | 17743 | 15923 | 508 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payables to related parties | 40 | 480 | 177 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current tax liabilities | 3, 33 | 6822 | 7346 | 234 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | 3, 4, 18, 36, 40 | 3558 | 3890 | 124 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other payables | 27, 36 | 26581 | 28716 | 914 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provisions | 3, 28 | 442 | 525 | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term loans | 3, 24 ,25, 41 | 8803 | 1900 | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities |  | 1050 | 957 | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities |  | 81997 | 81070 | 2584 |
| NONCURRENT LIABILITIES |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term loans | 3, 24, 41 | 1631 | 1600 | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;Bonds payable | 3, 25 | 21689 | 23288 | 743 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities | 3, 31, 42 | 7541 | 6567 | 209 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax liabilities | 3, 33 | 2658 | 2829 | 90 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provisions | 3, 28 | 535 | 560 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities | 3, 4, 18, 36, 40 | 7334 | 7001 | 223 |
| &nbsp;&nbsp;&nbsp;&nbsp;Customers' deposits | 40 | 5311 | 5262 | 168 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net defined benefit liabilities | 3, 4, 29 | 2107 | 2329 | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other noncurrent liabilities |  | 7688 | 6703 | 214 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noncurrent liabilities |  | 56494 | 56139 | 1790 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities |  | 138491 | 137209 | 4374 |
| EQUITY ATTRIBUTABLE TO <br> STOCKHOLDERS OF THE PARENT |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stocks |  | 77574 | 77574 | 2473 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital |  | 150054 | 150923 | 4811 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal reserve |  | 77574 | 77574 | 2473 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Special reserve |  | 2676 | 2676 | 85 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unappropriated earnings |  | 74362 | 74364 | 2371 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total retained earnings |  | 154612 | 154614 | 4929 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others |  | 586 | 1020 | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity attributable to stockholders<br> of the parent | 15, 30 | 382826 | 384131 | 12245 |
| NONCONTROLLING INTERESTS | 15, 30 | 12980 | 14340 | 457 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity |  | 395806 | 398471 | 12702 |
| TOTAL |  | $534297 | $535680 | $17076 |

---

(Concluded)

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, 2023, 2024 and 2025** 

**(In Millions of New Taiwan or U.S. Dollars, Except Earnings Per Share That Are in New Taiwan or U.S. Dollars)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2023** | **2024** | **2025** | **2025** |
|  | **Notes** | **NT$** | **NT$** | **NT$** | **US$(Note 6)** |
| REVENUES | 3, 31, 40, 44 | $223199 | $229968 | $236114 | $7527 |
| OPERATING COSTS | 3, 12, 29, 31, 32, 40 | 141767 | 146583 | 149145 | 4754 |
| GROSS PROFIT |  | 81432 | 83385 | 86969 | 2773 |
| OPERATING EXPENSES |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketing |  | 23599 | 25104 | 26019 | 829 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative |  | 6801 | 7175 | 7718 | 246 |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development |  | 3892 | 4167 | 4362 | 139 |
| &nbsp;&nbsp;&nbsp;&nbsp;Expected credit loss |  | 152 | 188 | 209 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 3, 11, 29, 32, 40 | 34444 | 36634 | 38308 | 1221 |
| OTHER INCOME AND EXPENSES | 17, 19, 32, 44 | (635) | 122 | (112) | (4) |
| INCOME FROM OPERATIONS |  | 46353 | 46873 | 48549 | 1548 |
| NON-OPERATING INCOME AND EXPENSES |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 40, 44 | 618 | 781 | 904 | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income | 9, 32, 40 | 382 | 463 | 492 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other gains and losses | 15, 16, 32, 39, 40 | (279) | (94) | 627 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 18, 32, 40, 44 | (319) | (339) | (370) | (12) |
| &nbsp;&nbsp;&nbsp;&nbsp;Share of profits of associates and joint <br>&nbsp;&nbsp;&nbsp;&nbsp; ventures accounted for using equity <br>&nbsp;&nbsp;&nbsp;&nbsp; method | 16, 44 | 253 | 157 | 65 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-operating income and <br>&nbsp;&nbsp;&nbsp;&nbsp; expenses |  | 655 | 968 | 1718 | 55 |
| INCOME BEFORE INCOME TAX |  | 47008 | 47841 | 50267 | 1603 |
| INCOME TAX EXPENSE | 3, 33 | 8947 | 9333 | 9776 | 312 |
| NET INCOME |  | 38061 | 38508 | 40491 | 1291 |
| TOTAL OTHER COMPREHENSIVE <br>&nbsp;&nbsp;&nbsp;&nbsp; INCOME (LOSS) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Items that will not be reclassified to <br>&nbsp;&nbsp;&nbsp;&nbsp; profit or loss: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remeasurements of defined benefit <br>&nbsp;&nbsp;&nbsp;&nbsp; pension plans | 29 | 157 | 2255 | 98 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain or loss on investments <br>&nbsp;&nbsp;&nbsp;&nbsp; in equity instruments at fair value <br>&nbsp;&nbsp;&nbsp;&nbsp; through other comprehensive income | 3, 30, 39 | 619 | 48 | 620 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain or loss on hedging instruments <br>&nbsp;&nbsp;&nbsp;&nbsp; subject to basis adjustment | 3, 22 | (13) | (1) | 4 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share of other comprehensive income <br>&nbsp;&nbsp;&nbsp;&nbsp; of associates and joint ventures | 3, 16, 30 | 6 | 14 | 10 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax relating to items that will <br>&nbsp;&nbsp;&nbsp;&nbsp; not be reclassified to profit or loss | 33 | (31) | (451) | (20) | (1) |
|  |  | 738 | 1865 | 712 | 22 |

---

(Continued)

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**CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME**

**YEARS ENDED DECEMBER 31, 2023, 2024 and 2025** 

**(In Millions of New Taiwan or U.S. Dollars, Except Earnings Per Share That Are in New Taiwan or U.S. Dollars)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **2023** | **2024** | **2025** | **2025** |
|  | **Notes** | **NT$** | **NT$** | **NT$** | **US$(Note 6)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Items that may be reclassified subsequently to <br>&nbsp;&nbsp;&nbsp;&nbsp; profit or loss: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exchange differences arising from the <br>&nbsp;&nbsp;&nbsp;&nbsp; translation of the foreign <br>&nbsp;&nbsp;&nbsp;&nbsp; operations |  | $(46) | $192 | $(218) | $(6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share of other comprehensive income <br>&nbsp;&nbsp;&nbsp;&nbsp; (loss) of associates and joint ventures | 16 | (23) | 24 | 12 |  |
|  |  | (69) | 216 | (206) | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other comprehensive income, <br>&nbsp;&nbsp;&nbsp;&nbsp; net of income tax |  | 669 | 2081 | 506 | 16 |
| TOTAL COMPREHENSIVE INCOME |  | $38730 | $40589 | $40997 | $1307 |
| NET INCOME ATTRIBUTABLE TO |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stockholders of the parent |  | $36958 | $37189 | $38705 | $1234 |
| &nbsp;&nbsp;&nbsp;&nbsp;Noncontrolling interests |  | 1103 | 1319 | 1786 | 57 |
|  |  | $38061 | $38508 | $40491 | $1291 |
| COMPREHENSIVE INCOME<br>&nbsp;&nbsp;&nbsp;&nbsp; ATTRIBUTABLE TO |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stockholders of the parent |  | $37658 | $39223 | $39223 | $1250 |
| &nbsp;&nbsp;&nbsp;&nbsp;Noncontrolling interests |  | 1072 | 1366 | 1774 | 57 |
|  |  | $38730 | $40589 | $40997 | $1307 |
| EARNINGS PER SHARE | 34 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic |  | $4.76 | $4.79 | $4.99 | $0.16 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted |  | $4.76 | $4.78 | $4.98 | $0.16 |
| EARNINGS PER EQUIVALENT ADS |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic |  | $47.64 | $47.94 | $49.89 | $1.59 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted |  | $47.58 | $47.83 | $49.77 | $1.59 |

---

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

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**CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY**

**YEARS ENDED DECEMBER 31, 2023, 2024 and 2025**

**(In Millions of New Taiwan or U.S. Dollars)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Equity Attributable to Stockholders of the Parent** | **Equity Attributable to Stockholders of the Parent** | **Equity Attributable to Stockholders of the Parent** | **Equity Attributable to Stockholders of the Parent** | **Equity Attributable to Stockholders of the Parent** | **Equity Attributable to Stockholders of the Parent** | **Equity Attributable to Stockholders of the Parent** | **Equity Attributable to Stockholders of the Parent** | **Equity Attributable to Stockholders of the Parent** | **Equity Attributable to Stockholders of the Parent** | **Equity Attributable to Stockholders of the Parent** |  |  |
|  |  |  | **Retained Earnings** | **Retained Earnings** | **Retained Earnings** | **Retained Earnings** | **Others** | **Others** | **Others** | **Others** |  |  |  |
|  | **Common Stocks** | **Additional <br>Paid-in <br>Capital** | **Legal <br>Reserve** | **Special <br>Reserve** | **Unappropriated <br>Earnings** | **Total <br>Retained <br>Earnings** | **Exchange <br>Differences <br>Arising from <br>the <br>Translation of <br>the Foreign <br>Operations** | **Unrealized <br>Gain or Loss <br>on Financial <br>Assets at Fair <br>Value through <br>Other <br>Comprehensive <br>Income** | **Gain or Loss <br>on Hedging <br>Instruments** | **Total Others** | **Total Equity <br>Attributable <br>to <br>Stockholders <br>of the Parent** | **Noncontrolling <br>Interests** | **Total <br>Equity** |
|  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
| BALANCE, JANUARY 1, 2023 | $77574 | $149844 | $77574 | $3084 | $71268 | $151926 | $(111) | $(125) | $13 | $(223) | $379121 | $12408 | $391529 |
| Appropriation of 2022 earnings |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Special reserve |  |  |  | (185) | 185 |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash dividends distributed by Chunghwa |  |  |  |  | (36476) | (36476) |  |  |  |  | (36476) |  | (36476) |
| Cash dividends distributed by subsidiaries |  |  |  |  |  |  |  |  |  |  |  | (1092) | (1092) |
| Unclaimed dividend |  | 2 |  |  |  |  |  |  |  |  | 2 |  | 2 |
| Change in additional paid-in capital from<br> investments in associates and joint<br> ventures accounted for using equity<br> method |  | (26) |  |  |  |  |  |  |  |  | (26) |  | (26) |
| Actual acquisition of interests in subsidiaries |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Net income for the year ended December 31, 2023 |  |  |  |  | 36958 | 36958 |  |  |  |  | 36958 | 1103 | 38061 |
| Other comprehensive income (loss) for the<br>&nbsp;&nbsp;&nbsp;&nbsp; year ended December 31, 2023 |  |  |  |  | 124 | 124 | (57) | 646 | (13) | 576 | 700 | (31) | 669 |
| Total comprehensive income (loss) for the year<br>&nbsp;&nbsp;&nbsp;&nbsp; ended December 31, 2023 |  |  |  |  | 37082 | 37082 | (57) | 646 | (13) | 576 | 37658 | 1072 | 38730 |
| Changes in equities of subsidiaries |  | 8 |  |  |  |  |  |  |  |  | 8 | 25 | 33 |
| Net increase in noncontrolling interests |  |  |  |  |  |  |  |  |  |  |  | 19 | 19 |
| BALANCE, DECEMBER 31, 2023 | 77574 | 149828 | 77574 | 2899 | 72059 | 152532 | (168) | 521 |  | 353 | 380287 | 12432 | 392719 |
| Appropriation of 2023 earnings |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Special reserve |  |  |  | (223) | 223 |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash dividends distributed by Chunghwa |  |  |  |  | (36910) | (36910) |  |  |  |  | (36910) |  | (36910) |
| Cash dividends distributed by subsidiaries |  |  |  |  |  |  |  |  |  |  |  | (898) | (898) |
| Unclaimed dividend |  | 2 |  |  |  |  |  |  |  |  | 2 |  | 2 |
| Actual disposal of interests in subsidiaries |  | 224 |  |  |  |  |  |  |  |  | 224 | 35 | 259 |
| Net income for the year ended December 31, 2024 |  |  |  |  | 37189 | 37189 |  |  |  |  | 37189 | 1319 | 38508 |
| Other comprehensive income (loss) for the<br>&nbsp;&nbsp;&nbsp;&nbsp; year ended December 31, 2024 |  |  |  |  | 1801 | 1801 | 191 | 43 | (1) | 233 | 2034 | 47 | 2081 |
| Total comprehensive income (loss) for the year<br>&nbsp;&nbsp;&nbsp;&nbsp; ended December 31, 2024 |  |  |  |  | 38990 | 38990 | 191 | 43 | (1) | 233 | 39223 | 1366 | 40589 |
| Changes in equities of subsidiaries |  |  |  |  |  |  |  |  |  |  |  | 45 | 45 |
| BALANCE, DECEMBER 31, 2024 | 77574 | 150054 | 77574 | 2676 | 74362 | 154612 | 23 | 564 | (1) | 586 | 382826 | 12980 | 395806 |
| Appropriation of 2024 earnings |  |  |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash dividends distributed by Chunghwa |  |  |  |  | (38787) | (38787) |  |  |  |  | (38787) |  | (38787) |
| Cash dividends distributed by subsidiaries |  |  |  |  |  |  |  |  |  |  |  | (1307) | (1307) |
| Unclaimed dividend |  | 2 |  |  |  |  |  |  |  |  | 2 |  | 2 |
| Change in additional paid-in capital from<br> investments in associates and joint<br> ventures accounted for using equity<br> method |  | (1) |  |  |  |  |  |  |  |  | (1) |  | (1) |
| Actual disposal of interests in subsidiaries |  | 236 |  |  |  |  |  |  |  |  | 236 | 75 | 311 |
| Change in additional paid-in capital for <br> not participating in the capital increase <br> of subsidiaries |  | 630 |  |  |  |  |  |  |  |  | 630 | 759 | 1389 |
| Net income for the year ended December 31, 2025 |  |  |  |  | 38705 | 38705 |  |  |  |  | 38705 | 1786 | 40491 |
| Other comprehensive income (loss) for the<br>&nbsp;&nbsp;&nbsp;&nbsp; year ended December 31, 2025 |  |  |  |  | 84 | 84 | (215) | 645 | 4 | 434 | 518 | (12) | 506 |
| Total comprehensive income (loss) for the year<br>&nbsp;&nbsp;&nbsp;&nbsp; ended December 31, 2025 |  |  |  |  | 38789 | 38789 | (215) | 645 | 4 | 434 | 39223 | 1774 | 40997 |
| Disposal of investments in equity instruments <br>&nbsp;&nbsp;&nbsp;&nbsp; at fair value through other comprehensive income |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Changes in equities of subsidiaries |  | 2 |  |  |  |  |  |  |  |  | 2 | 39 | 41 |
| Net increase in noncontrolling interests |  |  |  |  |  |  |  |  |  |  |  | 20 | 20 |
| BALANCE, DECEMBER 31, 2025 | $77574 | $150923 | $77574 | $2676 | $74364 | $154614 | $(192) | $1209 | $3 | $1020 | $384131 | $14340 | $398471 |
| BALANCE, DECEMBER 31, 2025<br> (IN MILLIONS OF US$ - Note 6) | $2473 | $4811 | $2473 | $85 | $2371 | $4929 | $(6) | $38 | $— | $32 | $12245 | $457 | $12702 |

---

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

------

**CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**YEARS ENDED DECEMBER 31, 2023, 2024 and 2025** 

**(In Millions of New Taiwan or U.S. Dollars)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2023** | **2024** | **2025** | **2025** |
|  | **NT$** | **NT$** | **NT$** | **US$(Note 6)** |
| CASH FLOWS FROM OPERATING ACTIVITIES |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income before income tax | $47008 | $47841 | $50267 | $1603 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments for: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 32956 | 32920 | 33550 | 1069 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization | 6699 | 6699 | 6666 | 212 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of incremental costs of obtaining contracts | 856 | 906 | 945 | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expected credit loss | 152 | 188 | 209 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Valuation loss on financial assets and liabilities <br>&nbsp;&nbsp;&nbsp;&nbsp; at fair value through profit or loss, net | 98 | 147 | 92 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 319 | 339 | 370 | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | (618) | (781) | (904) | (29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividend income | (167) | (240) | (281) | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensation cost of share-based payment transactions | 8 | 8 | 10 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share of profits of associates and joint ventures <br>&nbsp;&nbsp;&nbsp;&nbsp; accounted for using equity method | (253) | (157) | (65) | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of property, plant and equipment |  | 17 | 28 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal of intangible assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal of financial instruments |  | (1) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal of investments accounted for using <br>&nbsp;&nbsp;&nbsp;&nbsp; equity method | (6) | (85) | (733) | (23) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for impairment loss and obsolescence of <br>&nbsp;&nbsp;&nbsp;&nbsp; inventory | 23 | 60 | 34 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss on property, plant and equipment | 299 |  | 112 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss (reversal of impairment loss) on <br>&nbsp;&nbsp;&nbsp;&nbsp; investment properties | 336 | (139) | (28) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal of subsidiaries |  |  | (15) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others | (60) | (69) | (20) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract assets | (1291) | (2249) | (594) | (19) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade notes and accounts receivable | (287) | (1322) | (1580) | (50) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivables from related parties | (3) | (115) | (20) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (178) | (626) | (1133) | (36) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepayments | (315) | (29) | (411) | (13) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 733 | (293) | (328) | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current monetary assets | 107 | 64 | (1373) | (44) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incremental cost of obtaining contracts | (1026) | (1317) | (832) | (27) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities | 584 | 2194 | 4029 | 128 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade notes and accounts payable | (2033) | 3347 | (1809) | (58) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payables to related parties | (154) | 95 | (303) | (10) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other payables | 562 | 1540 | 1801 | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provisions | 373 | 153 | 108 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net defined benefit plans | (728) | (657) | (663) | (21) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | (14) | 78 | (96) | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash generated from operations | 83980 | 88516 | 87033 | 2775 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interests paid | (314) | (333) | (364) | (12) |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid | (9107) | (8939) | (9223) | (294) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 74559 | 79244 | 77446 | 2469 |

---

(Continued)

------

**CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**YEARS ENDED DECEMBER 31, 2023, 2024 and 2025** 

**(In Millions of New Taiwan or U.S. Dollars)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2023** | **2024** | **2025** | **2025** |
|  | **NT$** | **NT$** | **NT$** | **US$(Note 6)** |
| CASH FLOWS FROM INVESTING ACTIVITIES |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of financial assets at fair value through <br>&nbsp;&nbsp;&nbsp;&nbsp; other comprehensive income | $(305) | $(313) | $(1518) | $(48) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from disposal of financial assets at fair <br>&nbsp;&nbsp;&nbsp;&nbsp; value through other comprehensive income |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from capital reduction of financial <br>&nbsp;&nbsp;&nbsp;&nbsp; assets at fair value through other comprehensive <br>&nbsp;&nbsp;&nbsp;&nbsp; income |  | 112 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of financial assets at amortized cost |  | (2000) | (20) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of financial assets at fair <br>&nbsp;&nbsp;&nbsp;&nbsp; value through profit or loss | (133) | (162) | (326) | (10) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from disposal of financial assets at fair <br>&nbsp;&nbsp;&nbsp;&nbsp; value through profit or loss |  | 5 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of investments accounted for using <br>&nbsp;&nbsp;&nbsp;&nbsp; equity method | (1555) | (776) | (20) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from disposal of investments<br>&nbsp;&nbsp;&nbsp;&nbsp; accounted for using equity method |  |  | 886 | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash outflow from loss of control of subsidiaries |  |  | (9) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of property, plant and equipment | (30741) | (28756) | (27698) | (883) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from disposal of property, plant and <br>&nbsp;&nbsp;&nbsp;&nbsp; equipment | 19 | 13 | 21 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of intangible assets | (237) | (234) | (144) | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from disposal of intangible assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of investment properties | (54) | (4) | (74) | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of time deposits, negotiable certificates<br>&nbsp;&nbsp;&nbsp;&nbsp; of deposit and commercial paper with maturities<br>&nbsp;&nbsp;&nbsp;&nbsp; of more than three months | (45239) | (72915) | (54079) | (1724) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from disposal of time deposits, negotiable <br>&nbsp;&nbsp;&nbsp;&nbsp; certificates of deposit and commercial paper with <br>&nbsp;&nbsp;&nbsp;&nbsp; maturities of more than three months | 28577 | 69886 | 55182 | 1759 |
| &nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in other noncurrent assets | 166 | (258) | (623) | (19) |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase in prepayments for leases | (1729) | (1400) | (1712) | (55) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interests received | 568 | 764 | 912 | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends received | 467 | 663 | 912 | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from capital reduction and profit <br>&nbsp;&nbsp;&nbsp;&nbsp; distribution of financial assets at fair value<br>&nbsp;&nbsp;&nbsp;&nbsp; through profit or loss | 22 | 43 | 25 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (50174) | (35332) | (28285) | (901) |

---

(Continued)

------

**CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**YEARS ENDED DECEMBER 31, 2023, 2024 and 2025** 

**(In Millions of New Taiwan or U.S. Dollars)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2023** | **2024** | **2025** | **2025** |
|  | **NT$** | **NT$** | **NT$** | **US$(Note 6)** |
| CASH FLOWS FROM FINANCING ACTIVITIES |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from short-term loans | $2590 | $700 | $3745 | $119 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayments of short-term loans | (2727) | (1070) | (3555) | (113) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of bonds |  |  | 3500 | 112 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayments of bonds payable |  |  | (8800) | (281) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments for transaction costs attributable to the <br>&nbsp;&nbsp;&nbsp;&nbsp; issuance of bonds |  |  | (5) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from long-term loans |  | 35 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayments of long-term loans |  |  | (35) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in customers' deposits | 134 | (9) | (39) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments for the principal of lease liabilities | (3884) | (3944) | (4135) | (132) |
| &nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in other noncurrent liabilities | 680 | 282 | (985) | (31) |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash dividends paid | (36476) | (36910) | (38787) | (1236) |
| &nbsp;&nbsp;&nbsp;&nbsp;Partial disposal of interests in subsidiaries without <br>&nbsp;&nbsp;&nbsp;&nbsp; losing control |  | 259 | 311 | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash dividends distributed to noncontrolling <br>&nbsp;&nbsp;&nbsp;&nbsp; interests | (1092) | (898) | (1094) | (35) |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in other noncontrolling interests | 43 | 37 | 1420 | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unclaimed dividend | 2 | 2 | 2 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (40730) | (41516) | (48457) | (1545) |
| EFFECT OF EXCHANGE RATE CHANGES ON<br> CASH AND CASH EQUIVALENTS | (24) | 40 | (20) | (1) |
| NET INCREASE (DECREASE) IN CASH AND <br> CASH EQUIVALENTS | (16369) | 2436 | 684 | 22 |
| CASH AND CASH EQUIVALENTS, BEGINNING<br> OF THE YEAR | 50193 | 33824 | 36260 | 1156 |
| CASH AND CASH EQUIVALENTS, END OF THE<br> YEAR | $33824 | $36260 | $36944 | $1178 |

---

(Concluded)

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

------

**CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(In Millions 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.

**2.** **APPROVAL OF FINANCIAL STATEMENTS**

The consolidated financial statements were authorized for issue by the management on March 30, 2026.

**3.** **SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION**

**Statement of Compliance**

The accompanying consolidated financial statements have been prepared in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board (collectively, "IFRSs").

**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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Assets held primarily for the purpose of trading;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Liabilities held primarily for the purpose of trading;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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") , a wholly owned subsidiary of the Company, 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**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

<u>Attribution of total comprehensive income to noncontrolling interests</u>

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.

<u>Changes in the Company's ownership interests in subsidiaries</u>

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.

<u>Loss of control of subsidiaries</u>

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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.The subsidiaries in the consolidated financial statements

The detail information of the subsidiaries at the end of reporting period was as follows:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  | **Percentage of Ownership interests** | **Percentage of Ownership interests** |  |
|  |  |  | **December 31** | **December 31** |  |
| **Name of Investor** | **Name of Investee** | **Main Businesses and Products** | **2024** | **2025** | **Note** |
| Chunghwa Telecom <br>&nbsp;&nbsp;&nbsp;&nbsp; Co., Ltd. | Senao International Co., Ltd. <br>&nbsp;&nbsp;&nbsp;&nbsp; ("SENAO") | Handset and peripherals retailer, sales of <br> CHT mobile phone plans as an agent | 28 | 28 | a) |
|  | Light Era Development Co., <br>&nbsp;&nbsp;&nbsp;&nbsp; Ltd. ("LED") | Planning and development of real estate <br> and intelligent buildings, and property <br> management | 100 | 100 |  |
|  | Donghwa Telecom Co., Ltd. <br>&nbsp;&nbsp;&nbsp;&nbsp; ("DHT") | International private leased circuit, IP<br> VPN service, and IP transit services | 100 | 100 |  |
|  | Chunghwa Telecom <br>&nbsp;&nbsp;&nbsp;&nbsp; Singapore Pte., <br>&nbsp;&nbsp;&nbsp;&nbsp; Ltd. ("CHTS") | International private leased circuit, IP<br> VPN service, and IP transit services | 100 | 100 |  |
|  | Chunghwa System <br>&nbsp;&nbsp;&nbsp;&nbsp; Integration <br>&nbsp;&nbsp;&nbsp;&nbsp; Co., Ltd. <br>&nbsp;&nbsp;&nbsp;&nbsp; ("CHSI") | Providing system integration services and <br> telecommunications equipment | 100 | 100 |  |
|  | Chunghwa Investment Co., <br>&nbsp;&nbsp;&nbsp;&nbsp; Ltd. ("CHI") | Investment | 89 | 89 |  |
|  | CHIEF Telecom Inc. <br>&nbsp;&nbsp;&nbsp;&nbsp; ("CHIEF") | Network integration, internet data center <br> ("IDC"), communications <br> integration and cloud application <br> services | 56 | 56 | b) |
|  | CHYP Multimedia Marketing <br>&nbsp;&nbsp;&nbsp;&nbsp; & Communications <br>&nbsp;&nbsp;&nbsp;&nbsp; Co., Ltd. ("CHYP") | Digital information supply services and <br> advertisement services | 100 | 100 |  |
|  | Prime Asia Investments <br>&nbsp;&nbsp;&nbsp;&nbsp; Group Ltd. ("Prime Asia") | Investment | 100 | 100 |  |
|  | Spring House Entertainment <br>&nbsp;&nbsp;&nbsp;&nbsp; Tech. Inc. ("SHE") | Software design services, internet contents <br> production and play, and motion<br> picture production and distribution | 56 | 56 |  |
|  | Chunghwa Telecom Global,<br>&nbsp;&nbsp;&nbsp;&nbsp; Inc. ("CHTG") | International private leased circuit,<br> internet services, and transit services | 100 | 100 |  |
|  | Chunghwa Telecom Vietnam<br>&nbsp;&nbsp;&nbsp;&nbsp; Co., Ltd. ("CHTV") | Intelligent energy saving solutions, <br> international circuit, and <br> information and communication <br> technology ("ICT") services | 100 | 100 |  |
|  | Smartfun Digital Co., Ltd. <br>&nbsp;&nbsp;&nbsp;&nbsp; ("SFD") | Providing diversified family education<br> digital services | 65 | 65 |  |
|  | Chunghwa Telecom Japan <br>&nbsp;&nbsp;&nbsp;&nbsp; Co., Ltd. ("CHTJ") | International private leased circuit, IP<br> VPN service, and IP transit services | 100 | 100 |  |
|  | Chunghwa Sochamp <br>&nbsp;&nbsp;&nbsp;&nbsp; Technology Inc. <br>&nbsp;&nbsp;&nbsp;&nbsp; ("CHST") | Design, development and production of <br> Automatic License Plate Recognition <br> software and hardware | 37 |  | c) |
|  | Honghwa International Co.,<br>&nbsp;&nbsp;&nbsp;&nbsp; Ltd. ("HHI") | Telecommunications engineering, sales <br> agent of mobile phone plan application <br> and other business services, etc. | 100 | 100 |  |
|  | Chunghwa Leading <br>&nbsp;&nbsp;&nbsp;&nbsp; Photonics <br>&nbsp;&nbsp;&nbsp;&nbsp; Tech Co., Ltd.<br>&nbsp;&nbsp;&nbsp;&nbsp; ("CLPT") | Production and sale of electronic <br> components and finished products | 70 | 62 | d) |
|  | Chunghwa Telecom <br>&nbsp;&nbsp;&nbsp;&nbsp; (Thailand) Co., Ltd. <br>&nbsp;&nbsp;&nbsp;&nbsp; ("CHTT") | International private leased circuit, IP<br> VPN service, ICT and <br> cloud VAS services | 100 | 100 |  |

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(Continued)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  | **Percentage of Ownership interests** | **Percentage of Ownership interests** |  |
|  |  |  | **December 31** | **December 31** |  |
| **Name of Investor** | **Name of Investee** | **Main Businesses and Products** | **2024** | **2025** | **Note** |
| Chunghwa Telecom <br>&nbsp;&nbsp;&nbsp;&nbsp; Co., Ltd. | CHT Security Co., Ltd. <br>&nbsp;&nbsp;&nbsp;&nbsp; ("CHTSC") | Computing equipment installation, <br> wholesale of computing and business <br> machinery equipment and software, <br> management consulting services, <br> data processing services, digital <br> information supply services and <br> internet identity services | 63 | 57 | e) |
|  | International Integrated <br>&nbsp;&nbsp;&nbsp;&nbsp; Systems, Inc. ("IISI") | IT solution provider, IT application <br> consultation, system integration <br> and package solution | 50 | 45 | f) |
|  | Chunghwa Digital Cultural <br>&nbsp;&nbsp;&nbsp;&nbsp; and Creative Capital<br>&nbsp;&nbsp;&nbsp;&nbsp; Co., Ltd <br>&nbsp;&nbsp;&nbsp;&nbsp; ("CDCC Capital") | Investment and management consulting | 100 | 100 | g) |
|  | Chunghwa Telecom Europe <br>&nbsp;&nbsp;&nbsp;&nbsp; GmbH ("CHTEU") | International private leased circuit,<br> internet services, transit services and<br> ICT services | 100 | 100 | h) |
|  | CHT InventAI Co., Ltd.<br>&nbsp;&nbsp;&nbsp;&nbsp; ("CHAI") | AI software, system development <br> application services, <br>&nbsp;&nbsp;&nbsp;&nbsp; and enterprise consulting |  | 100 | i) |
| Senao International Co., <br>&nbsp;&nbsp;&nbsp;&nbsp; Ltd. | Youth Co., Ltd. ("Youth") | Sale of information and communication <br> technologies products | 96 | 96 |  |
|  | Aval Technologies Co., Ltd. <br>&nbsp;&nbsp;&nbsp;&nbsp; ("Aval") | Sale of information and communication <br> technologies products | 100 | 100 |  |
|  | Senyoung Insurance Agent <br>&nbsp;&nbsp;&nbsp;&nbsp; Co., Ltd. <br>&nbsp;&nbsp;&nbsp;&nbsp; ("SENYOUNG") | Property and liability insurance agency | 100 | 100 |  |
| Youth Co., Ltd. | ISPOT Co., Ltd. ("ISPOT") | Sale of information and communication <br> technologies products | 100 | 100 |  |
| Aval Technologies Co., <br>&nbsp;&nbsp;&nbsp;&nbsp; Ltd. | Wiin Technology Co., Ltd. <br>&nbsp;&nbsp;&nbsp;&nbsp; ("Wiin") | Sale of information and communication <br> technologies products | 100 | 100 |  |
| CHIEF Telecom Inc. | Unigate Telecom Inc.<br>&nbsp;&nbsp;&nbsp;&nbsp; ("Unigate") | Telecommunications and internet service | 100 | 100 |  |
|  | Chief International Corp. <br>&nbsp;&nbsp;&nbsp;&nbsp; ("CIC") | Telecommunications and internet service | 100 | 100 |  |
|  | Shanghai Chief Telecom Co., <br>&nbsp;&nbsp;&nbsp;&nbsp; Ltd. ("SCT") | Telecommunications and internet service | 49 | 49 | j) |
| Chunghwa Investment <br>&nbsp;&nbsp;&nbsp;&nbsp; Co., Ltd. | Chunghwa Precision Test <br>&nbsp;&nbsp;&nbsp;&nbsp; Tech. Co., Ltd. ("CHPT") | Production and sale of semiconductor <br> testing components and printed <br> circuit board | 34 | 34 | k) |
| Chunghwa Precision Test <br>&nbsp;&nbsp;&nbsp;&nbsp; Tech. Co., Ltd. | Chunghwa Precision Test <br>&nbsp;&nbsp;&nbsp;&nbsp; Tech. USA Corporation <br>&nbsp;&nbsp;&nbsp;&nbsp; ("CHPT (US)") | Design and after-sale services of <br> semiconductor testing components <br> and printed circuit board | 100 | 100 |  |
|  | CHPT Japan Co., Ltd. <br>&nbsp;&nbsp;&nbsp;&nbsp; ("CHPT (JP)") | Related services of electronic parts, <br> machinery processed products <br> and printed circuit board | 100 | 100 |  |
|  | Chunghwa Precision Test <br>&nbsp;&nbsp;&nbsp;&nbsp; Tech. International, Ltd.<br>&nbsp;&nbsp;&nbsp;&nbsp; ("CHPT (International)") | Wholesale and retail of electronic <br> materials, and investment | 100 | 100 |  |
|  | TestPro Investment Co., Ltd. <br>&nbsp;&nbsp;&nbsp;&nbsp; ("TestPro") | Investment | 100 | 100 |  |

---

(Continued)

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  | **Percentage of Ownership interests** | **Percentage of Ownership interests** |  |
|  |  |  | **December 31** | **December 31** |  |
| **Name of Investor** | **Name of Investee** | **Main Businesses and Products** | **2024** | **2025** | **Note** |
| TestPro Investment <br>&nbsp;&nbsp;&nbsp;&nbsp; Co., Ltd. | NavCore Tech. Co., Ltd. <br>&nbsp;&nbsp;&nbsp;&nbsp; ("NavCore") | Sale and manufacturing of smart <br> equipment, smart factory software <br> and hardware integration and <br> technical consulting service | 54 | 54 |  |
| Prime Asia Investments <br>&nbsp;&nbsp;&nbsp;&nbsp; Group Ltd. | Chunghwa Hsingta Co., Ltd. <br>&nbsp;&nbsp;&nbsp;&nbsp; ("CHC") | Investment | 100 | 100 |  |
| Chunghwa Precision <br>&nbsp;&nbsp;&nbsp;&nbsp; Test Tech. <br>&nbsp;&nbsp;&nbsp;&nbsp; International, Ltd. | Shanghai Taihua Electronic <br>&nbsp;&nbsp;&nbsp;&nbsp; Technology Limited <br>&nbsp;&nbsp;&nbsp;&nbsp; ("STET") | Design of printed circuit board and related <br> consultation service | 100 | 100 |  |
|  | Su Zhou Precision Test Tech. <br>&nbsp;&nbsp;&nbsp;&nbsp; Ltd. ("SZPT") | Assembly processed of circuit board, <br> design of printed circuit board and <br> related consultation service | 100 | 100 |  |
| International Integrated <br>&nbsp;&nbsp;&nbsp;&nbsp; Systems, Inc. | Unitronics Technology Corp. <br>&nbsp;&nbsp;&nbsp;&nbsp; ("UTC") | Development and maintenance of <br> information system | 100 | 100 |  |
| Chunghwa Telecom <br>&nbsp;&nbsp;&nbsp;&nbsp; Singapore Pte., Ltd. | Chunghwa Telecom Malaysia <br>&nbsp;&nbsp;&nbsp;&nbsp; SDN. BHD. ("CHTM") | International private leased circuit,<br> IP VPN service, and ICT services |  | 100 | l) |

---

(Concluded)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 resigned all of its board seats in CHST, waived its right to have majority seats in the Board of Directors under the investment agreement since January 2025. As a result, the Company lost control over CHST and recognized CHST as an investment in associate. Please refer to Note 15(c) for details.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g)Chunghwa invested and established CDCC Capital in February 2024. Chunghwa obtained 100% ownership interest of CDCC Capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h)Chunghwa invested and established CHTEU in July 2024. Chunghwa obtained 100% ownership interest of CHTEU.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i)Chunghwa invested and established CHAI in October 2025. Chunghwa obtained 100% ownership interest of CHAI.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k)CHI disposed 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l)CHTS established CHTM in June 2025 and obtained 100% ownership interest in CHTM. The share 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.

![img118205201_1.jpg](img118205201_1.jpg)

**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.

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.

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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.

Chunghwa uses New Taiwan dollars (NT$) as the functional currency. 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.

**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.

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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.

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.

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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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis. The regular way of transaction means the purchase or sale of financial assets delivered within the time frame established by regulation or convention in the marketplace.

1)Measurement category

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 39.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Financial assets at amortized cost

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

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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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

**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.

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**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.

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.

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**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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.The Company as lessor

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 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.

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**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**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Current tax

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The current tax is based on taxable profit for the year. Taxable profit differs from profit as reported in the consolidated statements of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Income tax on unappropriated earnings is accrued during the period the earnings arise and adjusted to the extent that distributions are approved by the stockholders in the following year.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 therefore the Company has control over these entities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 11. 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.

Information about the valuation techniques and inputs used in determining the fair value of various assets and liabilities was disclosed in Note 39. 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.

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3)Provision for inventory valuation and obsolescence

Inventories are stated at the lower of cost or net realizable value. Estimates of net realizable value are based on the most reliable evidence available at the time the estimates are made at the end of reporting period. These estimates take into consideration fluctuations of price or cost directly relating to events occurring after the end of the period to the extent that such events confirm conditions existing at the end of the period. Inventory write-downs are 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

In the process of evaluating the potential impairment of tangible and intangible assets, the Company is required to consider internal and external indicators of impairment and make subjective judgments in determining the independent cash flows, useful lives, expected future revenue and expenses related to the specific asset groups within the context of the telecommunication industry. Any changes in these estimates based on changed economic conditions or business strategies could result in significant impairment charges in future periods.

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 AMENDED INTERNATIONAL FINANCIAL REPORTING STANDARDS**

**Amendments to IFRSs and the New Interpretation That Are Mandatorily Effective for the Current Year**

The Company has applied Amendments to IAS 21: Lack of Exchangeability. The application of these amendments has had no impact on the disclosures or amounts recognized in the Company's consolidated financial statements.

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**New and Amended IFRSs in Issue But Not Yet Effective**

The Company has not applied the following new and amended IFRSs that have been issued but are not yet effective.

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

---

Note: The aforementioned new or amended standards or interpretations are effective after fiscal year beginning on or after the effective dates, unless specified otherwise.

"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.

The application of "Amendments to IFRS 9 and IFRS 7: Amendments to the Classification and Measurement of Financial Instruments", "Amendments to IFRS 9 and IFRS 7: Contracts Referencing Nature-Dependent Electricity" and "Amendments to IFRS Accounting Standards: Annual Improvements—Volume 11" will not have material impact on the Company's consolidated financial statements.

As of the date the consolidated financial statements were authorized for issue, the Company is continuously assessing whether the application of "Amendments to IFRS 10 and IAS 28: Sale or Contribution of Assets between an Investor and Its Associate or Joint Venture", "IFRS 18: Presentation and Disclosure in Financial Statements", "IFRS 19: Subsidiaries without Public Accountability: Disclosures" and "Amendments to IAS 21: Translation to a Hyperinflationary Presentation Currency" will have the impact on the Company's financial position and operating result. The Company will disclose the relevant impact when the assessment is completed.

**6.** **U.S. DOLLAR AMOUNTS**

The Company maintains its accounts and expresses its consolidated financial statements in New Taiwan dollars. For readers' convenience only, U.S. dollar amounts presented in the accompanying consolidated financial statements have been translated from New Taiwan dollars as set forth in the statistical release of the Federal Reserve Board of the United States as of December 31, 2025, which was NT$31.37 to US$1.00. The convenience translations should not be construed as representations that the New Taiwan dollar amounts have been, could have been, or could in the future be, converted into U.S. dollars at this or any other rate of exchange.

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**7.** **CASH AND CASH EQUIVALENTS**

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| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Cash |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash on hand | $444 | $310 |
| &nbsp;&nbsp;&nbsp;&nbsp;Bank deposits | 13243 | 19103 |
|  | 13687 | 19413 |
| Cash equivalents (with maturities of less than three months) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial paper | $16887 | $8505 |
| &nbsp;&nbsp;&nbsp;&nbsp;Time deposits | 2884 | 8025 |
| &nbsp;&nbsp;&nbsp;&nbsp;Negotiable certificates of deposit | 2800 | 1000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stimulus vouchers | 2 | 1 |
|  | 22573 | 17531 |
|  | $36260 | $36944 |

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

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| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
| Bank deposits | 0.00%-2.55% | 0.00%-1.98% |
| Commercial paper | 0.95%-1.56% | 0.96%-1.50% |
| Time deposits | 0.01%-4.90% | 0.01%-3.90% |
| Negotiable certificates of deposit | 1.55%-1.70% | 1.64% |

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**8.** **FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS**

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| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| <u>Financial assets-current</u> |  |  |
| Mandatorily measured at FVTPL |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives (not designated for hedge) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forward exchange contracts | $— | $3 |
| <u>Financial assets-noncurrent</u> |  |  |
| Mandatorily measured at FVTPL |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-derivatives |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-listed stocks - domestic | $629 | $615 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-listed stocks - foreign | 32 | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limited partnership - domestic | 307 | 500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other investing agreements | 37 | 70 |
|  | $1005 | $1211 |
| <u>Financial liabilities-current</u> |  |  |
| Held for trading |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives (not designated for hedge) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forward exchange contracts | $— | $— |

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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 million in January 2022. As of December 31, 2025, Chunghwa invested $400 million.

Chunghwa's Board of Directors approved an investment in TRF 1 L.P. at the amount of $300 million in January 2025. As of December 31, 2025, Chunghwa invested $120 million.

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

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| | | | |
|:---|:---|:---|:---|
|  |  | **Maturity** | **Contract<br>Amount** |
|  | **Currency** | **Period** | **(In Millions)** |
| <u>December 31, 2024</u> |  |  |  |
| Forward exchange contracts - buy | NT$/USD | January 2025 | NT$46/USD1 |
| Forward exchange contracts - buy | NT$/EUR | March 2025 | NT$10/EUR0.3 |
| <u>December 31, 2025</u> |  |  |  |
| Forward exchange contracts - buy | NT$/USD | January 2026 | NT$30/USD1 |
| Forward exchange contracts - buy | NT$/EUR | March 2026 | NT$89/EUR2.5 |

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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.

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**9.** **FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME**

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| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| <u>Current</u> |  |  |
| Domestic investments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Listed and emerging stocks | $— | $19 |
| <u>Noncurrent</u> |  |  |
| Domestic investments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Listed and emerging stocks | $126 | $274 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-listed stocks | 3874 | 4924 |
| Foreign investments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Listed and emerging stocks |  | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-listed stocks | 667 | 1566 |
|  | $4667 | $6787 |

---

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 million in November 2025.

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 $0.4 million, 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 $167 million, $240 million and $281 million for the years ended December 31, 2023, 2024 and 2025, respectively, with $167 million, $239 million and $274 million from the outstanding investments on December 31, 2023, 2024 and 2025, respectively.

**10.** **FINANCIAL ASSETS AT AMORTIZED COST - NONCURRENT**

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Corporate bonds | $2000 | $2020 |

---

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

CHTSC acquired the 10-year secured cumulative subordinated corporate bond of Mercuries Life Insurance Co., Ltd. at the amount of $20 million in December 2025.

------

**11.** **TRADE NOTES AND ACCOUNTS RECEIVABLE, NET**

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Trade notes and accounts receivable | $27169 | $28583 |
| Less: Loss allowance | (1143) | (1187) |
|  | $26026 | $27396 |

---

The main credit terms range from 30 to 90 days.

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

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

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

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

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

------

Except for receivables arising from telecommunications business and project business, the Company's remaining accounts receivable are insignificant. Therefore, only Chunghwa's provision matrix arising from telecommunications business and project business is disclosed below:

<u>December 31, 2024</u>

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Not Past<br>Due** | **Past Due<br>Less than<br>30 Days** | **Past Due<br>31 to 60<br>Days** | **Past Due<br>61 to 90<br>Days** | **Past Due<br>91 to 120<br>Days** | **Past Due<br>121 to 180<br>Days** | **Past Due<br>over 180<br>Days** | **Total** |
|  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  |  |  |  | **(In Millions)** | **(In Millions)** |  |  |  |
| <u>Telecommunications<br> business</u> |  |  |  |  |  |  |  |  |
| Expected credit loss rate <br>&nbsp;&nbsp;&nbsp;&nbsp; (Note a) | 0%-1% | 1%-22% | 2%-68% | 11%-84% | 21%-92% | 39%-96% | 100% |  |
| Gross carrying amount | $16477 | $335 | $139 | $75 | $50 | $48 | $606 | $17730 |
| Loss allowance (Lifetime <br>&nbsp;&nbsp;&nbsp;&nbsp; ECL) | (51) | (24) | (34) | (31) | (33) | (34) | (606) | (813) |
| Amortized cost | $16426 | $311 | $105 | $44 | $17 | $14 | $— | $16917 |
| <u>Project business</u> |  |  |  |  |  |  |  |  |
| Expected credit loss rate <br>&nbsp;&nbsp;&nbsp;&nbsp; (Note b) | 0%-5% | 5% | 10% | 30% | 50% | 80% | 100% |  |
| Gross carrying amount | $5548 | $44 | $83 | $3 | $1 | $— | $280 | $5959 |
| Loss allowance (Lifetime <br>&nbsp;&nbsp;&nbsp;&nbsp; ECL) | (3) | (2) | (8) | (1) | (1) |  | (280) | (295) |
| Amortized cost | $5545 | $42 | $75 | $2 | $— | $— | $— | $5664 |

---

<u>December 31, 2025</u>

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Not Past<br>Due** | **Past Due<br>Less than<br>30 Days** | **Past Due<br>31 to 60<br>Days** | **Past Due<br>61 to 90<br>Days** | **Past Due<br>91 to 120<br>Days** | **Past Due<br>121 to 180<br>Days** | **Past Due<br>over 180<br>Days** | **Total** |
|  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  |  |  |  | **(In Millions)** | **(In Millions)** |  |  |  |
| <u>Telecommunications<br> business</u> |  |  |  |  |  |  |  |  |
| Expected credit loss rate <br>&nbsp;&nbsp;&nbsp;&nbsp; (Note a) | 0%-1% | 2%-21% | 2%-67% | 13%-84% | 27%-91% | 55%-96% | 100% |  |
| Gross carrying amount | $16807 | $419 | $173 | $41 | $38 | $29 | $615 | $18122 |
| Loss allowance (Lifetime <br>&nbsp;&nbsp;&nbsp;&nbsp; ECL) | (52) | (27) | (31) | (35) | (31) | (26) | (615) | (817) |
| Amortized cost | $16755 | $392 | $142 | $6 | $7 | $3 | $— | $17305 |
| <u>Project business</u> |  |  |  |  |  |  |  |  |
| Expected credit loss rate <br>&nbsp;&nbsp;&nbsp;&nbsp; (Note b) | 0%-5% | 5% | 10% | 30% | 50% | 80% | 100% |  |
| Gross carrying amount | $5636 | $51 | $6 | $26 | $43 | $— | $286 | $6048 |
| Loss allowance (Lifetime <br>&nbsp;&nbsp;&nbsp;&nbsp; ECL) | (2) | (3) | (1) | (8) | (29) |  | (286) | (329) |
| Amortized cost | $5634 | $48 | $5 | $18 | $14 | $— | $— | $5719 |

---

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.

------

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

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Beginning balance | $1102 | $1143 |
| Add: Provision for credit loss | 179 | 196 |
| Less: Amounts written off | (138) | (152) |
| Ending balance | $1143 | $1187 |

---

**12.** **INVENTORIES**

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Merchandise | $4874 | $4025 |
| Project in process | 4564 | 6294 |
| Work in process | 269 | 252 |
| Raw materials | 222 | 279 |
|  | 9929 | 10850 |
| Land held under development | 1999 | 1999 |
| Construction in progress | 159 | 330 |
|  | $12087 | $13179 |

---

The operating costs related to inventories were $53,814 million, $52,856 million and $56,261 million for the years ended December 31, 2023, 2024 and 2025, respectively.

For the years ended December 31, 2023, 2024 and 2025, valuation loss on inventories recognized as operating costs included the amounts of $23 million, $60 million and $34 million, respectively.

As of December 31, 2024 and 2025, inventories of $2,158 million and $2,329 million, 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 31 and 42 for details.

------

**13.** **PREPAYMENTS**

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Prepayments for leases - satellite (Note 42) | $3129 | $4841 |
| Prepaid rents | 1762 | 1481 |
| Others | 2708 | 3399 |
|  | $7599 | $9721 |
| Current |  |  |
| &nbsp;&nbsp;Prepaid rents | $497 | $484 |
| &nbsp;&nbsp;Others | 2641 | 3306 |
|  | $3138 | $3790 |
| Noncurrent |  |  |
| &nbsp;&nbsp;Prepayments for leases - satellite (Note 42) | $3129 | $4841 |
| &nbsp;&nbsp;Prepaid rents | 1265 | 997 |
| &nbsp;&nbsp;Others | 67 | 93 |
|  | $4461 | $5931 |

---

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.

**14.** **OTHER CURRENT MONETARY ASSETS**

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Time deposits, negotiable certificates of deposit and <br> commercial paper with maturities of more than three months | $21680 | $20538 |
| Receivables from the Fund for Privatization of Government - <br> owned Enterprises under the Executive Yuan (Note 29) | 12 | 1089 |
| Accrued custodial receipts | 725 | 752 |
| Others | 991 | 1089 |
|  | $23408 | $23468 |

---

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** | **December 31** |
|  | **2024** | **2025** |
| Time deposits, negotiable certificates of deposit and <br> commercial paper with maturities of more than three months | 0.03%-5.10% | 0.03%-4.16% |

---

------

**15.** **SUBSIDIARIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Information on subsidiaries with material noncontrolling interests

The table below shows details of less than wholly owned subsidiaries of the Company that have material noncontrolling interests:

---

| | | | |
|:---|:---|:---|:---|
|  | **Place of Incorporation** | **Proportion of Ownership<br>Interests and Voting Rights<br>Held by Noncontrolling<br>Interests** | **Proportion of Ownership<br>Interests and Voting Rights<br>Held by Noncontrolling<br>Interests** |
|  | **and Principal** | **December 31** | **December 31** |
| **Subsidiaries** | **Place of Business** | **2024** | **2025** |
| SENAO | Taiwan | 72% | 72% |
| CHPT | Taiwan | 66% | 66% |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Profit Allocated to<br>Noncontrolling<br>Interests** | **Profit Allocated to<br>Noncontrolling<br>Interests** | **Profit Allocated to<br>Noncontrolling<br>Interests** | **Accumulated<br>Noncontrolling<br>Interests** | **Accumulated<br>Noncontrolling<br>Interests** |
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** | **December 31** | **December 31** |
|  | **2023** | **2024** | **2025** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| SENAO | $510 | $353 | $322 | $4549 | $4563 |
| CHPT | $15 | $295 | $630 | 5289 | 5790 |
| Individually immaterial subsidiaries with<br> noncontrolling interests |  |  |  | 3142 | 3987 |
|  |  |  |  | $12980 | $14340 |

---

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** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Current assets | $6738 | $7103 |
| Noncurrent assets | $3522 | $3445 |
| Current liabilities | $3582 | $3911 |
| Noncurrent liabilities | $416 | $355 |
| Equity attributable to the parent | $1713 | $1719 |
| Equity attributable to noncontrolling interests | $4549 | $4563 |

---

------

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  |  | **(In Millions)** |  |
| Revenues and income | $31675 | $32503 | $33337 |
| Costs and expenses | 30964 | 32012 | 32888 |
| Profit for the year | $711 | $491 | $449 |
| Profit attributable to the parent | $201 | $138 | $127 |
| Profit attributable to noncontrolling interests | 510 | 353 | 322 |
| Profit for the year | $711 | $491 | $449 |
| Other comprehensive income (loss) attributable to the parent | $(9) | $11 | $(5) |
| Other comprehensive income (loss) attributable to <br>&nbsp;&nbsp;&nbsp;&nbsp; noncontrolling interests | (23) | 30 | (12) |
| Other comprehensive income (loss) for the year | $(32) | $41 | $(17) |
| Total comprehensive income attributable to the parent | $192 | $149 | $122 |
| Total comprehensive income attributable to noncontrolling <br>&nbsp;&nbsp;&nbsp;&nbsp; interests | 487 | 383 | 310 |
| Total comprehensive income for the year | $679 | $532 | $432 |
| Net cash flow from operating activities | $1146 | $904 | $391 |
| Net cash flow from investing activities | 36 | (356) | (14) |
| Net cash flow from financing activities | (873) | (819) | (389) |
| Effect of exchange rate changes on cash and cash equivalents |  |  |  |
| Net cash inflow (outflow) | $309 | $(271) | $(12) |
| Dividends paid to noncontrolling interests | $408 | $371 | $306 |

---

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** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Current assets | $4936 | $5930 |
| Noncurrent assets | $4222 | $4021 |
| Current liabilities | $1102 | $1202 |
| Noncurrent liabilities | $21 | $13 |
| Equity attributable to CHI | $2746 | $2946 |
| Equity attributable to noncontrolling interests | $5289 | $5790 |

---

------

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  |  | **(In Millions)** |  |
| Revenues and income | $2941 | $3670 | $4857 |
| Costs and expenses | 2905 | 3207 | 3893 |
| Profit for the year | $36 | $463 | $964 |
| Profit attributable to CHI | $21 | $168 | $334 |
| Profit attributable to noncontrolling interests | 15 | 295 | 630 |
| Profit for the year | $36 | $463 | $964 |
| Other comprehensive income (loss) attributable to CHI | $(1) | $6 | $(3) |
| Other comprehensive income (loss) attributable to <br>&nbsp;&nbsp;&nbsp;&nbsp; noncontrolling interests | (2) | 10 | (5) |
| Other comprehensive income (loss) for the year | $(3) | $16 | $(8) |
| Total comprehensive income attributable to CHI | $20 | $174 | $331 |
| Total comprehensive income attributable to noncontrolling <br>&nbsp;&nbsp;&nbsp;&nbsp; interests | 13 | 305 | 625 |
| Total comprehensive income for the year | $33 | $479 | $956 |
| Net cash flow from operating activities | $325 | $616 | $1574 |
| Net cash flow from investing activities | (244) | (188) | (372) |
| Net cash flow from financing activities | (409) | (43) | (285) |
| Effect of exchange rate changes on cash and cash equivalents | (2) | 15 | (6) |
| Net cash inflow (outflow) | $(330) | $400 | $911 |
| Dividends paid to noncontrolling interests | $253 | $11 | $168 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Equity transactions with noncontrolling interests

CHIEF issued new shares in December 2023, December 2024 and March 2025 as its employees exercised options. Therefore, the Company's ownership interest in CHIEF decreased. See Note 35(a) for details.

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. CHTSC issued new shares in February 2023, May 2023, January 2024, March 2024, December 2024, February 2025, May 2025 and August 2025 as its employees exercised options. See Note 35(b)(c) 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. Therefore, the Company's ownership interest in CHTSC decreased.

Chunghwa disposed of some shares of IISI in August 2024 before IISI traded its shares on the emerging stock market according to the local requirements. Therefore, the Company's ownership interest in IISI decreased. 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 35(e) for details.

CLPT issued new shares in May 2023, July 2024 and December 2025 as its employees exercised options. Therefore, the Company's ownership interest in CLPT decreased. See Note 35(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.

The detailed information of the equity transactions for the years ended December 31, 2023, 2024 and 2025 was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
|  | **CHIEF<br>Share-Based<br>Payment** | **CHTSC<br>Share-Based<br>Payment** | **CLPT<br>Share-Based Payment** | **Purchasing<br>UTC<br>shares** |
|  | **NT$** | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Cash consideration received from (paid to)<br> noncontrolling interests (Note) | $8 | $15 | $1 | $— |
| The proportionate share of the carrying amount of the<br> net assets of the subsidiary transferred from (to) <br> noncontrolling interests | (2) | (13) | (1) |  |
| Differences arising from equity transactions | $6 | $2 | $— | $— |
| <u>Line items for equity transaction adjustments</u> |  |  |  |  |
| Additional paid-in capital - arising from the difference <br> between the consideration received or paid and the <br> carrying amount of the subsidiaries' net assets during <br> actual disposal or acquisition | $— | $— | $— | $— |
| Additional paid-in capital - arising from changes in<br> equities of subsidiaries | $6 | $2 | $— | $— |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
|  | **CHIEF<br>Share-Based<br>Payment** | **CHTSC<br>Share-Based<br>Payment** | **CLPT<br>Share-Based Payment** | **Disposal of<br>CHTSC<br>Shares** | **Disposal of IISI Shares** |
|  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Cash consideration received from noncontrolling <br> interests (Note) | $14 | $14 | $9 | $207 | $52 |
| The proportionate share of the carrying amount of<br> the net assets of the subsidiary transferred<br> to noncontrolling interests | (10) | (14) | (13) | (19) | (16) |
| Differences arising from equity transactions | $4 | $— | $(4) | $188 | $36 |
| <u>Line items for equity transaction adjustments</u> |  |  |  |  |  |
| Additional paid-in capital - arising from the<br> difference between the consideration received<br> or paid and the carrying amount of the <br> subsidiaries' net assets during actual<br> disposal or acquisition | $— | $— | $— | $188 | $36 |
| Additional paid-in capital - arising from changes in<br> equities of subsidiaries | $4 | $— | $(4) | $— | $— |

---

------

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** |
|  | **Chunghwa Not Proportionately Participating in the Capital Increase of CHTSC** | **Chunghwa Not Proportionately Participating in the Capital Increase of IISI** | **CHIEF<br>Share-Based<br>Payment** | **CHTSC<br>Share-Based<br>Payment** | **CLPT<br>Share-Based Payment** | **Disposal of<br>CHPT<br>Shares** | **Disposal of IISI Shares** |
|  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  |  |  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Cash consideration received from <br> noncontrolling interests | $1032 | $357 | $13 | $1 | $17 | $298 | $13 |
| The proportionate share of the carrying <br> amount of the net assets of the <br> subsidiary transferred (from) to <br> noncontrolling interests | (500) | (259) | (16) | 8 | (21) | (72) | (3) |
| Differences arising from equity <br> transactions | $532 | $98 | $(3) | $9 | $(4) | $226 | $10 |
| <u>Line items for equity transaction <br> adjustments</u> |  |  |  |  |  |  |  |
| Additional paid-in capital - arising from <br> the difference between the <br> consideration received or paid and the <br> carrying amount of the subsidiaries' <br> net assets during actual disposal or <br> acquisition | $— | $— | $— | $— | $— | $226 | $8 |
| Additional paid-in capital - arising from <br> changes in equities of subsidiaries | $532 | $98 | $(3) | $9 | $(4) | $— | $2 |

---

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 million 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<br>(In Millions)** |
| Current assets |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract assets | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade notes and accounts receivable, net | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 7 |
| Noncurrent assets |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Right-of-use assets | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax assets | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 12 |
| Current liabilities |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Short-term loans | (65) |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities | (8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade notes and accounts payable | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | (2) |
| Noncurrent liabilities |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Customers' deposits | (7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | (2) |
| Net liabilities | $(35) |

---

**16.** **INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD**

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Investments in associates | $8870 | $8255 |
| Investment in joint venture | 9 | 9 |
|  | $8879 | $8264 |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Investments in associates

Investments in associates were as follows:

---

| | | |
|:---|:---|:---|
|  | **Carrying Amount** | **Carrying Amount** |
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| <u>Material associate</u> |  |  |
| <u>Non-listed</u> |  |  |
| Next Commercial Bank Co., Ltd. ("NCB") | $3951 | $3591 |
| <u>Associates that are not individually material</u> |  |  |
| <u>Listed</u> |  |  |
| Senao Networks, Inc. ("SNI") | 1849 | 1876 |
| KingwayTek Technology Co., Ltd. ("KWT") | 242 | 228 |
| <u>Non-listed</u> |  |  |
| Viettel-CHT Co., Ltd. ("Viettel-CHT") | 573 | 582 |
| Taiwan International Standard Electronics Co., Ltd. ("TISE") | 373 | 373 |
| ST-2 Satellite Ventures Pte., Ltd. ("STS") | 313 | 345 |
| WiAdvance Technology Corporation ("WATC") | 274 | 260 |
| Chunghwa PChome Fund I Co., Ltd. ("CPFI") | 253 | 252 |
| Taiwania Hive Technology Fund L.P. ("TWTF") | 276 | 234 |
| Taiwan International Ports Logistics Corporation ("TIPL") | 132 | 133 |
| So-net Entertainment Taiwan Limited ("So-net") | 193 | 127 |
| Porrima Inc. ("PORRIMA") | 78 | 74 |
| CHT Infinity Singapore Pte., Ltd. ("CISG") | 61 | 54 |
| Imedtac Co., Ltd. ("IME") | 57 | 54 |
| Click Force Co., Ltd. ("CF") | 51 | 42 |
| Baohwa Trust Co., Ltd. ("BHT") | 12 | 18 |
| Gather Works Co., Ltd. ("GW") |  | 12 |
| KKBOX Taiwan Co., Ltd. ("KKBOXTW") | 151 |  |
| AgriTalk Technology Inc. ("ATT") | 26 |  |
| Cornerstone Ventures Co., Ltd. ("CVC") | 5 |  |
| Chunghwa Sochamp Technology Inc. ("CHST") (Note 15) |  |  |
|  | $8870 | $8255 |

---

------

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<br>Voting Rights** | **% of Ownership Interests and<br>Voting Rights** |
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
| <u>Material associate</u> |  |  |
| <u>Non-listed</u> |  |  |
| Next Commercial Bank Co., Ltd. ("NCB") | 46 | 46 |
| <u>Associates that are not individually material</u> |  |  |
| <u>Listed</u> |  |  |
| Senao Networks, Inc. ("SNI") | 33 | 33 |
| KingwayTek Technology Co., Ltd. ("KWT") | 23 | 23 |
| <u>Non-listed</u> |  |  |
| 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") | 42 | 40 |
| Taiwan International Ports Logistics Corporation ("TIPL") | 27 | 27 |
| So-net Entertainment Taiwan Limited ("So-net") | 30 | 30 |
| Porrima Inc. ("PORRIMA") | 10 | 9 |
| 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 15) |  | 37 |

---

Summarized financial information of NCB was set out below:

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Assets | $48637 | $65360 |
| Liabilities | (40043) | (57557) |
| Equity | $8594 | $7803 |
| The percentage of ownership interest held by the Company | 46.26% | 46.26% |
| Equity attributable to the Company | $3975 | $3610 |
| Unrealized gain or loss from downstream transactions | (24) | (19) |
| The carrying amount of investment | $3951 | $3591 |

---

------

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  |  | **(In Millions)** |  |
| Net revenues | $10 | $314 | $330 |
| Net loss for the year | $(969) | $(747) | $(856) |
| Other comprehensive income (loss) | 14 | (6) | 65 |
| Total comprehensive loss for the year | $(955) | $(753) | $(791) |

---

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** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  |  | **(In Millions)** |  |
| The Company's share of profits | $647 | $494 | $454 |
| The Company's share of other comprehensive income (loss) | (23) | 40 | (9) |
| The Company's share of total comprehensive income | $624 | $534 | $445 |

---

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

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| SNI | $3838 | $2556 |
| KWT | $897 | $795 |

---

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 did not participate in the capital increase of BHT in September 2023. Therefore, the Company's ownership interest in BHT decreased to 25.00%.

The Company's ownership interest in NCB was originally 41.90%. NCB reduced 26.43% of its capital to offset accumulated deficits and increased its capital in December 2023. The Company increased its investment in NCB in higher proportion to the original shareholder percentage at the amount of $1,544 million in December 2023. Therefore, the Company's ownership interest in NCB increased to 46.26%. 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 increased its investment in IME proportionally at the amount of $11 million in December 2023, and increased its investment in IME in higher proportion to the original shareholder percentage at the amount of $32 million in April 2024, respectively. 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.

------

The Company did not participate in the capital increase of WATC in January 2024. WATC issued new shares in April 2023, September 2023, December 2023, March 2024 and September 2024 as its employees exercised option. Therefore, the Company's ownership interest in WATC decreased to 19.22% and 16.24% as of December 31, 2023 and December 31, 2024, respectively. However, as the Company continues to control one out of five seats of the Board of Directors of WATC, the Company has significant influence over WATC.

The Company increased its investment in SNI in lower proportion to the original shareholder percentage at the amount of $376 million in October 2024. Therefore, the Company's ownership interest in SNI decreased to 33.16% as of December 31, 2024.

Chunghwa's Board of Directors approved an investment in TWTF at the amount of USD 30 million in February 2024. The Company initially invested $288 million (USD 9 million) in TWTF in August 2024 and obtained 41.75% ownership interest in TWTF. 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 invested $14 million 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.

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.

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

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 million and recognized loss on disposal of $2 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 Company received the proceeds from disposal of $8 million and recognized loss on disposal of $14 million under "other gains and losses" on the consolidated statements of comprehensive income.

The Company disposed of all its shares of KKBOXTW in November 2025. The Company received the proceeds from disposal of $873 million and recognized gain on disposal of $753 million under "other gains and losses" on the consolidated statements of comprehensive income.

The Company participated in the capital increase of PORRIMA at the amount of $80 million 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 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's share of profits and other comprehensive income (loss) of associates was recognized based on the audited financial statements.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Investment in joint venture

Investment in joint venture was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Carrying Amount** | **Carrying Amount** | **% of Ownership Interests and Voting Rights** | **% of Ownership Interests and Voting Rights** |
|  | **December 31** | **December 31** | **December 31** | **December 31** |
| **Name of Joint Venture** | **2024** | **2025** | **2024** | **2025** |
|  | **(In Millions)** | **(In Millions)** |  |  |
| Non-listed |  |  |  |  |
| Chunghwa SEA Holdings ("CHT SEA") | $9 | $9 | 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** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  |  | **(In Millions)** |  |
| The Company's share of loss | $— | $— | $— |
| The Company's share of other comprehensive<br> income |  |  |  |
| The Company's share of total comprehensive loss | $— | $— | $— |

---

The above amounts are less than one million and not zero.

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

**17.** **PROPERTY, PLANT AND EQUIPMENT**

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Assets used by the Company | $284715 | $282493 |
| Assets subject to operating leases | 5125 | 5672 |
|  | $289840 | $288165 |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Assets used by the Company

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Land** | **Land<br>Improvements** | **Buildings** | **Computer<br>Equipment** | **Telecommuni-<br>cations <br>Equipment** | **Transportation<br>Equipment** | **Miscellaneous<br>Equipment** | **Construction in<br>Progress and<br>Equipment to <br>be Accepted** | **Total** |
|  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| <u>Cost</u> |  |  |  |  |  |  |  |  |  |
| Balance on <br> January 1, 2023 | $103664 | $1675 | $72530 | $11089 | $720068 | $3971 | $11468 | $14427 | $938892 |
| Additions | 99 |  | 36 | 127 | 106 | 3 | 243 | 29780 | 30394 |
| Disposal | (2) |  | (1) | (1049) | (24877) | (112) | (418) |  | (26459) |
| Effect of foreign <br> exchange <br> differences |  |  |  |  | (5) |  | (3) |  | (8) |
| Others | (876) | 34 | (810) | 878 | 26143 | 188 | 801 | (28270) | (1912) |
| Balance on <br> December 31, <br> 2023 | $102885 | $1709 | $71755 | $11045 | $721435 | $4050 | $12091 | $15937 | $940907 |
| <u>Accumulated <br> depreciation <br> and impairment</u> |  |  |  |  |  |  |  |  |  |
| Balance on <br> January 1, 2023 | $— | $(1474) | $(32263) | $(9554) | $(597957) | $(3673) | $(8642) | $— | $(653563) |
| Depreciation <br> expenses |  | (34) | (1439) | (698) | (25704) | (94) | (797) |  | (28766) |
| Disposal |  |  |  | 1049 | 24867 | 113 | 411 |  | 26440 |
| Impairment losses |  |  |  |  | (299) |  |  |  | (299) |
| Effect of foreign <br> exchange <br> differences |  |  |  |  | 5 |  | 1 |  | 6 |
| Others |  |  | 418 | (18) | (43) | (1) | 4 |  | 360 |
| Balance on <br> December 31, <br> 2023 | $— | $(1508) | $(33284) | $(9221) | $(599131) | $(3655) | $(9023) | $— | $(655822) |
| Balance on <br> December 31, <br> 2023, net | $102885 | $201 | $38471 | $1824 | $122304 | $395 | $3068 | $15937 | $285085 |
| <u>Cost</u> |  |  |  |  |  |  |  |  |  |
| Balance on <br> January 1, 2024 | $102885 | $1709 | $71755 | $11045 | $721435 | $4050 | $12091 | $15937 | 940907 |
| Additions |  |  | 176 | 25 | 321 | 4 | 139 | 27910 | 28575 |
| Disposal |  |  | (18) | (1240) | (27010) | (154) | (506) |  | (28928) |
| Effect of foreign <br> exchange <br> differences |  |  |  |  | 167 |  | 9 | 16 | 192 |
| Others | (539) | 40 | 2265 | 619 | 23440 | 284 | 947 | (27290) | (234) |
| Balance on <br> December 31, <br> 2024 | $102346 | $1749 | $74178 | $10449 | $718353 | $4184 | $12680 | $16573 | $940512 |

---

(Continued)

------

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Land** | **Land<br>Improvements** | **Buildings** | **Computer<br>Equipment** | **Telecommuni-<br>cations <br>Equipment** | **Transportation<br>Equipment** | **Miscellaneous<br>Equipment** | **Construction in<br>Progress and<br>Equipment to <br>be Accepted** | **Total** |
|  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| <u>Accumulated <br> depreciation <br> and impairment</u> |  |  |  |  |  |  |  |  |  |
| Balance on <br> January 1, 2024 | $— | $(1508) | $(33284) | $(9221) | $(599131) | $(3655) | $(9023) | $— | $(655822) |
| Depreciation <br> expenses |  | (36) | (1467) | (747) | (25434) | (128) | (830) |  | (28642) |
| Disposal |  |  | 17 | 1240 | 27003 | 153 | 485 |  | 28898 |
| Effect of foreign <br> exchange <br> differences |  |  |  |  | (105) |  | (5) |  | (110) |
| Others |  |  | 12 | 2 | (7) |  | (128) |  | (121) |
| Balance on <br> December 31, <br> 2024 | $— | $(1544) | $(34722) | $(8726) | $(597674) | $(3630) | $(9501) | $— | $(655797) |
| Balance on <br> December 31, <br> 2024, net | $102346 | $205 | $39456 | $1723 | $120679 | $554 | $3179 | $16573 | $284715 |
| <u>Cost</u> |  |  |  |  |  |  |  |  |  |
| Balance on <br> January 1, 2025 | $102346 | $1749 | $74178 | $10449 | $718353 | $4184 | $12680 | $16573 | $940512 |
| Additions |  |  | 115 | 89 | 193 | 2 | 147 | 27220 | 27766 |
| Disposal |  | (1) | (4) | (1038) | (17536) | (426) | (537) |  | (19542) |
| Effect of <br> deconsolidation <br> of subsidiaries <br> (Note 15) |  |  |  |  |  | (2) | (3) |  | (5) |
| Effect of foreign <br> exchange <br> differences |  |  |  |  | (102) |  | (5) | (14) | (121) |
| Others | (374) | 46 | 341 | 796 | 23654 | 185 | 3122 | (28574) | (804) |
| Balance on <br> December 31, <br> 2025 | $101972 | $1794 | $74630 | $10296 | $724562 | $3943 | $15404 | $15205 | $947806 |
| <u>Accumulated <br> depreciation <br> and impairment</u> |  |  |  |  |  |  |  |  |  |
| Balance on <br> January 1, 2025 | $— | $(1544) | $(34722) | $(8726) | $(597674) | $(3630) | $(9501) | $— | $(655797) |
| Depreciation <br> expenses |  | (49) | (1512) | (680) | (25827) | (181) | (862) |  | (29111) |
| Disposal |  | 1 | 4 | 1037 | 17534 | 426 | 491 |  | 19493 |
| Effect of <br> deconsolidation <br> of subsidiaries <br> (Note 15) |  |  |  |  |  | 2 | 3 |  | 5 |
| Impairment losses |  |  |  |  | (112) |  |  |  | (112) |
| Effect of foreign <br> exchange <br> differences |  |  |  |  | 68 |  | 3 |  | 71 |
| Others |  |  | 172 |  | 2292 | (3) | (2323) |  | 138 |
| Balance on <br> December 31, <br> 2025 | $— | $(1592) | $(36058) | $(8369) | $(603719) | $(3386) | $(12189) | $— | $(665313) |
| Balance on <br> December 31, <br> 2025, net | $101972 | $202 | $38572 | $1927 | $120843 | $557 | $3215 | $15205 | $282493 |

---

(Concluded)

After the evaluation of certain telecommunications equipment, the Company determined that the recoverable amount of such assets was nil because the telecommunications service provided by 3G network would be discontinued; therefore, the Company recognized an impairment loss of $299 million and $112 million for the years ended December 31, 2023 and 2025, respectively. 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 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Main buildings | 20-60 years |
| &nbsp;&nbsp;&nbsp;&nbsp;Other building facilities | 3-15 years |
| Computer equipment | 2-8 years |
| Telecommunications equipment |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Telecommunication circuits | 2-30 years |
| &nbsp;&nbsp;&nbsp;&nbsp;Telecommunication machinery and antennas equipment | 2-30 years |
| Transportation equipment | 2-10 years |
| Miscellaneous equipment |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Leasehold improvements | 1-18 years |
| &nbsp;&nbsp;&nbsp;&nbsp;Mechanical and air conditioner equipment | 2-16 years |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 1-15 years |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Assets subject to operating leases

---

| | | | |
|:---|:---|:---|:---|
|  | **Land** | **Buildings** | **Total** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| <u>Cost</u> |  |  |  |
| Balance on January 1, 2023 | $4376 | $3185 | $7561 |
| Additions |  | 4 | 4 |
| Others | 548 | 942 | 1490 |
| Balance on December 31, 2023 | $4924 | $4131 | $9055 |
| <u>Accumulated depreciation and impairment</u> |  |  |  |
| Balance on January 1, 2023 | $— | $(1362) | $(1362) |
| Depreciation expenses |  | (73) | (73) |
| Others |  | (367) | (367) |
| Balance on December 31, 2023 | $— | $(1802) | $(1802) |
| Balance on December 31, 2023, net | $4924 | $2329 | $7253 |
| <u>Cost</u> |  |  |  |
| Balance on January 1, 2024 | $4924 | $4131 | $9055 |
| Additions |  | 1 | 1 |
| Others | (1820) | (394) | (2214) |
| Balance on December 31, 2024 | $3104 | $3738 | $6842 |
| <u>Accumulated depreciation and impairment</u> |  |  |  |
| Balance on January 1, 2024 | $— | $(1802) | $(1802) |
| Depreciation expenses |  | (65) | (65) |
| Others |  | 150 | 150 |
| Balance on December 31, 2024 | $— | $(1717) | $(1717) |
| Balance on December 31, 2024, net | $3104 | $2021 | $5125 |
| <u>Cost</u> |  |  |  |
| Balance on January 1, 2025 | $3104 | $3738 | $6842 |
| Additions |  |  |  |
| Others | 351 | 398 | 749 |
| Balance on December 31, 2025 | $3455 | $4136 | $7591 |
| <u>Accumulated depreciation and impairment</u> |  |  |  |
| Balance on January 1, 2025 | $— | $(1717) | $(1717) |
| Depreciation expenses |  | (72) | (72) |
| Others |  | (130) | (130) |
| Balance on December 31, 2025 | $— | $(1919) | $(1919) |
| Balance on December 31, 2025, net | $3455 | $2217 | $5672 |

---

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** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Year 1 | $305 | $286 |
| Year 2 | 198 | 194 |
| Year 3 | 122 | 135 |
| Year 4 | 92 | 85 |
| Year 5 | 62 | 58 |
| Onwards | 137 | 130 |
|  | $916 | $888 |

---

------

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 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Main buildings | 35-60 years |
| &nbsp;&nbsp;&nbsp;&nbsp;Other building facilities | 3-15 years |

---

**18.** **LEASE ARRANGEMENTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Right-of-use assets

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Land and buildings |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Handsets base stations | $7648 | $7688 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 1564 | 1492 |
| Equipment | 1700 | 1584 |
|  | $10912 | $10764 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Additions to right-of-use assets | $4415 | $4092 | $4445 |
| Depreciation charge for right-of-use assets |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Land and buildings |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Handsets base stations | $2939 | $3009 | $3039 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others | 787 | 805 | 815 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equipment | 346 | 354 | 468 |
|  | $4072 | $4168 | $4322 |

---

The Company did not have significant sublease or impairment of right-of-use assets for the years ended December 31, 2023, 2024 and 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Lease liabilities

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Lease liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current | $3558 | $3890 |
| &nbsp;&nbsp;&nbsp;&nbsp;Noncurrent | 7334 | 7001 |
|  | $10892 | $10891 |

---

------

Ranges of discount rates for lease liabilities were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
| Land and buildings |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Handsets base stations | 0.37%-2.00% | 0.37%-2.00% |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 0.37%-9.00% | 0.37%-9.00% |
| Equipment | 0.37%-3.50% | 0.37%-3.50% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 40.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Other lease information

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Expenses relating to low-value asset leases | $9 | $10 | $9 |
| Expenses relating to variable lease payments not included in <br>&nbsp;&nbsp;&nbsp;&nbsp; the measurement of lease liabilities | $8 | $7 | $7 |
| Total cash outflow for leases | $4006 | $4089 | $4305 |

---

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 17 and 19.

**19.** **INVESTMENT PROPERTIES**

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Carrying amount |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment properties | $12302 | $12420 |

---

------

---

| | |
|:---|:---|
|  | **Investment <br>Properties** |
|  | **NT$** |
|  | **(In Millions)** |
| <u>Cost</u> |  |
| Balance on January 1, 2023 | $10780 |
| Additions | 54 |
| Reclassification | 328 |
| Balance on December 31, 2023 | $11162 |
| <u>Accumulated depreciation and impairment</u> |  |
| Balance on January 1, 2023 | $(976) |
| Depreciation expense | (45) |
| Impairment loss | (336) |
| Balance on December 31, 2023 | $(1357) |
| Balance on December 31, 2023, net | $9805 |
| <u>Cost</u> |  |
| Balance on January 1, 2024 | $11162 |
| Additions | 4 |
| Reclassification | 2427 |
| Balance on December 31, 2024 | $13593 |
| <u>Accumulated depreciation and impairment</u> |  |
| Balance on January 1, 2024 | $(1357) |
| Depreciation expense | (45) |
| Reversal of impairment loss | 139 |
| Reclassification | (28) |
| Balance on December 31, 2024 | $(1291) |
| Balance on December 31, 2024, net | $12302 |
| <u>Cost</u> |  |
| Balance on January 1, 2025 | $13593 |
| Additions | 74 |
| Reclassification | 76 |
| Balance on December 31, 2025 | $13743 |
| <u>Accumulated depreciation and impairment</u> |  |
| Balance on January 1, 2025 | $(1291) |
| Depreciation expense | (45) |
| Reversal of impairment loss | 28 |
| Reclassification | (15) |
| Balance on December 31, 2025 | $(1323) |
| Balance on December 31, 2025, net | $12420 |

---

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 an impairment loss of $336 million for the year ended December 31, 2023, and reversal of impairment losses of $139 million and $28 million for the years ended December 31, 2024 and 2025, respectively. The impairment loss and the reversal of impairment loss 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 |  |
| &nbsp;&nbsp;Main buildings | 8-60 years |
| &nbsp;&nbsp;Other building facilities | 10-35 years |

---

The fair values of the Company's investment properties as of December 31, 2024 and 2025 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** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Fair value | $41285 | $43263 |
| Overall capital interest rate | 1.47%-5.81% | 1.30%-6.11% |
| Profit margin ratio | 12%-20% | 12%-20% |
| Discount rate | 0%-10% | 0%-10% |
| Capitalization rate | 1.12%-2.13% | 0.64%-1.59% |

---

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** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Year 1 | $274 | $309 |
| Year 2 | 248 | 272 |
| Year 3 | 217 | 244 |
| Year 4 | 192 | 237 |
| Year 5 | 190 | 214 |
| Onwards | 1306 | 1233 |
|  | $2427 | $2509 |

---

**20.** **INTANGIBLE ASSETS**

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Carrying amount |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mobile Broadband Concession | $65371 | $58981 |
| &nbsp;&nbsp;&nbsp;&nbsp;Computer software | 551 | 442 |
| &nbsp;&nbsp;&nbsp;&nbsp;Goodwill | 217 | 217 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 144 | 122 |
|  | $66283 | $59762 |

---

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Mobile Broadband Concession** | **Computer <br>Software** | **Goodwill** | **Others** | **Total** |
|  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| <u>Cost</u> |  |  |  |  |  |
| Balance on January 1, 2023 | $109963 | $2798 | $291 | $422 | 113474 |
| Additions-acquired separately |  | 231 |  | 6 | 237 |
| Disposal |  | (499) |  | (6) | (505) |
| Effect of foreign exchange differences |  |  |  |  |  |
| Others |  | 3 |  |  | 3 |
| Balance on December 31, 2023 | $109963 | $2533 | $291 | $422 | $113209 |
| <u>Accumulated amortization and impairment</u> |  |  |  |  |  |
| Balance on January 1, 2023 | $(31813) | $(2176) | $(74) | $(224) | $(34287) |
| Amortization expenses | (6389) | (276) |  | (34) | (6699) |
| Disposal |  | 499 |  | 6 | 505 |
| Effect of foreign exchange differences |  | (1) |  |  | (1) |
| Others |  |  |  |  |  |
| Balance on December 31, 2023 | $(38202) | $(1954) | $(74) | $(252) | $(40482) |
| Balance on December 31, 2023, net | $71761 | $579 | $217 | $170 | $72727 |
| <u>Cost</u> |  |  |  |  |  |
| Balance on January 1, 2024 | $109963 | $2533 | $291 | $422 | $113209 |
| Additions-acquired separately |  | 229 |  | 5 | 234 |
| Disposal |  | (358) |  | (8) | (366) |
| Effect of foreign exchange differences |  |  |  |  |  |
| Others |  | 24 |  |  | 24 |
| Balance on December 31, 2024 | $109963 | $2428 | $291 | $419 | $113101 |
| <u>Accumulated amortization and impairment</u> |  |  |  |  |  |
| Balance on January 1, 2024 | $(38202) | $(1954) | $(74) | $(252) | $(40482) |
| Amortization expenses | (6390) | (278) |  | (31) | (6699) |
| Disposal |  | 358 |  | 8 | 366 |
| Effect of foreign exchange differences |  |  |  |  |  |
| Others |  | (3) |  |  | (3) |
| Balance on December 31, 2024 | $(44592) | $(1877) | $(74) | $(275) | $(46818) |
| Balance on December 31, 2024, net | $65371 | $551 | $217 | $144 | $66283 |
| <u>Cost</u> |  |  |  |  |  |
| Balance on January 1, 2025 | $109963 | $2428 | $291 | $419 | $113101 |
| Additions-acquired separately |  | 140 |  | 4 | 144 |
| Disposal |  | (249) |  | (2) | (251) |
| Effect of foreign exchange differences |  |  |  |  |  |
| Others |  | 2 |  | (1) | 1 |
| Balance on December 31, 2025 | $109963 | $2321 | $291 | $420 | $112995 |
| <u>Accumulated amortization and impairment</u> |  |  |  |  |  |
| Balance on January 1, 2025 | $(44592) | $(1877) | $(74) | $(275) | $(46818) |
| Amortization expenses | (6390) | (251) |  | (25) | (6666) |
| Disposal |  | 249 |  | 2 | 251 |
| Effect of foreign exchange differences |  |  |  |  |  |
| Balance on December 31, 2025 | $(50982) | $(1879) | $(74) | $(298) | $(53233) |
| Balance on December 31, 2025, net | $58981 | $442 | $217 | $122 | $59762 |

---

------

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

The computer software is amortized using the straight-line method over the estimated useful lives of 1 to 10 years. Other intangible assets, except for those assessed as having indefinite useful lives, are amortized using the straight-line method over the estimated useful lives of 3 to 20 years. Goodwill is not amortized.

The Company did not recognize any impairment loss on intangible assets for the years ended December 31, 2023, 2024 and 2025.

**21.** **OTHER ASSETS**

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Spare parts | $2006 | $2141 |
| Refundable deposits | 2162 | 1975 |
| Other financial assets | 1000 | 1000 |
| Prepayments for investments (Note 42) |  | 650 |
| Others | 2833 | 3170 |
|  | $8001 | $8936 |
| Current |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Spare parts | $2006 | $2141 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 1109 | 1300 |
|  | $3115 | $3441 |
| Noncurrent |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Refundable deposits | $2162 | $1975 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financial assets | 1000 | 1000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepayments for investments (Note 42) |  | 650 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 1724 | 1870 |
|  | $4886 | $5495 |

---

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.

**22.** **HEDGING FINANCIAL INSTRUMENTS**

Chunghwa's hedge strategy is to enter into forward exchange contracts - buy to avoid its foreign currency exposure to certain foreign currency denominated equipment payments in the following six months. In addition, Chunghwa's management considers the market condition to determine the hedge ratio and enters into forward exchange contracts with the banks to avoid the foreign currency risk.

Chunghwa signed equipment purchase contracts with suppliers and entered into forward exchange contracts to avoid foreign currency risk exposure to Euro-denominated purchase commitments. Those forward exchange contracts were designated as cash flow hedges. When forecast purchases actually take place, basis adjustments are made to the initial carrying amounts of hedged items.

------

For the hedges of highly probable forecast sales and purchases, as the critical terms (i.e. the notional amount, life and underlying) of the forward foreign exchange contracts and their corresponding hedged items are the same, the Company performs a qualitative assessment of effectiveness and it is expected that the value of the forward contracts and the value of the corresponding hedged items will systematically change in opposite direction in response to movements in the underlying exchange rates.

The main source of hedge ineffectiveness in these hedging relationships is the effect of credit risks of the Company and the counterparty on the fair value of the forward exchange contracts. Such credit risks do not impact the fair value of the hedged item attributable to changes in foreign exchange rates. No other sources of ineffectiveness emerged from these hedging relationships.

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

<u>December 31, 2023</u>

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **Notional** |  | **Forward** | **Line Item in** | **Carrying Amount** | **Carrying Amount** | **Change in<br>Fair Values of<br>Hedging<br>Instruments<br>Used for<br>Calculating<br>Hedge** |
| **Hedging Instruments** | **Currency** | **Amount** | **Maturity** | **Rate** | **Balance Sheet** | **Asset** | **Liability** | **Ineffectiveness** |
|  |  | **(In Millions)** |  | **(In Dollars)** |  | **NT$** | **NT$** | **NT$** |
|  |  |  |  |  |  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Cash flow hedge |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Forecast purchases - <br> forward exchange <br> contracts | NT$/EUR | NT$24/<br>EUR 1 | March 2024 | $33.88 | Hedging financial assets (liabilities) | $— | $— | $(13) |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Change in Value of Hedged<br> Item Used for** | **Accumulated Gain or Loss on <br>Hedging Instruments in Other Equity** | **Accumulated Gain or Loss on <br>Hedging Instruments in Other Equity** |
| **Hedged Items** | **Calculating Hedge <br>Ineffectiveness** | **Continuing <br>Hedges** | **Hedge Accounting No Longer Applied** |
|  | **NT$** | **NT$** | **NT$** |
|  |  | **(In Millions)** |  |
| Cash flow hedge |  |  |  |
| &nbsp;&nbsp;Forecast equipment purchases | $13 | $— | $— |

---

<u>December 31, 2024</u>

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **Notional** |  | **Forward** | **Line Item in** | **Carrying Amount** | **Carrying Amount** | **Change in<br>Fair Values of<br>Hedging<br>Instruments<br>Used for<br>Calculating<br>Hedge** |
| **Hedging Instruments** | **Currency** | **Amount** | **Maturity** | **Rate** | **Balance Sheet** | **Asset** | **Liability** | **Ineffectiveness** |
|  |  | **(In Millions)** |  | **(In Dollars)** |  | **NT$** | **NT$** | **NT$** |
|  |  |  |  |  |  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Cash flow hedge |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Forecast purchases - <br> forward exchange <br> contracts | NT$/EUR | NT$341/<br>EUR 10 | March 2025 | $34.10 | Hedging financial assets (liabilities) | $1 | $2 | $(1) |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Change in Value of Hedged<br> Item Used for** | **Accumulated Gain or Loss on <br>Hedging Instruments in Other Equity** | **Accumulated Gain or Loss on <br>Hedging Instruments in Other Equity** |
| **Hedged Items** | **Calculating Hedge <br>Ineffectiveness** | **Continuing <br>Hedges** | **Hedge Accounting No Longer Applied** |
|  | **NT$** | **NT$** | **NT$** |
|  |  | **(In Millions)** |  |
| Cash flow hedge |  |  |  |
| &nbsp;&nbsp;Forecast equipment purchases | $1 | $(1) | $— |

---

------

<u>December 31, 2025</u>

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **Notional** |  | **Forward** | **Line Item in** | **Carrying Amount** | **Carrying Amount** | **Change in<br>Fair Values of<br>Hedging<br>Instruments<br>Used for<br>Calculating<br>Hedge** |
| **Hedging Instruments** | **Currency** | **Amount** | **Maturity** | **Rate** | **Balance Sheet** | **Asset** | **Liability** | **Ineffectiveness** |
|  |  | **(In Millions)** |  | **(In Dollars)** |  | **NT$** | **NT$** | **NT$** |
|  |  |  |  |  |  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Cash flow hedge |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Forecast purchases - <br> forward exchange <br> contracts | NT$/EUR | NT$55/<br>EUR 2 | January 2026 | $36.92 | Hedging financial assets (liabilities) | $— | $— | $2 |
| &nbsp;&nbsp;&nbsp;Forecast purchases - <br> forward exchange <br> contracts | NT$/EUR | NT$89/<br>EUR 3 | March 2026 | $35.55 | Hedging financial assets (liabilities) | $3 | $— | $2 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Change in Value of Hedged<br> Item Used for** | **Accumulated Gain or Loss on <br>Hedging Instruments in Other Equity** | **Accumulated Gain or Loss on <br>Hedging Instruments in Other Equity** |
| **Hedged Items** | **Calculating Hedge <br>Ineffectiveness** | **Continuing <br>Hedges** | **Hedge Accounting No Longer Applied** |
|  | **NT$** | **NT$** | **NT$** |
|  |  | **(In Millions)** |  |
| Cash flow hedge |  |  |  |
| &nbsp;&nbsp;Forecast equipment purchases | $(4) | $3 | $— |

---

<u>Year ended December 31, 2023</u>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Comprehensive Income** | **Comprehensive Income** | **Comprehensive Income** | **Reclassification from Equity to Assets and the Adjusted Line Item** | **Reclassification from Equity to Assets and the Adjusted Line Item** |
|  | **Hedging Gain or Loss** | **Amount of Hedge Ineffectiveness** | **Line Item in Which Hedge** | **Amount Reclassified to Assets and** | **Due to Hedged Future Cash Flows No** |
| **Hedge** | **Recognized** | **Recognized in** | **Ineffectiveness** | **the Adjusted** | **Longer Expected** |
| **Transaction** | **in OCI** | **Profit or Loss** | **is Included** | **Line Item** | **to Occur** |
|  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Cash flow hedge |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Forecast <br> equipment <br> purchases | $(13) | $— |  | $37 | $— |
|  |  |  |  | &nbsp;&nbsp;&nbsp;Construction in progress and equipment to be accepted | &nbsp;&nbsp;&nbsp;Other gains and losses |

---

<u>Year ended December 31, 2024</u>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Comprehensive Income** | **Comprehensive Income** | **Comprehensive Income** | **Reclassification from Equity to Assets and the Adjusted Line Item** | **Reclassification from Equity to Assets and the Adjusted Line Item** |
|  | **Hedging Gain or Loss** | **Amount of Hedge Ineffectiveness** | **Line Item in Which Hedge** | **Amount Reclassified to Assets and** | **Due to Hedged Future Cash Flows No** |
| **Hedge** | **Recognized** | **Recognized in** | **Ineffectiveness** | **the Adjusted** | **Longer Expected** |
| **Transaction** | **in OCI** | **Profit or Loss** | **is Included** | **Line Item** | **to Occur** |
|  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Cash flow hedge |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Forecast <br> equipment <br> purchases | $(1) | $— |  | $(2) | $— |
|  |  |  |  | &nbsp;&nbsp;&nbsp;Construction in progress and equipment to be accepted | &nbsp;&nbsp;&nbsp;Other gains and losses |

---

------

<u>Year ended December 31, 2025</u>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Comprehensive Income** | **Comprehensive Income** | **Comprehensive Income** | **Reclassification from Equity to Assets and the Adjusted Line Item** | **Reclassification from Equity to Assets and the Adjusted Line Item** |
|  | **Hedging Gain or Loss** | **Amount of Hedge Ineffectiveness** | **Line Item in Which Hedge** | **Amount Reclassified to Assets and** | **Due to Hedged Future Cash Flows No** |
| **Hedge** | **Recognized** | **Recognized in** | **Ineffectiveness** | **the Adjusted** | **Longer Expected** |
| **Transaction** | **in OCI** | **Profit or Loss** | **is Included** | **Line Item** | **to Occur** |
|  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Cash flow hedge |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Forecast <br> equipment <br> purchases | $4 | $— |  | $2 | $— |
|  |  |  |  | &nbsp;&nbsp;&nbsp;Construction in progress and equipment to be accepted | &nbsp;&nbsp;&nbsp;Other gains and losses |

---

**23.** **SHORT-TERM LOANS**

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Unsecured bank loans | $215 | $340 |

---

The annual interest rates of bank loans were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
| Unsecured bank loans | 1.82%-3.49% | 2.05%-2.08% |

---

**24.** **LONG-TERM LOANS**

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Secured bank loans (Note 41) | $1600 | $1600 |
| Unsecured bank loans | 35 |  |
| Less: Current portion | (4) |  |
|  | $1631 | $1600 |

---

The annual interest rates of bank loans were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
| Secured bank loans | 2.09% | 2.10% |
| 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, interest is paid monthly. The loan was fully repaid in July 2025.

------

**25.** **BONDS PAYABLE**

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Unsecured domestic bonds | $30500 | $25200 |
| Less: Discounts on bonds payable | (12) | (12) |
|  | $30488 | $25188 |
| Less: Current portion | (8799) | (1900) |
|  | $21689 | $23288 |

---

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Issuance** | **Tranche** | **Issuance Period** | **Total <br>Amount** | **Coupon <br>Rate** | **Repayment and Interest <br>&nbsp;&nbsp;&nbsp;&nbsp; Payment** |
|  |  |  | **NT$** |  |  |
|  |  |  | **(In Millions)** |  |  |
| 2020-1 | A | July 2020 to July 2025 | $8800 | 0.50% | One-time repayment <br> upon maturity; <br> interest payable <br> annually |
|  | B | July 2020 to July 2027 | 7500 | 0.54% | The same as above |
|  | C | July 2020 to July 2030 | 3700 | 0.59% | The same as above |
| 2021-1 | A | April 2021 to April 2026 | 1900 | 0.42% | The same as above |
|  | B | April 2021 to April 2028 | 4100 | 0.46% | The same as above |
|  | C | April 2021 to April 2031 | 1000 | 0.50% | The same as above |
| 2022-1<br>(Sustainable Bond) |  | March 2022 to March 2027 | 3500 | 0.69% | The same as above |
| 2025-1<br>(Sustainable Bond) |  | August 2025 to August 2030 | 3500 | 1.73% | The same as above |

---

**26.** **TRADE NOTES AND ACCOUNTS PAYABLE**

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Trade notes and accounts payable | $17743 | $15923 |

---

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

------

**27.** **OTHER PAYABLES**

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Accrued salary and compensation | $10722 | $11408 |
| Accrued compensation to employees and remuneration to directors and <br>&nbsp;&nbsp;&nbsp;&nbsp; supervisors | 2500 | 2783 |
| Payables to contractors | 2265 | 2484 |
| Amounts collected for others | 1707 | 1970 |
| Accrued maintenance costs | 1117 | 1210 |
| Payables to equipment suppliers | 720 | 557 |
| Others | 7550 | 8304 |
|  | $26581 | $28716 |

---

**28.** **PROVISIONS**

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Decommissioning liabilities | $— | $301 |
| Onerous contracts | 266 | 261 |
| Employee benefits | 416 | 255 |
| Warranties | 281 | 252 |
| Others | 14 | 16 |
|  | $977 | $1085 |
| Current | $442 | $525 |
| Noncurrent | 535 | 560 |
|  | $977 | $1085 |

---

------

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Decommissioning liabilities** | **Onerous Contracts** | **Employee Benefits** | **Warranties** | **Others** | **Total** |
|  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  |  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Balance on January 1, 2023 | $— | $95 | $65 | $235 | $4 | $399 |
| Additional / (reversal of) provisions <br>&nbsp;&nbsp;&nbsp;&nbsp;recognized |  | 49 | 323 | 69 | (1) | 440 |
| Used / forfeited during the year |  |  | (1) | (66) |  | (67) |
| Reclassification |  | 50 |  |  |  | 50 |
| Effect of foreign exchange differences |  |  |  |  |  |  |
| Balance on December 31, 2023 | $— | $194 | $387 | $238 | $3 | $822 |
| Balance on January 1, 2024 | $— | $194 | $387 | $238 | $3 | $822 |
| Additional / (reversal of) provisions <br>&nbsp;&nbsp;&nbsp;&nbsp;recognized |  | 72 | 34 | 114 | 11 | 231 |
| Used / forfeited during the year |  |  | (5) | (71) |  | (76) |
| Effect of foreign exchange differences |  |  |  |  |  |  |
| Balance on December 31, 2024 | $— | $266 | $416 | $281 | $14 | $977 |
| Balance on January 1, 2025 | $— | $266 | $416 | $281 | $14 | $977 |
| Additional / (reversal of) provisions <br>&nbsp;&nbsp;&nbsp;&nbsp;recognized | 301 | (5) | 60 | 59 | 6 | 421 |
| Used / forfeited during the year |  |  | (221) | (88) | (4) | (313) |
| Effect of foreign exchange differences |  |  |  |  |  |  |
| Balance on December 31, 2025 | $301 | $261 | $255 | $252 | $16 | $1085 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

**29.** **RETIREMENT BENEFIT PLANS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Present value of funded defined benefit obligations | $27985 | $27305 |
| Fair value of plan assets | (34762) | (34842) |
| Funded status - surplus | $(6777) | $(7537) |
| Net defined benefit liabilities | $2107 | $2329 |
| Net defined benefit assets | (8884) | (9866) |
|  | $(6777) | $(7537) |

---

------

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

---

| | | | |
|:---|:---|:---|:---|
|  | **Present Value<br>of Funded<br>Defined Benefit<br>Obligations** | **Fair Value of<br>Plan Assets** | **Net Defined<br>Benefit<br>Liabilities<br>(Assets)** |
|  | **NT$** | **NT$** | **NT$** |
|  |  | **(In Millions)** |  |
| Balance on January 1, 2023 | $33599 | $36580 | $(2981) |
| Current service cost | 1006 |  | 1006 |
| Loss on settlements | 1 |  | 1 |
| Interest expense/interest income | 403 | 452 | (49) |
| Amounts recognized in profit or loss | 1410 | 452 | 958 |
| Remeasurement on the net defined benefit liability |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Return on plan assets (excluding amounts<br> included in net interest) |  | 309 | (309) |
| &nbsp;&nbsp;&nbsp;&nbsp;Actuarial gain recognized from changes in<br> demographic assumptions | (100) |  | (100) |
| &nbsp;&nbsp;&nbsp;&nbsp;Actuarial loss recognized from experience adjustments | 252 |  | 252 |
| Amounts recognized in other comprehensive income | 152 | 309 | (157) |
| Contributions from employer |  | 1386 | (1386) |
| Benefits paid | (4549) | (4549) |  |
| Benefits paid directly by the Company | (299) |  | (299) |
| Balance on December 31, 2023 | 30313 | 34178 | (3865) |
| Current service cost | 904 |  | 904 |
| Interest expense/interest income | 372 | 422 | (50) |
| Amounts recognized in profit or loss | 1276 | 422 | 854 |
| Remeasurement on the net defined benefit liability |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Return on plan assets (excluding amounts<br> included in net interest) |  | 3105 | (3105) |
| &nbsp;&nbsp;&nbsp;&nbsp;Actuarial gain recognized from changes in<br> financial assumptions | (382) |  | (382) |
| &nbsp;&nbsp;&nbsp;&nbsp;Actuarial loss recognized from experience adjustments | 1232 |  | 1232 |
| Amounts recognized in other comprehensive income | 850 | 3105 | (2255) |
| Contributions from employer |  | 1245 | (1245) |
| Benefits paid | (4188) | (4188) |  |
| Settlement of plan obligation of subsidiaries |  |  |  |
| Benefits paid directly by the Company | (266) |  | (266) |
| Balance on December 31, 2024 | 27985 | 34762 | (6777) |
| Current service cost | 810 |  | 810 |
| Interest expense/interest income | 471 | 602 | (131) |
| Amounts recognized in profit or loss | 1281 | 602 | 679 |
| Remeasurement on the net defined benefit liability |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Return on plan assets (excluding amounts<br> included in net interest) |  | 2399 | (2399) |
| &nbsp;&nbsp;&nbsp;&nbsp;Actuarial gain recognized from changes in<br> demographic assumptions | (7) |  | (7) |
| &nbsp;&nbsp;&nbsp;&nbsp;Actuarial loss recognized from changes in<br> financial assumptions | 807 |  | 807 |
| &nbsp;&nbsp;&nbsp;&nbsp;Actuarial loss recognized from experience adjustments | 1501 |  | 1501 |
| Amounts recognized in other comprehensive income | 2301 | 2399 | (98) |
| Contributions from employer |  | 1118 | (1118) |
| Benefits paid | (4039) | (4039) |  |
| Benefits paid directly by the Company | (223) |  | (223) |
| Balance on December 31, 2025 | $27305 | $34842 | $(7537) |

---

------

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

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Operating costs | $488 | $416 | $320 |
| Marketing expenses | 334 | 314 | 253 |
| General and administrative expenses | 78 | 73 | 61 |
| Research and development expenses | 35 | 32 | 29 |
|  | $935 | $835 | $663 |

---

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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** | **Measurement Date** |
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
| Discount rates | 1.75% | 1.50% |
| Expected rates of salary increase | 1.00%-2.25% | 1.00%-2.50% |

---

------

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** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Discount rates |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.5% increase | $(790) | $(723) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.5% decrease | $836 | $889 |
| Expected rates of salary increase |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.5% increase | $904 | $956 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0.5% decrease | $(862) | $(791) |

---

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** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| The expected contributions to the plan for the next<br> year | $1224 | $1096 |
| The average duration of the defined benefit obligations | 6-10years | 5.7-9 years |

---

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

---

| | |
|:---|:---|
| **Year** | **Amount** |
|  | **NT$** |
|  | **(In Millions)** |
| 2026 | $2423 |
| 2027 | 3927 |
| 2028 | 3484 |
| 2029 | 2768 |
| 2030 and thereafter | 12243 |
|  | $24845 |

---

------

**30.** **EQUITY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Share capital

1)Common stocks

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Number of authorized shares | 12000 | 12000 |
| Authorized shares | $120000 | $120000 |
| Number of issued and paid shares | 7757 | 7757 |
| Issued shares | $77574 | $77574 |

---

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 million common stocks, which equaled 19 million 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Exercise their voting rights,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Sell their ADSs, and

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

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Additional paid-in capital

The adjustments of additional paid-in capital for the years ended December 31, 2023, 2024 and 2025 were as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Share<br>Premium** | **Movements of<br>Additional<br>Paid-in<br>Capital<br>for Associates <br>and Joint <br>Ventures <br>Accounted for <br>Using Equity <br>Method** | **Movements of<br>Additional<br>Paid-in<br>Capital<br>Arising from<br>Changes in<br>Equities of<br>Subsidiaries** | **Difference<br>between<br>Consideration<br>Received or<br>Paid and<br>Carrying<br>Amount of the<br>Subsidiaries'<br>Net Assets<br>during Actual<br>Disposal or<br>Acquisition** | **Donated<br>Capital** | **Stockholders'<br>Contribution<br>Due to<br>Privatization** | **Total** |
|  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Balance on January 1, 2023 | $126045 | $1 | $2138 | $987 | $25 | $20648 | $149844 |
| Unclaimed dividend |  |  |  |  | 2 |  | 2 |
| Change in additional paid-in capital from<br> investments in associates and joint ventures<br> accounted for using equity method |  | (26) |  |  |  |  | (26) |
| Actual acquisition of interests in subsidiaries |  |  |  |  |  |  |  |
| Changes in equities of subsidiaries |  |  | 8 |  |  |  | 8 |
| Balance on December 31, 2023 | $126045 | $(25) | $2146 | $987 | $27 | $20648 | $149828 |
| Balance on January 1, 2024 | $126045 | $(25) | $2146 | $987 | $27 | $20648 | $149828 |
| Unclaimed dividend |  |  |  |  | 2 |  | 2 |
| Actual disposal of interests in subsidiaries |  |  |  | 224 |  |  | 224 |
| Changes in equities of subsidiaries |  |  |  |  |  |  |  |
| Balance on December 31, 2024 | $126045 | $(25) | $2146 | $1211 | $29 | $20648 | $150054 |
| Balance on January 1, 2025 | $126045 | $(25) | $2146 | $1211 | $29 | $20648 | $150054 |
| Unclaimed dividend |  |  |  |  | 2 |  | 2 |
| Change in additional paid-in capital from<br> investments in associates and joint ventures<br> accounted for using equity method |  | (1) |  |  |  |  | (1) |
| Actual disposal of interests in subsidiaries |  |  | 2 | 234 |  |  | 236 |
| Change in additional paid-in capital for <br> not participating in the capital increase <br> of subsdiaries |  |  | 630 |  |  |  | 630 |
| Changes in equities of subsidiaries |  |  | 2 |  |  |  | 2 |
| Balance on December 31, 2025 | $126045 | $(26) | $2780 | $1445 | $31 | $20648 | $150923 |

---

------

Under the R.O.C. relevant laws, 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 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 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

Special reserve was appropriated in accordance with the relevant laws and regulations or as requested by local authority. Pursuant to existing regulations, the Company should appropriate a special reserve when the net amount of other equity items is negative at the end of reporting period upon the earnings distribution. Distributions can be made out of any subsequent reversal of the debit to other equity items.

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

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

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Appropriation of Earnings<br>(NT$)** | **Appropriation of Earnings<br>(NT$)** | **Dividends Per Share<br>(NT$)** | **Dividends Per Share<br>(NT$)** |
|  | **For Fiscal<br>Year 2023** | **For Fiscal<br>Year 2024** | **For Fiscal<br>Year 2023** | **For Fiscal<br>Year 2024** |
|  | **(In Millions)** | **(In Millions)** |  |  |
| Reversal of special reserve | $(223) | $— |  |  |
| Cash dividends | 36910 | 38787 | $4.758 | $5.000 |

---

------

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<br>of Earnings** | **Dividends<br>Per Share (NT$)** |
| Cash dividends | $40339 | $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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Beginning balance | $(125) | $521 | $564 |
| Recognized for the year |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Unrealized gain or loss |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Equity instruments | 641 | 45 | 613 |
| &nbsp;&nbsp;&nbsp;&nbsp; Income tax relating to unrealized gain or loss |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Share of profits (loss) of associates and joint <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ventures accounted for using <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; equity method | 5 | (2) | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp; Transferred accumulated gain or loss to unappropriated <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; earnings resulting from the disposal of equity<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; instruments (Note 9) |  |  |  |
| Ending balance | $521 | $564 | $1209 |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.Noncontrolling interests

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Beginning balance | $12408 | $12432 | $12980 |
| Attributable to noncontrolling interests |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income for the year | 1103 | 1319 | 1786 |
| &nbsp;&nbsp;&nbsp;&nbsp;Exchange differences arising from the translation of the <br>&nbsp;&nbsp;&nbsp;&nbsp; foreign operations | 2 | 12 | (9) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain or loss on financial assets at FVOCI | (22) | 4 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Remeasurements of defined benefit pension plans | 12 | 18 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax relating to other comprehensive income | (2) | (4) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Share of other comprehensive income (loss) of associates and <br>&nbsp;&nbsp;&nbsp;&nbsp; joint ventures accounted for using equity method | (21) | 17 | (12) |
| Cash dividends distributed by subsidiaries | (1092) | (898) | (1307) |
| Loss of control of subsidiaries (Note 15) |  |  | 20 |
| Actual disposal of interests in subsidiaries |  | 35 | 75 |
| Change in additional paid-in capital for not particiapting in the <br>&nbsp;&nbsp;&nbsp;&nbsp; capital increase of a subsidiary |  |  | 759 |
| Net increase in noncontrolling interests | 44 | 45 | 39 |
| Ending balance | $12432 | $12980 | $14340 |

---

**31.** **REVENUE**

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Revenue from contracts with customers | $220190 | $227185 | $233651 |
| Other revenues |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Government grants income | 1704 | 1393 | 1363 |
| &nbsp;&nbsp;&nbsp;&nbsp;Rental income | 1120 | 1196 | 885 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 185 | 194 | 215 |
|  | 3009 | 2783 | 2463 |
| Total | $223199 | $229968 | $236114 |

---

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

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Disaggregation of revenue

Please refer to Note 44 Segment Information for details.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Contract balances

---

| | | | |
|:---|:---|:---|:---|
|  | **January 1,** | **December 31** | **December 31** |
|  | **2024** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Trade notes and accounts receivable (Note 11) | $24842 | $26026 | $27396 |
| Contract assets |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Products and service bundling | $9297 | $10446 | $10992 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 1206 | 2306 | 2345 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less : Loss allowance | (21) | (24) | (28) |
|  | $10482 | $12728 | $13309 |
| Current | $6713 | $8401 | $8576 |
| Noncurrent | 3769 | 4327 | 4733 |
|  | $10482 | $12728 | $13309 |
| Contract liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Telecommunications business | $14016 | $13931 | $13541 |
| &nbsp;&nbsp;&nbsp;&nbsp;Project business | 6654 | 8015 | 12061 |
| &nbsp;&nbsp;&nbsp;&nbsp;Advance house and land receipts (Notes 12 and 42) | 460 | 1064 | 1228 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 518 | 832 | 1033 |
|  | $21648 | $23842 | $27863 |
| Current | $14088 | $16301 | $21296 |
| Noncurrent | 7560 | 7541 | 6567 |
|  | $21648 | $23842 | $27863 |

---

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** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Contract assets |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net increase of customer contracts | $7961 | $8617 | $8351 |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassified to trade receivables | (6574) | (7443) | (7842) |
|  | $1387 | $1174 | $509 |
| Contract liabilities |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net increase of customer contracts | $187 | $197 | $224 |
| &nbsp;&nbsp;&nbsp;&nbsp;Recognized as revenues | (173) | (184) | (215) |
|  | $14 | $13 | $9 |

---

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** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Telecommunications business | $6660 | $6721 | $6889 |
| Project business | 5290 | 4474 | 5072 |
| Others | 540 | 459 | 540 |
|  | $12490 | $11654 | $12501 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Incremental costs of obtaining contracts

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Current |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Incremental costs of obtaining contracts | $339 | $339 |
| Noncurrent |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Incremental costs of obtaining contracts | $1222 | $1109 |

---

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 and classified as current by the operating cycle. Amortization expenses for the years ended December 31 2023, 2024 and 2025 were $856 million, $906 million and $945 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 $45,355 million. The Company recognizes revenue when service is provided over contract terms. The Company expects to recognize such revenue of $26,158 million, $13,978 million and $5,219 million 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 $47,078 million. The Company recognizes revenues when the project business contract is completed and accepted by customers. The Company expects to recognize such revenue of $23,571 million, $13,431 million and $10,076 million in 2026, 2027 and 2028, respectively. Project business contracts whose expected duration are less than a year have been excluded from the aforementioned disclosure.

------

**32.** **NET INCOME**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Other income and expenses

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Loss on disposal of property, plant and equipment | $— | $(17) | $(28) |
| Impairment loss on property, plant and equipment | (299) |  | (112) |
| Reversal of impairment loss / (impairment loss) on investment <br>&nbsp;&nbsp;&nbsp;&nbsp;properties | (336) | 139 | 28 |
| Gain on disposal of intangible assets |  |  |  |
|  | $(635) | $122 | $(112) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Other income

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Dividend income | $167 | $240 | $281 |
| Rental income | 76 | 75 | 77 |
| Others | 139 | 148 | 134 |
|  | $382 | $463 | $492 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Other gains and losses

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Valuation loss on financial assets and liabilities<br> at fair value through profit or loss, net | $(98) | $(147) | $(92) |
| Foreign currency exchange gain or loss, net | (116) | (22) | 6 |
| Gain on disposal of subsidiaries |  |  | 15 |
| Gain on disposal of investments accounted for using<br> equity method, net | 6 | 85 | 733 |
| Gain on disposal of financial instruments, net |  | 1 |  |
| Others | (71) | (11) | (35) |
|  | $(279) | $(94) | $627 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Interest expenses

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Interest on bonds payable | $168 | $168 | $169 |
| Interest on lease liabilities | 105 | 128 | 154 |
| Interest paid to financial institutions | 44 | 42 | 45 |
| Others | 2 | 1 | 2 |
|  | $319 | $339 | $370 |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.Impairment loss (reversal of impairment loss)

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Contract assets | $2 | $3 | $4 |
| Trade notes and accounts receivable | $128 | $179 | $196 |
| Other receivables | $22 | $6 | $9 |
| Inventories | $23 | $60 | $34 |
| Property, plant and equipment | $299 | $— | $112 |
| Investment properties | $336 | $(139) | $(28) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.Depreciation and amortization expenses

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Property, plant and equipment | $28839 | $28707 | $29183 |
| Right-of-use assets | 4072 | 4168 | 4322 |
| Investment properties | 45 | 45 | 45 |
| Intangible assets | 6699 | 6699 | 6666 |
| Incremental costs of obtaining contracts | 856 | 906 | 945 |
| Total depreciation and amortization expenses | $40511 | $40525 | $41161 |
| Depreciation expenses summarized by functions |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating costs | $30874 | $30770 | $31350 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating expenses | 2082 | 2150 | 2200 |
|  | $32956 | $32920 | $33550 |
| Amortization expenses summarized by functions |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating costs | $7370 | $7406 | $7434 |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketing expenses | 70 | 95 | 94 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses | 68 | 63 | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development expenses | 47 | 41 | 26 |
|  | $7555 | $7605 | $7611 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.Employee benefit expenses

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Post-employment benefit |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Defined contribution plans | $963 | $1074 | $1216 |
| &nbsp;&nbsp;&nbsp;&nbsp;Defined benefit plans | 935 | 835 | 663 |
|  | 1898 | 1909 | 1879 |
| Share-based payment |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity-settled share-based payment | 8 | 8 | 10 |
| Other employee benefit (Note) | 44305 | 46964 | 49472 |
| Total employee benefit expenses | $46211 | $48881 | $51361 |
| Summary by functions |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating costs | $21858 | $22796 | $23681 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating expenses | 24353 | 26085 | 27680 |
|  | $46211 | $48881 | $51361 |

---

------

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 $2,112 million and $42 million, respectively. Such amounts have been approved by the Chunghwa'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 2023 and 2024 approved by the Board of Directors on February 23, 2024 and February 26, 2025, respectively, were as follows:

---

| | | |
|:---|:---|:---|
|  | **2023** | **2024** |
|  | **Cash** | **Cash** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Compensation distributed to the employees | $1522 | $1932 |
| Remuneration paid to the directors | 40 | 40 |

---

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

**33.** **INCOME TAX**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Income tax recognized in profit or loss

The major components of income tax expense were as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Current tax |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current tax expenses recognized for the year | $8875 | $9199 | $9721 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax on unappropriated earnings | (31) | 122 | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax adjustments on prior years | (128) | (176) | (20) |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 4 | 4 | 4 |
|  | 8720 | 9149 | 9748 |
| Deferred tax |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred tax expense recognized for the year | 218 | 176 | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax adjustments on prior years | 9 | 8 |  |
|  | 227 | 184 | 28 |
| Income tax recognized in profit or loss | $8947 | $9333 | $9776 |

---

------

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

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Income before income tax | $47008 | $47841 | $50267 |
| Income tax expense calculated at the statutory rate | $9401 | $9568 | $10053 |
| Nondeductible income and expenses in determining<br> taxable income | 28 | 25 | 20 |
| Tax-exempt income | (9) | (29) | (159) |
| Income tax on unappropriated earnings | (31) | 122 | 43 |
| Investment credits | (209) | (218) | (239) |
| Effect of different tax rates of group entities operating in<br> other jurisdictions | (7) | 10 | (14) |
| Income tax adjustments on prior years | (119) | (168) | (20) |
| Others | (107) | 23 | 92 |
| Income tax expense recognized in profit or loss | $8947 | $9333 | $9776 |

---

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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Income tax recognized in other comprehensive income

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Deferred tax |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Remeasurement on defined benefit pension plans | $31 | $451 | $20 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain or loss on financial assets at FVOCI |  |  |  |
|  | $31 | $451 | $20 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Current tax assets and liabilities

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Current tax assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax refund receivable (included in other current assets - others) | $5 | $15 |
| Current tax liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax payable | $6822 | $7346 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Deferred income tax assets and liabilities

------

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

<u>For the year ended December 31, 2023</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **January 1,<br>2023** | **Recognized <br>in Profit or<br> Loss** | **Recognized<br> in Other<br>Comprehensive<br>Income** | **December 31,<br>2023** |
|  | **NT$** | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| <u>Deferred income tax assets</u> |  |  |  |  |
| Temporary differences |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Defined benefit pension plans | $1514 | $1 | $(31) | $1484 |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for doubtful receivables<br> over quota | 184 | (41) |  | 143 |
| &nbsp;&nbsp;&nbsp;&nbsp;Valuation loss on financial assets | 24 | 21 |  | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment loss on assets |  | 60 |  | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;Valuation loss on inventory | 105 | (29) |  | 76 |
| &nbsp;&nbsp;&nbsp;&nbsp;Estimated warranty liabilities | 47 | 1 |  | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;Valuation loss on onerous contracts | 18 | 19 |  | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;Seniority bonus | 5 | 64 |  | 69 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized foreign exchange loss, net | 58 | (55) |  | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Share of profit or loss of associates<br> and joint ventures accounted for<br> using equity method | 2 | 6 |  | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued award credits liabilities | 12 | 5 |  | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 30 | (15) |  | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 28 | (3) |  | 25 |
|  | 2027 | 34 | (31) | 2030 |
| Loss carryforwards | 170 | (101) |  | 69 |
|  | $2197 | $(67) | $(31) | $2099 |
| <u>Deferred income tax liabilities</u> |  |  |  |  |
| Temporary differences |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Defined benefit pension plans | $(2114) | $(146) | $— | $(2260) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue for award credits | (70) | 4 |  | (66) |
| &nbsp;&nbsp;&nbsp;&nbsp;Land value incremental tax | (95) |  |  | (95) |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible assets | (20) | 2 |  | (18) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized foreign exchange gain, net | (1) | (11) |  | (12) |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | (1) | (9) |  | (10) |
|  | $(2301) | $(160) | $— | $(2461) |

---

------

<u>For the year ended December 31, 2024</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **January 1,<br>2024** | **Recognized <br>in Profit or<br> Loss** | **Recognized<br> in Other<br>Comprehensive<br>Income** | **December 31,<br>2024** |
|  | **NT$** | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| <u>Deferred income tax assets</u> |  |  |  |  |
| Temporary differences |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Defined benefit pension plans | $1484 | $11 | $(450) | $1045 |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for doubtful receivables<br> over quota | 143 | (25) |  | 118 |
| &nbsp;&nbsp;&nbsp;&nbsp;Valuation loss on financial assets | 45 | 29 |  | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment loss on assets | 60 |  |  | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;Valuation loss on inventory | 76 | 3 |  | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp;Estimated warranty liabilities | 48 | 8 |  | 56 |
| &nbsp;&nbsp;&nbsp;&nbsp;Valuation loss on onerous contracts | 37 | 8 |  | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;Seniority bonus | 69 | 6 |  | 75 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized foreign exchange loss, net | 3 | (2) |  | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Share of profit or loss of associates<br> and joint ventures accounted for<br> using equity method | 8 | 7 |  | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued award credits liabilities | 17 | (2) |  | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 15 | (10) |  | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 25 | 48 |  | 73 |
|  | 2030 | 81 | (450) | 1661 |
| Loss carryforwards | 69 | (69) |  |  |
|  | $2099 | $12 | $(450) | $1661 |
| <u>Deferred income tax liabilities</u> |  |  |  |  |
| Temporary differences |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Defined benefit pension plans | $(2260) | $(142) | $(1) | $(2403) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue for award credits | (66) | (45) |  | (111) |
| &nbsp;&nbsp;&nbsp;&nbsp;Land value incremental tax | (95) |  |  | (95) |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible assets | (18) | 2 |  | (16) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized foreign exchange gain, net | (12) | 6 |  | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Valuation gain on financial assets, net |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | (10) | (17) |  | (27) |
|  | $(2461) | $(196) | $(1) | $(2658) |

---

------

<u>For the year ended December 31, 2025</u>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **January 1,<br>2025** | **Recognized <br>in Profit or<br> Loss** | **Recognized<br> in Other<br>Comprehensive<br>Income** | **Effect of Deconsolidation of Subsidiaries<br>(Note 15)** | **December 31,<br>2025** |
|  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| <u>Deferred income tax assets</u> |  |  |  |  |  |
| Temporary differences |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Defined benefit pension plans | $1045 | $16 | $(19) | $— | $1042 |
| &nbsp;&nbsp;&nbsp;&nbsp;Allowance for doubtful<br> receivables over quota | 118 | 41 |  |  | 159 |
| &nbsp;&nbsp;&nbsp;&nbsp;Valuation loss on financial <br> assets | 74 | 20 |  |  | 94 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment loss on assets | 60 | 22 |  |  | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp;Valuation loss on inventory | 79 | 1 |  | (2) | 78 |
| &nbsp;&nbsp;&nbsp;&nbsp;Decommissioning liabilities |  | 60 |  |  | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;Estimated warranty liabilities | 56 | (5) |  |  | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;Valuation loss on onerous <br> contracts | 45 | 3 |  |  | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;Seniority bonus | 75 | (32) |  |  | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized foreign exchange <br> loss, net | 1 | 19 |  |  | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;Share of profit or loss of<br> associates and joint <br> ventures accounted for <br> using equity method | 15 | 4 |  |  | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued award credits <br> liabilities | 15 | (2) |  |  | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 5 | (5) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 73 |  |  |  | 73 |
|  | $1661 | $142 | $(19) | $(2) | $1782 |
| <u>Deferred income tax liabilities</u> |  |  |  |  |  |
| Temporary differences |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Defined benefit pension plans | $(2403) | $(147) | $(1) | $— | $(2551) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue for award <br> credits | (111) | (12) |  |  | (123) |
| &nbsp;&nbsp;&nbsp;&nbsp;Land value incremental tax | (95) |  |  |  | (95) |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible assets | (16) | 3 |  |  | (13) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized foreign exchange <br> gain, net | (6) | 3 |  |  | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Valuation gain on financial assets, net |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | (27) | (17) |  |  | (44) |
|  | $(2658) | $(170) | $(1) | $— | $(2829) |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.Unused loss carryforwards and deductible temporary differences for which no deferred tax assets have been recognized in the consolidated balance sheets

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Loss carryforwards |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Expire in 2025 | $17 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Expire in 2026 | 10 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Expire in 2027 | 3 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Expire in 2028 | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Expire in 2029 | 2 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Expire in 2030 | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Expire in 2031 | 1 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Expire in 2032 | 6 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Expire in 2033 | 20 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;Expire in 2034 | 12 | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Expire in 2035 |  | 8 |
|  | $73 | $53 |
| Deductible temporary differences | $16 | $18 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. Pillar Two Model Rules

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

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**34.** **EARNINGS PER SHARE**

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** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Net income used to compute the basic earnings<br> per share |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to the parent | $36958 | $37189 | $38705 |
| Assumed conversion of all dilutive potential<br> common stocks |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee stock options and employee compensation<br> of subsidiaries | (5) | (3) | (5) |
| Net income used to compute the diluted earnings<br> per share | $36953 | $37186 | $38700 |

---

**Weighted Average Number of Common Stocks**

**(Millions Shares)**

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
| Weighted average number of common stocks used<br> to compute the basic earnings per share | 7757 | 7757 | 7757 |
| Assumed conversion of all dilutive potential<br> common stocks |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee compensation | 8 | 18 | 19 |
| Weighted average number of common stocks used<br> to compute the diluted earnings per share | 7765 | 7775 | 7776 |

---

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.

**35.** **SHARE-BASED PAYMENT ARRANGEMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

The compensation costs for stock options for the years ended December 31, 2023 and 2024 were $5.0 million and $2.7 million, respectively. CHIEF did not recognize any compensation costs for stock options for the year ended December 31, 2025.

------

CHIEF modified the plan terms of stock options granted on November 13, 2020 in August 2023 and July 2024; therefore, the exercise price changed from $193.50 to $171.70 and $166.50 per share, respectively. The modification did not cause any incremental fair value granted.

Information about CHIEF's outstanding stock options for the years ended December 31, 2023, 2024 and 2025 was as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** |
|  | **Granted on <br>November 13, 2020** | **Granted on <br>November 13, 2020** | **Granted on <br>November 13, 2020** | **Granted on <br>November 13, 2020** | **Granted on <br>November 13, 2020** | **Granted on <br>November 13, 2020** |
|  | **Number of<br>Options** | **Weighted<br>Average<br>Exercise<br>Price (NT$)** | **Number of<br>Options** | **Weighted<br>Average<br>Exercise<br>Price (NT$)** | **Number of<br>Options** | **Weighted<br>Average<br>Exercise<br>Price (NT$)** |
| <u>Employee stock options</u> |  |  |  |  |  |  |
| Options outstanding at <br> beginning of the year | 142.25 | $193.50 | 93 | $171.70 | 7 | $166.50 |
| Options exercised | (47.00) | 171.70 | (85) | 166.50 | (7) | 166.50 |
| Options forfeited | (2.25) |  | (1) |  |  |  |
| Options outstanding at end of <br> the year | 93.00 | 171.70 | 7 | 166.50 |  |  |
| Options exercisable at end of <br> the year |  |  | 7 | 166.50 |  |  |
| Weighted average remaining <br> contractual life (years) | 1.87 |  | 0.87 |  |  |  |

---

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<br>Granted on<br>November 13,<br> 2020** |
| Grant-date share price (NT$) | $356.00 |
| Exercise price (NT$) | $206.00 |
| Dividend yield |  |
| Risk-free interest rate | 0.18% |
| Expected life | 5 years |
| Expected volatility | 34.61% |
| Weighted average fair value of grants (NT$) | $173893 |

---

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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 3.7 million shares and simultaneously reserved 0.6 million 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 $0.5 million.

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<br>Granted on<br>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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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, 2023, 2024 and 2025 were $0.5 million, $0.2 million and $74 thousand, respectively.

Information about CHTSC's outstanding stock options for the years ended December 31, 2023, 2024 and 2025 was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
|  | **Granted on December 20, 2019** | **Granted on December 20, 2019** | **Granted on February 20, 2021** | **Granted on February 20, 2021** |
|  | **Number of<br>Options** | **Weighted<br>Average <br>Exercise Price (NT$)** | **Number of<br>Options** | **Weighted<br>Average <br>Exercise Price (NT$)** |
| <u>Employee stock options</u> |  |  |  |  |
| Options outstanding at beginning of the year | 1083 | $19.085 | 2343 | $19.085 |
| Options exercised | (1002) | 19.085 | (778) | 19.085 |
| Options forfeited | (41) |  | (46) |  |
| Options outstanding at end of the year | 40 | 19.085 | 1519 | 19.085 |
| Options exercisable at end of the year | 5 | 19.085 | 7 | 19.085 |
| Weighted average remaining contractual life (years) | 0.97 |  | 2.14 |  |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
|  | **Granted on December 20, 2019** | **Granted on December 20, 2019** | **Granted on February 20, 2021** | **Granted on February 20, 2021** |
|  | **Number of<br>Options** | **Weighted<br>Average <br>Exercise Price (NT$)** | **Number of<br>Options** | **Weighted<br>Average <br>Exercise Price (NT$)** |
| <u>Employee stock options</u> |  |  |  |  |
| Options outstanding at beginning of the year | 40 | $19.085 | 1519 | $19.085 |
| Options exercised | (20) | 19.085 | (699) | 19.085 |
| Options forfeited | (20) |  | (165) |  |
| 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 |  |

---

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** |
|  | **Granted on February 20, 2021** | **Granted on February 20, 2021** |
|  | **Number of<br>Options** | **Weighted<br>Average <br>Exercise Price (NT$)** |
| <u>Employee stock options</u> |  |  |
| 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 |  |

---

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<br>Granted on<br>December 20,<br>2019** | **Stock Options<br>Granted on<br>February 20,<br>2021** |
| Grant-date share price (NT$) | $20.17 | $23.76 |
| Exercise price (NT$) | $19.085 | $19.085 |
| Dividend yield | 12.49% | 15.18% |
| Risk-free interest rate | 0.54% | 0.25% |
| Expected life | 5 years | 5 years |
| Expected volatility | 42.41% | 47.35% |
| Weighted average fair value of grants (NT$) | $2470 | $3350 |

---

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

The compensation costs for stock options for the years ended December 31, 2023, 2024 and 2025 were $2.9 million, $4.9 million and $9.7 million, respectively.

CLPT modified the plan terms of stock options granted on February 26, 2021 in September 2023 and October 2024; therefore, the exercise price changed from $15.90 to $14.40 and $13.30 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 September 2023, October 2024 and October 2025; therefore, the exercise price changed from $16.87 to $15.30, $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 September 26, 2023 in September 2023, October 2024 and October 2025; therefore, the exercise price changed from $16.87 to $15.30, $14.10 and $12.60 per share, respectively. The modification did not cause any incremental fair value granted.

Information about CLPT's outstanding stock options for the years ended December 31, 2023, 2024 and 2025 was as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** | **Year Ended December 31, 2023** |
|  | **Granted on February 26, 2021** | **Granted on February 26, 2021** | **Granted on May 31, 2022** | **Granted on May 31, 2022** | **Granted on September 26, 2023** | **Granted on September 26, 2023** |
|  | **Number of<br>Options** | **Weighted<br>Average <br>Exercise Price (NT$)** | **Number of<br>Options** | **Weighted<br>Average <br>Exercise Price (NT$)** | **Number of<br>Options** | **Weighted<br>Average <br>Exercise Price (NT$)** |
| <u>Employee stock options</u> |  |  |  |  |  |  |
| Options outstanding at beginning of the year | 510 | $15.90 | 440 | $16.87 |  | $— |
| Options granted |  |  |  |  | 755 | 16.87 |
| Options exercised | (55) | 15.90 |  |  |  |  |
| Options forfeited | (15) |  |  |  |  |  |
| Options outstanding at end of the year | 440 | 14.40 | 440 | 15.30 | 755 | 15.30 |
| Options exercisable at end of the year | 192 | 14.40 |  |  |  |  |
| Weighted average remaining contractual life <br> (years) | 1.16 |  | 2.41 |  | 3.74 |  |

---

------

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
|  | **Granted on February 26, 2021** | **Granted on February 26, 2021** | **Granted on May 31, 2022** | **Granted on May 31, 2022** | **Granted on September 26, 2023** | **Granted on September 26, 2023** |
|  | **Number of<br>Options** | **Weighted<br>Average <br>Exercise Price (NT$)** | **Number of<br>Options** | **Weighted<br>Average <br>Exercise Price (NT$)** | **Number of<br>Options** | **Weighted<br>Average <br>Exercise Price (NT$)** |
| <u>Employee stock options</u> |  |  |  |  |  |  |
| Options outstanding at beginning of the year | 440 | $14.40 | 440 | $15.30 | 755 | $15.30 |
| Options exercised | (415) | 14.40 | (220) | 15.30 |  |  |
| Options forfeited |  |  |  |  | (5) |  |
| Options outstanding at end of the year | 25 | 13.30 | 220 | 14.10 | 750 | 14.10 |
| Options exercisable at end of the year | 25 | 13.30 |  |  |  |  |
| Weighted average remaining contractual life <br> (years) | 0.16 |  | 1.41 |  | 2.74 |  |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** |
|  | **Granted on February 26, 2021** | **Granted on February 26, 2021** | **Granted on May 31, 2022** | **Granted on May 31, 2022** | **Granted on September 26, 2023** | **Granted on September 26, 2023** | **Granted on October 30, 2025** | **Granted on October 30, 2025** |
|  | **Number of<br>Options** | **Weighted<br>Average <br>Exercise Price (NT$)** | **Number of<br>Options** | **Weighted<br>Average <br>Exercise Price (NT$)** | **Number of<br>Options** | **Weighted<br>Average <br>Exercise Price (NT$)** | **Number of<br>Options** | **Weighted<br>Average <br>Exercise Price (NT$)** |
| <u>Employee stock options</u> |  |  |  |  |  |  |  |  |
| Options outstanding at beginning <br> of the year | 25 | $13.30 | 220 | $14.10 | 750 | $14.10 |  | $— |
| Options granted |  |  |  |  |  |  | 305 | 16.87 |
| Options exercised |  |  | (220) | 12.60 | (750) | 12.60 | (305) | 16.87 |
| Options forfeited | (25) |  |  |  |  |  |  |  |
| Options outstanding at end <br> of the year |  |  |  |  |  |  |  |  |
| Options exercisable at end <br> of the year |  |  |  |  |  |  |  |  |
| Weighted average remaining <br> contractual life (years) |  |  |  |  |  |  |  |  |

---

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<br>Granted on<br>February 26,<br>2021** | **Stock Options<br>Granted on<br>May 31,<br>2022** | **Stock Options <br>Granted on <br>September 26, <br>2023** | **Stock Options <br>Granted on <br>October 30, <br>2025** |
| Grant-date share price (NT$) | $17.63 | $18.66 | $28.43 | $33.41 |
| Exercise price (NT$) | $16.87 | $16.87 | $16.87 | $16.87 |
| Dividend yield |  |  |  |  |
| Risk-free interest rate | 0.31% | 0.98% | 1.10% | 1.20% |
| Expected life | 4 years | 4 years | 4 years | 0.08 years |
| Expected volatility | 35.22% | 35.76% | 31.99% | 29.59% |
| Weighted average fair value of grants (NT$) | $4750 | $5665 | $13225 | $16560 |

---

------

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 7.7 million shares and simultaneously reserved 1.2 million 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 $1.8 million.

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<br>Granted on<br>November 7,<br> 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.

**36.** **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** | **Year Ended December 31** | **Year Ended December 31** |
| **Investing activities** | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Additions of property, plant and equipment | $30398 | $28576 | $27766 |
| Changes in other payables | 343 | 180 | (68) |
| Payments for acquisition of property, plant and equipment | $30741 | $28756 | $27698 |

---

------

**Financing activities**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **Changes in Non-Cash Transactions** | **Changes in Non-Cash Transactions** |  |  |
|  | **Balance on<br>January 1, <br>2023** | **Cash Flows<br>from Financing <br>Activities** | **New Leases** | **Others** | **Cash Flows<br>from Operating<br>Activities - Interest<br>Paid** | **Balance on<br>December <br>31, 2023** |
|  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Lease liabilities | $10673 | $(3884) | $4415 | $(124) | $(105) | $10975 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **Changes in Non-Cash Transactions** | **Changes in Non-Cash Transactions** |  |  |
|  | **Balance on<br>January 1, <br>2024** | **Cash Flows<br>from Financing <br>Activities** | **New Leases** | **Others** | **Cash Flows<br>from Operating<br>Activities - Interest<br>Paid** | **Balance on<br>December <br>31, 2024** |
|  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Lease liabilities | $10975 | $(3944) | $4092 | $(103) | $(128) | $10892 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | **Changes in Non-Cash Transactions** | **Changes in Non-Cash Transactions** |  |  |
|  | **Balance on<br>January 1, <br>2025** | **Cash Flows<br>from Financing <br>Activities** | **New Leases** | **Others** | **Cash Flows<br>from Operating<br>Activities - Interest<br>Paid** | **Balance on<br>December <br>31, 2025** |
|  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Lease liabilities | $10892 | $(4135) | $4445 | $(157) | $(154) | $10891 |

---

**37.** **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.

------

**38.** **FINANCIAL INSTRUMENTS**

**Categories of Financial Instruments**

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| <u>Financial assets</u> |  |  |
| Measured at FVTPL |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mandatorily measured at FVTPL | $1005 | $1214 |
| Hedging financial assets | 1 | 3 |
| Financial assets at amortized cost (Note a) | 91049 | 93016 |
| Financial assets at FVOCI | 4667 | 6806 |
| <u>Financial liabilities</u> |  |  |
| Measured at FVTPL |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Held for trading |  |  |
| Hedging financial liabilities | 2 |  |
| Financial liabilities at amortized cost (Note b) | 69231 | 63015 |

---

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

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

**Financial Risk Management Objectives**

The main financial instruments of the Company include investments in equity and debt instruments, trade notes and accounts receivable, trade notes and accounts payable, lease liabilities, loans and bonds payable. The Company's Finance Department provides services to its business units, co-ordinates access to domestic and international capital markets, monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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

The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities at the balance sheet dates were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;USD | $2962 | $3982 |
| &nbsp;&nbsp;&nbsp;&nbsp;EUR | 57 | 46 |
| &nbsp;&nbsp;&nbsp;&nbsp;SGD | 1075 | 2235 |
| &nbsp;&nbsp;&nbsp;&nbsp;RMB | 176 | 98 |
| Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;USD | 1216 | 1594 |
| &nbsp;&nbsp;&nbsp;&nbsp;EUR | 1039 | 1459 |
| &nbsp;&nbsp;&nbsp;&nbsp;SGD | 1739 | 1561 |
| &nbsp;&nbsp;&nbsp;&nbsp;RMB | 41 | 45 |

---

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

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;USD | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;EUR | 1 | 6 |
| Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;USD |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;EUR | 2 |  |

---

------

<u>Foreign currency sensitivity analysis</u>

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** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Profit or loss |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Monetary assets and liabilities (a) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;USD | $51 | $87 | $119 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EUR | (30) | (49) | (71) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SGD | (47) | (33) | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RMB | 6 | 7 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives (b) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;USD |  | 2 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EUR | 7 | 1 | 5 |
| Equity |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives (c) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EUR | 1 | 17 | 7 |

---

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)This is mainly attributable to forward exchange contracts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Fair value interest rate risk |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets | $47563 | $41451 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial liabilities | 41445 | 36419 |
| Cash flow interest rate risk |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets | 12950 | 18424 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial liabilities | 1785 | 1600 |

---

------

<u>Interest rate sensitivity analysis</u>

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 $17 million, $28 million and $42 million for the years ended December 31, 2023, 2024 and 2025, 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.

<u>Equity price sensitivity analysis</u>

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 for the year ended December 31, 2023 would have increased/decreased by $51 million and $221 million as a result of the changes in fair value of financial assets at FVTPL and financial assets at FVOCI, respectively. If equity prices had been 5% higher/lower, pre-tax profit and pre-tax other comprehensive income for the year ended December 31, 2024 would have increased/decreased by $48 million and $233 million as a result of the changes in fair value of financial assets at FVTPL and financial assets at FVOCI, respectively. If equity prices had been 5% higher/lower, pre-tax profit and pre-tax other comprehensive income for the year ended December 31, 2025 would have increased/decreased by $57 million and $340 million as a result of the changes in fair value of financial assets at FVTPL and financial assets at FVOCI, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Credit risk

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

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

------

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

<u>December 31, 2024</u>

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Weighted<br>Average<br>Effective<br>Interest<br>Rate (%)** | **Less than<br>1 Month** | **1-3<br>Months** | **3 Months<br>to 1 Year** | **1-5 Years** | **More than<br>5 Years** | **Total** |
|  |  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  |  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Non-derivative financial liabilities |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-interest bearing |  | $42220 | $— | $2500 | $5311 | $— | $50031 |
| &nbsp;&nbsp;&nbsp;&nbsp;Floating interest rate instruments | 2.08 | 104 | 6 | 79 | 1691 |  | 1880 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed interest rate instruments | 0.54 | 79 | 45 | 8969 | 17248 | 4719 | 31060 |
|  |  | $42403 | $51 | $11548 | $24250 | $4719 | $82971 |

---

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** |
|  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Lease liabilities | $3586 | $5255 | $2143 | $164 | $11148 |

---

------

<u>December 31, 2025</u>

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Weighted<br>Average<br>Effective<br>Interest<br>Rate (%)** | **Less than<br>1 Month** | **1-3<br>Months** | **3 Months<br>to 1 Year** | **1-5 Years** | **More than<br>5 Years** | **Total** |
|  |  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  |  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Non-derivative financial liabilities |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-interest bearing |  | $41947 | $— | $2783 | $5262 | $— | $49992 |
| &nbsp;&nbsp;&nbsp;&nbsp;Floating interest rate instruments | 2.10 | 3 | 6 | 25 | 1625 |  | 1659 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed interest rate instruments | 0.73 | 225 | 178 | 2097 | 22675 | 1002 | 26177 |
|  |  | $42175 | $184 | $4905 | $29562 | $1002 | $77828 |

---

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** |
|  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Lease liabilities | $3918 | $5392 | $1685 | $153 | $11148 |

---

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 <br>1 Month** | **1-3 Months** | **3 Months to <br>1 Year** | **1-5 Years** | **Total** |
|  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| <u>December 31, 2024</u> |  |  |  |  |  |
| <u>Gross settled</u> |  |  |  |  |  |
| Forward exchange contracts |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Inflows | $46 | $350 | $— | $— | $396 |
| &nbsp;&nbsp;&nbsp;&nbsp;Outflows | 46 | 351 |  |  | 397 |
|  | $— | $(1) | $— | $— | $(1) |
| <u>December 31, 2025</u> |  |  |  |  |  |
| <u>Gross settled</u> |  |  |  |  |  |
| Forward exchange contracts |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Inflows | $85 | $184 | $— | $— | $269 |
| &nbsp;&nbsp;&nbsp;&nbsp;Outflows | 85 | 178 |  |  | 263 |
|  | $— | $6 | $— | $— | $6 |

---

------

2)Financing facilities

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Unsecured bank loan facilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount used | $250 | $340 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount unused | 56438 | 26974 |
|  | $56688 | $27314 |
| Secured bank loan facilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount used | $1600 | $1600 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount unused | 15 | 15 |
|  | $1615 | $1615 |

---

**39.** **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).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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, 2024** | **December 31, 2024** | **December 31, 2025** | **December 31, 2025** |
|  | **Carrying Value** | **Fair Value** | **Carrying Value** | **Fair Value** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Financial assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial assets at amortized cost |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate bonds | $2000 | $2002 | $2020 | $2030 |
| Financial liabilities |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial liabilities at amortized cost |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bonds payable | $30488 | $30485 | $25188 | $25197 |

---

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.

------

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

<u>December 31, 2024</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Financial assets at FVTPL |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives | $— | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-listed stocks |  |  | 661 | 661 |
| &nbsp;&nbsp;&nbsp;&nbsp;Limited partnership |  |  | 307 | 307 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other investing agreements |  |  | 37 | 37 |
|  | $— | $— | $1005 | $1005 |
| Financial assets at FVOCI |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Listed and emerging stocks | $126 | $— | $— | $126 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-listed stocks |  |  | 4541 | 4541 |
|  | $126 | $— | $4541 | $4667 |
| Hedging financial assets | $— | $1 | $— | $1 |
| Hedging financial liabilities | $— | $2 | $— | $2 |

---

<u>December 31, 2025</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Financial assets at FVTPL |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives | $— | $3 | $— | $3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-listed stocks |  |  | 641 | 641 |
| &nbsp;&nbsp;&nbsp;&nbsp;Limited partnership |  |  | 500 | 500 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other investing agreements |  |  | 70 | 70 |
|  | $— | $3 | $1211 | $1214 |
| Financial assets at FVOCI |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Listed and emerging stocks | $316 | $— | $— | $316 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-listed stocks |  |  | 6490 | 6490 |
|  | $316 | $— | $6490 | $6806 |
| Financial liabilities at FVTPL |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivatives | $— | $— | $— | $— |
| Hedging financial assets | $— | $3 | $— | $3 |
| Hedging financial liabilities | $— | $— | $— | $— |

---

------

There were no transfers between Levels 1 and 2 for the years ended December 31, 2023, 2024 and 2025.

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

<u>2023</u>

---

| | | | |
|:---|:---|:---|:---|
| **Financial Assets** | **Measured at<br> Fair Value<br> through Profit<br> or Loss** | **Measured at<br> Fair Value<br> through Other<br> Comprehensive<br> Income** | **Total** |
|  | **NT$** | **NT$** | **NT$** |
|  |  | **(In Millions)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance at January 1, 2023 | $1020 | $3218 | $4238 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition | 133 | 305 | 438 |
| &nbsp;&nbsp;&nbsp;&nbsp;Recognized in profit or loss under "Other gains and losses" | (95) |  | (95) |
| &nbsp;&nbsp;&nbsp;&nbsp;Recognized in other comprehensive income under "Unrealized<br> gain or loss on financial assets at fair value through<br> other comprehensive income" |  | 649 | 649 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from capital reduction from investees and profit <br> distribution | (22) | (3) | (25) |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance at December 31, 2023 | $1036 | $4169 | $5205 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain or loss in 2023 | $(95) |  |  |

---

<u>2024</u>

---

| | | | |
|:---|:---|:---|:---|
| **Financial Assets** | **Measured at<br> Fair Value<br> through Profit<br> or Loss** | **Measured at<br> Fair Value<br> through Other<br> Comprehensive<br> Income** | **Total** |
|  | **NT$** | **NT$** | **NT$** |
|  |  | **(In Millions)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance at January 1, 2024 | $1036 | $4169 | $5205 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition | 159 | 313 | 472 |
| &nbsp;&nbsp;&nbsp;&nbsp;Recognized in profit or loss under "Other gains and losses" | (147) |  | (147) |
| &nbsp;&nbsp;&nbsp;&nbsp;Recognized in other comprehensive income under "Unrealized<br> gain or loss on financial assets at fair value through<br> other comprehensive income" |  | 62 | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from capital reduction from investees and profit <br> distribution | (43) | (3) | (46) |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance at December 31, 2024 | $1005 | $4541 | $5546 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain or loss in 2024 | $(143) |  |  |

---

------

<u>2025</u>

---

| | | | |
|:---|:---|:---|:---|
| **Financial Assets** | **Measured at<br> Fair Value<br> through Profit<br> or Loss** | **Measured at<br> Fair Value<br> through Other<br> Comprehensive<br> Income** | **Total** |
|  | **NT$** | **NT$** | **NT$** |
|  |  | **(In Millions)** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance at January 1, 2025 | $1005 | $4541 | $5546 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition | 326 | 1465 | 1791 |
| &nbsp;&nbsp;&nbsp;&nbsp;Disposal |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Recognized in profit or loss under "Other gains and losses" | (95) |  | (95) |
| &nbsp;&nbsp;&nbsp;&nbsp;Recognized in other comprehensive income under "Unrealized<br> gain or loss on financial assets at fair value through<br> other comprehensive income" |  | 523 | 523 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from capital reduction from investees and profit <br> distribution | (25) | (39) | (64) |
| &nbsp;&nbsp;&nbsp;&nbsp;Balance at December 31, 2025 | $1211 | $6490 | $7701 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain or loss in 2025 | $(95) |  |  |

---

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 film and drama 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** | **December 31** |
|  | **2024** | **2025** |
| Discount for lack of marketability | 20.00%-30.00% | 10.00%-30.00% |
| Noncontrolling interests discount | 15.00%-29.04% | 10.00%-29.04% |
| Growth rate of long-term revenue | 0.12% | 1.33% |
| Discount rate | 8.32%-14.40% | 8.21%-11.60% |

---

------

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** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Discount for lack of marketability |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;5% increase | $(63) | $(131) |
| &nbsp;&nbsp;&nbsp;&nbsp;5% decrease | $63 | $131 |
| Noncontrolling interests discount |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;5% increase | $(51) | $(121) |
| &nbsp;&nbsp;&nbsp;&nbsp;5% decrease | $51 | $121 |
| Growth rate of long-term revenue |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;0.1% increase | $31 | $40 |
| &nbsp;&nbsp;&nbsp;&nbsp;0.1% decrease | $(31) | $(40) |
| Discount rate |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;1% increase | $(363) | $(458) |
| &nbsp;&nbsp;&nbsp;&nbsp;1% decrease | $439 | $560 |

---

**40.** **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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Chunghwa Telecom Foundation | A nonprofit organization of which the funds<br> donated by Chunghwa exceeds one third of<br> its total funds |
| &nbsp;&nbsp;&nbsp;&nbsp;Senao Technical and Cultural Foundation | A nonprofit organization of which the funds<br> donated by SENAO exceeds one third of its<br> total funds |
| &nbsp;&nbsp;&nbsp;&nbsp;Ba Gua Liao Foundation | Substantial related party of SENAO |
| &nbsp;&nbsp;&nbsp;&nbsp;Chi Yue Charity Foundation | Substantial related party of SENAO |
| &nbsp;&nbsp;&nbsp;&nbsp;Tsann Kuen Enterprise Co., Ltd. | Substantial related party of SENAO |
| &nbsp;&nbsp;&nbsp;&nbsp;E-Life Mall Co., Ltd. | Substantial related party of SENAO |
| &nbsp;&nbsp;&nbsp;&nbsp;Engenius Technologies Co., Ltd. | Substantial related party of SENAO |
| &nbsp;&nbsp;&nbsp;&nbsp;Cheng Keng Investment Co., Ltd. | Substantial related party of SENAO |
| &nbsp;&nbsp;&nbsp;&nbsp;Cheng Feng Investment Co., Ltd. | Substantial related party of SENAO |
| &nbsp;&nbsp;&nbsp;&nbsp;All Oriented Investment Co., Ltd. | Substantial related party of SENAO |
| &nbsp;&nbsp;&nbsp;&nbsp;Hwa Shun Investment Co., Ltd. | Substantial related party of SENAO |
| &nbsp;&nbsp;&nbsp;&nbsp;Yu Yu Investment Co., Ltd. | Substantial related party of SENAO |
| &nbsp;&nbsp;&nbsp;&nbsp;Kangsin Co., Ltd. | Substantial related party of SENAO |
| &nbsp;&nbsp;&nbsp;&nbsp;UDN Digital Co., Ltd. | Investor of significant influence over SFD |
| &nbsp;&nbsp;&nbsp;&nbsp;Shenzhen Century Communication Co., Ltd. | Investor of significant influence over SCT |
| &nbsp;&nbsp;&nbsp;&nbsp;Advantech Co., Ltd. | Investor of significant influence over IISI |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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** | **Revenues** | **Revenues** |
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Associates | $403 | $402 | $330 |
| Others | 57 | 65 | 182 |
|  | $460 | $467 | $512 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Operating Costs and Expenses** | **Operating Costs and Expenses** | **Operating Costs and Expenses** |
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Associates | $1322 | $1108 | $835 |
| Others | 74 | 82 | 87 |
|  | $1396 | $1190 | $922 |

---

2)Non-operating transactions

---

| | | | |
|:---|:---|:---|:---|
|  | **Non-operating Income and Expenses** | **Non-operating Income and Expenses** | **Non-operating Income and Expenses** |
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  |  | **(In Millions)** |  |
| Associates | $38 | $40 | $44 |
| Others | 2 | 1 | 5 |
|  | $40 | $41 | $49 |

---

3)Receivables

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Associates | $184 | $184 |
| Others | 9 | 29 |
|  | $193 | $213 |

---

------

4)Payables

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Associates | $476 | $163 |
| Others | 4 | 14 |
|  | $480 | $177 |

---

5)Customers' deposits

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Associates | $4 | $2 |

---

6)Acquisition of property, plant and equipment

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Associates | $173 | $144 | $22 |

---

7)Acquisition of intangible assets

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Associates | $— | $— | $— |

---

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 million (SGD 261 million), including a prepayment of $3,068 million 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 $1,125 million from the aforementioned lease extension.

The lease liabilities of ST-2 Satellite Ventures Pte., Ltd. as of December 31, 2024 and 2025 were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Lease liabilities - current | $204 | $297 |
| Lease liabilities - noncurrent | 1463 | 1192 |
|  | $1667 | $1489 |

---

------

The interest expense recognized for the aforementioned lease liabilities for the years ended December 31, 2023, 2024 and 2025 were $8 million, $7 million and $7 million, respectively.

9) Others

The bank deposits and other financial assets of NCB as of December 31, 2024 and 2025 were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Bank deposits and other financial assets | $2709 | $3238 |

---

The interest income recognized for the aforementioned bank deposits and other financial assets for the years ended December 31, 2023, 2024 and 2025 were $1 million, $25 million and 49 million, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Compensation of key management personnel

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

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  |  | **(In Millions)** |  |
| Short-term employee benefits | $352 | $369 | $438 |
| Post-employment benefits | 26 | 9 | 15 |
| Share-based payment | 1 | 1 | 1 |
|  | $379 | $379 | $454 |

---

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

**41.** **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** | **December 31** |
|  | **2024** | **2025** |
|  | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** |
| Property, plant and equipment | $2439 | $2410 |
| Land held under development (included in inventories) | 1999 | 1999 |
| Restricted assets (included in other assets - others) | 1189 | 1306 |
|  | $5627 | $5715 |

---

**42.** **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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Acquisitions of property, plant and equipment of $21,660 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Acquisitions of telecommunications-related inventory of $8,021 million.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Unused letters of credit amounting to $10 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.A commitment to contribute $2,000 million to a Piping Fund administered by the Taipei City Government, of which $1,000 million 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 million upon notification from the Taipei City Government.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.Chunghwa signed a contract, the ST-2 Satellite Succession Plan, with Singapore Telecommunications Limited, for a total transaction price of EUR 177 million and SGD 51 million; as of December 31, 2025, Chunghwa had paid the amount of EUR 118 million. Chunghwa signed a contract for Astranis block 3 Satellite with Astranis Space Technologies Corp. for a total transaction price of USD 115 million; as of December 31, 2025, Chunghwa had paid the amount of USD 17 million. The aforementioned amounts are classified as prepayments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.The Company has signed the house and land presale contracts amounting to $7,691 million and has received $1,228 million in accordance with the contracts (classified as contract liabilities).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 million. Chunghwa and CDCC Capital invested a total of $650 million in December 2025 (classified as other assets - prepayments for investments).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.Chunghwa entered into long term energy purchase contracts with the suppliers, under which the contract terms specify the performance periods, quantities and prices that Chunghwa is required to fulfill.

**43.** **SIGNIFICANT SUBSEQUENT EVENTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.CHPT issued its first 3-year unsecured convertible corporate bond at the amount of $2,569 million in January 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.On February 25, 2026, the Board of Directors of CHIEF resolved to repurchase 1 million 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.

**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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Segment revenues and operating results

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Consumer<br>Business** | **Enterprise <br>Business** | **International<br>Business** | **Others** | **Total** |
|  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| <u>Year ended December 31, 2023</u> |  |  |  |  |  |
| Revenues |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;From external customers | $137093 | $73005 | $9188 | $3913 | $223199 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intersegment revenues | 2626 | 1014 | 995 | 406 | 5041 |
| Segment revenues | $139719 | $74019 | $10183 | $4319 | 228240 |
| Intersegment elimination |  |  |  |  | (5041) |
| Consolidated revenues |  |  |  |  | $223199 |
| Segment income before income tax | $28907 | $14363 | $2141 | $1597 | $47008 |
| <u>Year ended December 31, 2024</u> |  |  |  |  |  |
| Revenues |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;From external customers | $139982 | $75338 | $9919 | $4729 | $229968 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intersegment revenues | 2765 | 884 | 1107 | 376 | 5132 |
| Segment revenues | $142747 | $76222 | $11026 | $5105 | 235100 |
| Intersegment elimination |  |  |  |  | (5132) |
| Consolidated revenues |  |  |  |  | $229968 |
| Segment income before income tax | $29771 | $12881 | $2383 | $2806 | $47841 |
| <u>Year ended December 31, 2025</u> |  |  |  |  |  |
| Revenues |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;From external customers | $143365 | $77236 | $9517 | $5996 | $236114 |
| &nbsp;&nbsp;&nbsp;&nbsp;Intersegment revenues | 2941 | 1030 | 955 | 380 | 5306 |
| Segment revenues | $146306 | $78266 | $10472 | $6376 | 241420 |
| Intersegment elimination |  |  |  |  | (5306) |
| Consolidated revenues |  |  |  |  | $236114 |
| Segment income before income tax | $31312 | $12503 | $2219 | $4233 | $50267 |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Other segment information

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

<u>For the year ended December 31, 2023</u>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Consumer<br>Business** | **Enterprise<br>Business** | **International<br>Business** | **Others** | **Total** |
|  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Share of profits (loss) of associates and<br> joint ventures accounted for using<br> equity method | $(129) | $29 | $283 | $70 | $253 |
| Interest income | $25 | $58 | $36 | $499 | $618 |
| Interest expenses | $185 | $94 | $8 | $32 | $319 |
| Depreciation and amortization | $28699 | $9721 | $1354 | $737 | $40511 |
| Impairment loss on investment properties | $— | $— | $— | $336 | $336 |
| Impairment loss on property, plant and <br> equipment | $249 | $50 | $— | $— | $299 |

---

<u>For the year ended December 31, 2024</u>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Consumer<br>Business** | **Enterprise<br>Business** | **International<br>Business** | **Others** | **Total** |
|  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Share of profits (loss) of associates and<br> joint ventures accounted for using<br> equity method | $(303) | $55 | $277 | $128 | $157 |
| Interest income | $29 | $56 | $58 | $638 | $781 |
| Interest expenses | $199 | $98 | $8 | $34 | $339 |
| Depreciation and amortization | $28421 | $9943 | $1422 | $739 | $40525 |
| Reversal of impairment loss on<br> investment properties | $— | $— | $— | $139 | $139 |

---

<u>For the year ended December 31, 2025</u>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Consumer<br>Business** | **Enterprise<br>Business** | **International<br>Business** | **Others** | **Total** |
|  | **NT$** | **NT$** | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Share of profits (loss) of associates and<br> joint ventures accounted for using<br> equity method | $(379) | $50 | $295 | $99 | $65 |
| Interest income | $26 | $60 | $53 | $765 | $904 |
| Interest expenses | $220 | $107 | $8 | $35 | $370 |
| Depreciation and amortization | $28581 | $10393 | $1465 | $722 | $41161 |
| Impairment loss on property, plant and equipment | $90 | $22 | $— | $— | $112 |
| Reversal of impairment loss on investment <br> properties | $— | $— | $— | $28 | $28 |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Main products and service revenues

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Consumer Business |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Mobile services | $55138 | $57067 | $58919 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed-line services | 42574 | 42872 | 43078 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales | 36816 | 37231 | 38503 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 2565 | 2812 | 2865 |
|  | 137093 | 139982 | 143365 |
| Enterprise Business |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed-line services | 33967 | 33757 | 33589 |
| &nbsp;&nbsp;&nbsp;&nbsp;ICT business | 24697 | 27792 | 30360 |
| &nbsp;&nbsp;&nbsp;&nbsp;Mobile services | 9119 | 9152 | 9530 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 5222 | 4637 | 3757 |
|  | 73005 | 75338 | 77236 |
| International Business |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Fixed-line services | 5389 | 5087 | 4782 |
| &nbsp;&nbsp;&nbsp;&nbsp;ICT business | 2841 | 4016 | 4106 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 958 | 816 | 629 |
|  | 9188 | 9919 | 9517 |
| Others |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales | 3034 | 3803 | 5066 |
| &nbsp;&nbsp;&nbsp;&nbsp;Others | 879 | 926 | 930 |
|  | 3913 | 4729 | 5996 |
|  | $223199 | $229968 | $236114 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.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** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2023** | **2024** | **2025** |
|  | **NT$** | **NT$** | **NT$** |
|  | **(In Millions)** | **(In Millions)** | **(In Millions)** |
| Taiwan, ROC | $215265 | $220398 | $226132 |
| Overseas | 7934 | 9570 | 9982 |
|  | $223199 | $229968 | $236114 |

---

The Company has long-lived assets in U.S., Singapore, Hong Kong, China, Vietnam, Japan, Thailand , Germany and Malaysia for $2,948 million and $2,578 million as of December 31, 2024 and 2025, respectively, in the aforementioned areas, the other long-lived assets are located in Taiwan, ROC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.Major customers

As the years ended December 31, 2023, 2024 and 2025, the Company did not have any single customer whose revenue exceeded 10% of the total revenues.

------

## Exhibit 1.1

**Exhibit 1.1**

**Articles of Incorporation of Chunghwa Telecom Co., Ltd.**

1. All of 26 articles adopted by Promoters Meeting on June 11, 1996.

2. Article 15 amended by the Annual General Meeting on December 26, 1997.

3. Articles 2 and 22 amended by the Annual General Meeting on November 25, 1998.

4. Paragraph 1 of Article 21 amended by the Extraordinary General Meeting on July 13, 1999.

5. Articles 2, 3, 6, 7, 10, 12, 13, 19, 21, and 22 amended, and Articles 6-1 and 7-1 added by the Annual General Meeting on June 4, 2001.

6. Articles 2, 7, 8, 9, 10, 19, 21, and 22 amended and Article 5 deleted by the Annual General Meeting on June 21, 2002.

7. Article 2 amended by the Annual General Meeting on June 17, 2003.

8. Articles 2 and 22 amended by the Annual General Meeting on June 25, 2004.

9. Articles 2, 3, 6, 10, 11, 12, 14, 17, 19, 20, 22, 23, and 25 amended, and Articles 12-1, 18-1, and 18-2 added by the Annual General Meeting on May 30, 2006.

10. Articles 2, 12-1, 14, 22, and 23 amended, and Article 18-1 deleted by the Annual General Meeting on June 15, 2007.

11. Articles 2, 6, and 14 amended by the Annual General Meeting on June 19, 2008.

12. Articles 2, 6,12 and 13 amended, and Article 6-1 deleted by the Annual General Meeting on June 19, 2009.

13. Article 2 amended by the Annual General Meeting on June 18, 2010.

14. The title of Chapter IV and Articles 12, 12-1, 14, 19, 20, and 22 amended by the Annual General Meeting on June 22, 2012.

15. The title of Chapter IV, Articles 2, 12, 13, 18-2, 21 and 22 amended; Articles 17 and 18 deleted, and Article 13-1 added by the Annual General Meeting on June 25, 2013.

16. Articles 2 and 15 amended by the Annual General Meeting on June 24, 2014.

17. Articles 1, 2 and 7-1 amended by the Annual General Meeting on June 26, 2015.

18. Articles 2 and 22 amended, and Article 22-1 added by the Annual General Meeting on June 24, 2016.

19. Article 2 amended by the Annual General Meeting on June 15, 2018.

20. Article 2 amended by the Annual General Meeting on June 21, 2019.

21. Article 2 amended by the Annual General Meeting on May 29, 2020.

22. Article 1, 2, 14, 19 and 20 amended by the Annual General Meeting on August 20, 2021.

23. Article 8 amended by the Annual General Meeting on May 27, 2022.

24. Article 2 amended by the Annual General Meeting on May 26, 2023.

25. Articles 2 and 22 amended by the Annual General Meeting on May 31, 2024.

26. Articles 2 and 22 amended by the Annual General Meeting on May 29, 2025.

**Chapter I - General Provisions**

Article 1 - The Company is promoted by the Ministry of Transportation and Communications ("MOTC") and others and organized under the Telecommunication Law and the provisions of the Company Law pertaining to companies limited by shares and is named "Chunghwa Telecom Co., Ltd.".

The English name of the Company is "Chunghwa Telecom Co., Ltd.".

In response to the implementation of Telecommunications Management Act, the Company has completed the telecommunication business conversion registration on September 30, 2020, and the telecommunication business is changed to be governed under the Telecommunications Management Act.

Article 2 - The scope of business of the Company shall be as follows:

1)Telecommunications Enterprises (G903010);

2)Installation of the Computer Equipment Business (E605010);

3)Telecommunication Equipment Wholesale Business (F113070);

4)Telecommunication Equipment Retail Business (F213060);

5)Telecommunication Engineering Business (E701010);

6)Installation of the Radio-Frequency Equipment whose operation is controlled by the Telecommunication Business (E701030);

7)Information Software Service Business (I301010);

8)Rental Business (JE01010);

9)Other Wholesale Businesses (F199990);

10)Management and Consulting Service Business (I103060);

11)Other Corporation Service Businesses (IZ99990);

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12)Other Retail Businesses (F299990);

13)Online Certification Service Businesses (IZ13010);

14)Supply of Electronic Information Service Businesses (I301030);

15)Information Process Service Business (I301020);

16)Telecommunication Account Application Agency Businesses (IE01010);

17)Residential and Commercial Building Development, Rental and Sales Businesses (H701010);

18)Development of Special District/Zone Businesses (H701040);

19)Real Estate Rental Businesses (H703100);

20)Community Common Cable Television Equipment Businesses (J502020);

21)Exhibition Service Businesses (JB01010);

22)Parking Lot Operation Businesses (G202010);

23)Environmental Assessment Service Businesses (J101050);

24)Computer and Accessories Manufacturing Service (CC01110);

25)Information Storage and Process Equipment Manufacturing Businesses (CC01120);

26)Other Electrical and Electronic Machinery & Equipment Manufacturing Businesses (CC01990);

27)General Hotel Business (J901020);

28)Computer and Administrative Device Wholesale Businesses (F113050);

29)Information Software Wholesale Businesses (F118010);

30)Computer and Administrative Device Retail Businesses (F213030);

31)Information Software Retail Businesses (F218010);

32)Energy Service Business (IG03010);

33)Engineering Consulting Business (I101061);

34)Refrigeration and Air-Conditioning Consulting Business (E602011);

35)Automatic Control Equipment Engineering Business (E603050);

36)Lighting Equipment Installation Business (E603090);

37)Non-store Retailer Business (F399040);

38)Power Equipment Installation and Maintenance Business (E601010) ;

39)Electrical Appliance Installation Business (E601020) ;

40)Instrument Installation Engineering Business (EZ05010) ;

41)Television Program Production Business (J503020) ;

42)Broadcasting and Television Program Launch Business (J503030) ;

43)Broadcasting and Television Advertising Business (J503040) ;

44)Production, Licensed Recording and Supply of Videotape Program Business (J503050) ;

45)Water Pipe Construction Business (E501011);

46)Machinery and Equipment Manufacturing Business (CB01010);

47)Traffic Signals Installation and Construction Business (E603080);

48)Traffic Labels Construction Business (EZ06010);

49)Medical Device Wholesale Business (F108031);

50)Medical Device Retail Business (F208031);

51)Metrological Instruments Importing Business (F401181);

52)Metrological Instruments Repairing Business (JA02051);

53)Metrological Instruments Manufacturing Business (CE01021);

54)Commercial Port Area Ship-repair (CD01070)

55)Wholesale of Aircraft and Component Parts Thereof (F114070);

56)Retail Sale of Aircraft and Component Parts Thereof (F214070);

57)Except the permitted business, the Company may engage in other businesses not prohibited or restricted by laws and regulations (ZZ99999).

The Company may handle endorsement and guaranty affairs in accordance with the Operation Procedures for the Endorsement and Guaranty of the Company if there is any business needs.

Article 3 - In the event that the Company invests in another business as a limited-liability shareholder, the total investment amount may not exceed the total paid-in capital of the Company. Investment not related to telecommunications may not exceed 20% of the total paid-in capital of the Company.

Article 4 - The head office of the Company is located in Taipei City and the Company may establish branch office(s) and liaison office(s) at appropriate locations within or outside the territory of the Republic of China.

Article 5 - (Deleted)

------

**Chapter II - Shares**

Article 6 - The registered capital of the Company shall be One Hundred Twenty Billion New Taiwan Dollars (NT$120,000,000,000), divided into Twelve Billion (12,000,000,000) common shares with a par value of Ten New Taiwan Dollars (NT$10) per share. All the shares shall be issued in increments.

Two Hundred Million shares shall be set aside from the aforementioned common shares for the use as Stock Warrants, Preferred Shares with Warrants, and Bonds with Warrants.

For issuance of Stock Warrants where the price is less than the closing price of the Company shares on the date of issuance, or where the price of the treasury stocks to be transferred to the employees is less than the average price of the repurchased shares, shareholders representing the majority of the issued shares shall be present and approval by at least 2/3 of the presenting shareholders shall be required.

Article 6-1 - (Deleted)

Article 7 - The share certificates of the Company shall bear the shareholders' names, be signed or sealed by the Chairman and at least two other directors, be serially numbered, affixed with the corporate seal of the Company, and legalized by the Ministry of Economic Affairs ("MOEA") (hereinafter referred to as the "Competent Authority") or its certified issuance registration agency before they are issued in accordance with the relevant laws.

When issuing new shares, the Company may print a share certificate in respect of the full number of shares to be issued at that time, and shall arrange for the certificate to be kept by a centralized securities custodian institution, in which case the preceding requirement for serial numbering of share certificates shall not apply.

Shares issued by the Company may also be exempt from printing of share certificates, and the Company shall arrange for such shares to be recorded by a centralized securities custodian institution, in which case the preceding 2 paragraphs shall not apply.

Any affair with regard to the shares of the Company shall be handled in accordance with the Guidelines for Handling Stock Affairs by a Public Issuing Company.

Article 7-1 - The stocks issued by the Company, upon the request of the centralized securities custodian institution, may be merged in exchange for the security with large par value.

**Chapter III - Shareholders' Meeting** 

Article 8 - Shareholders' meetings shall be of two types: annual general meeting and extraordinary general meeting. Except as otherwise provided in the Company Law, shareholders' meetings shall be convened by the Board of Directors.

The annual general meeting shall be convened at least once every year and shall be convened within six (6) months after the close of each fiscal year except as otherwise approved by the Competent Authority for good cause shown.

The extraordinary general meeting shall be convened at such time as may be deemed necessary pursuant to relevant laws and regulations.

The shareholders' meetings may be held by means of visual communication network or other methods promulgated by the central competent authority.

Article 9 - Where a shareholders' meeting is convened by the Board of Directors, the chairman of the Company shall act as the chairman of the shareholders' meeting. In the event that the chairman is to be on leave of absence or cannot attend the meeting for any cause whatsoever, the vice-chairman, or where the chairman and the vice-chairman are both to be on leave of absence or cannot attend the meeting for any cause whatsoever, one of the directors appointed by the chairman, or, where there is no appointment, a director elected among all the directors, may act on behalf of the chairman.

------

Where a shareholders' meeting is convened by a person with authority other than the Board of Directors, such convener shall act as the chairman of the shareholders' meeting. Where there are two (2) or more conveners, the chairman of the meeting shall be elected amongst such conveners.

Article 10 - Unless otherwise specified by the law, each shareholder of the Company shall be entitled to one vote for each share held.

Article 11 - (Deleted)

**Chapter IV – Directors and Audit Committee** 

Article 12 - The Company shall have seven (7) to fifteen (15) directors to form the Board of Directors, one-fifth (1/5) of whom shall be expert representatives.

The Board of Directors shall have one (1) chairman elected by and from among the directors with the concurrence of a general majority of the directors present at a meeting attended by at least two-thirds (2/3) of the directors and shall have one (1) vice-chairman elected in the same way.

The Board of Directors may establish various functional committees according to the laws and regulations or business needs.

The Company shall establish an audit committee starting from the 7<sup>th</sup> Board of Directors. The provisions related to supervisors under the Company Act, Securities and Exchange Act and other laws shall apply mutatis mutandis to the audit committee.

Article 12-1 In accordance with Articles 181-2 and 183 of the Securities and Exchange Act, the Company shall, beginning in the fifth commencement, establish at least three (3) independent directors to be included in the number of directors designated in the preceding Article.

The elections for directors of the Company shall proceed with the candidate nomination system; the shareholders shall elect the directors from among the nominees listed in the roster of candidates.

Elections for independent and non-independent directors shall proceed concurrently, and the number of elected directors shall be calculated separately.

The professional qualifications, restrictions on shareholding and concurrent post, affirmation of independence, nomination and election processes, exercise of authority and other requirements of independent directors shall be determined and executed in accordance with the Securities and Exchange Law and related regulations.

Article 13- The tenure of office of the directors will be three (3) years and they will be eligible for re-election.

In the event that the representative of a government or corporate body is elected as the director, the government or corporate body may reappoint such representative at anytime to supplement the original tenure.

Article 13-1- The remuneration and compensation of the directors shall be determined by the Board of Directors based on the participation and the contribution of each director in the business operation of the Company and referencing the regular standards of other corporations in the similar industry.

Article 14 - The following items shall be decided by the Board of Directors:

1)Increase or reduction of capital of the Company.

2)Regulations with regard to the organization of the Company.

3)Establishment, amendment, and abolishment of the branch offices within or outside the territory of the Republic of China.

4)Examination of annual business budgets and final closing report.

5)Distribution of earnings or off-set of deficit.

6)The amount and term of domestic and foreign loan.

7)The amount of Investment.

8)Issuance of corporate bonds.

9)Policies regarding personnel matters, material purchase, accounting, and internal control.

------

10)Amendment and modifications of regulations of organization of the Board of Directors and the functional committee.

11)Amendment and modification of regulations with regard to the scope of duties of independent directors.

12)Appointment and removal of the president, executive vice presidents, presidents of branch offices, president of Telecommunication Laboratories, and president of Telecommunication Training Institute.

13)Appointment and removal of the chiefs of finance, accounting and internal audit.

14)Policies regarding recommendation of chairman and president to subsidiaries.

15)Other duties and powers granted by the law or by shareholders' meeting.

Article 15 - The Board of Directors' meeting shall be convened at least one time a quarter. The special Board of Directors' meeting shall be convened at such time as may be deemed necessary. Both meetings shall be convened by the chairman of the Company and such chairman shall act as the chairman of the meeting. In the event that the chairman cannot attend the meeting for any cause whatsoever, the vice-chairman, or where the chairman and the vice-chairman are both to be on leave of absence or cannot attend the meeting for any cause whatsoever, one of the directors appointed by the chairman, or, where there is no appointment, a director elected among all the directors, may act on behalf of the chairman.

Article 16 - All directors shall attend every Board of Directors' meeting; in case any of the directors cannot attend the meeting for any cause whatsoever, he/she may designate the other directors to act on his/her behalf and such agent shall present the proxy setting forth the vested power of the purpose of the meeting each time. However, each agent shall only accept one appointment from the directors.

Except as otherwise provided in the relevant laws or this Articles of Incorporation, any resolution of a Board of Directors' meeting shall be adopted at a meeting which at least general majority of the directors attend and at which meeting a general majority of the directors present vote in favor of such resolution.

Minutes of meetings shall be prepared for all resolutions adopted at a Board of Directors' meeting.

Article 17 - (deleted).

Article 18 - (deleted).

Article 18-1 (deleted).

Article 18-2 The Company may purchase liability insurance policies for directors during the term of their offices and within the scope of damages results from the performances of their official duties in order to reduce and disperse the risks for the Company and shareholders due to the fault, mistake, violation of duty, and inaccurate or misleading statements on part of the directors during the performance of their duties.

**Chapter V - Managerial Officers** 

Article 19 - The Company shall have one (1) chief executive officer, to be served as a concurrent post by the chairman or by the president, to lead the managers in proposing and making significant policy decisions regarding to the Company and all affiliates of the Company.

The Company shall have one (1) president, several executive vice presidents and presidents of branch offices, and one (1) president for each of Telecommunication Laboratories and Telecommunication Training Institute.

The president shall be a director with professional knowledge in business of telecommunication or technology.

------

Article 20 - The president shall, in accordance with the decision made by the Board of Directors and with instruction from the chief executive officer, take charge of the affairs of the Company, and shall have the authority to sign on behalf of the Company; the executive vice presidents, presidents of branch offices, president of Telecommunication Laboratories, and president of Telecommunication Training Institute shall assist the president in all affairs, and shall have the power to sign on behalf of the Company within the scope set by rules decided by the president or authorized in writing by the president.

The division of powers and duties between the Board of Directors and the managers shall be determined in accordance with the Powers and Duties Chart.

**Chapter VI - Accounting**

Article 21 - The fiscal year of the Company shall be from January 1 to December 31 of each year.

At the end of each fiscal year, the Board of Directors shall prepare the following statements and reports, and shall submit the same to the annual general meeting for adoption according to the relevant legal procedures.

1)Report of Operations;

2)Financial statements;

3)Resolution governing the distribution of earnings or the making-up of losses.

Article 22 - In annual profit-making year, the Company should distribute 2% - 5% of profit as employees' compensation, distribute no less than 20% of the employees' compensation as grassroots employees' compensation; and not more than 0.17% of profit should be distributed as Directors' compensation, however, that if the Company has any accumulated losses, an amount to offset should be reserved in advance.

The Company should by a resolution adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors, have the profit distributable as employees' compensation in the preceding paragraph distributed in the form of share or in cash; and report at the General Meeting of shareholders.

The provisions in the two preceding Paragraphs have retrospective effect and should apply to the determination of compensation to employees and Directors for the fiscal year of 2024. However, the provision of grassroots employees' compensation in Paragraph 1 shall take effect from the fiscal year of 2025.

Article 22-1- After the Company has paid all taxes due at the end of each fiscal year, the Company shall make up its accumulated losses and set aside ten percent (10 %) earning as a statutory revenue reserve before distribution of earnings, except when the accumulated amount of such legal reserve equals to the Company's total authorized capital. The Company may also set aside or reverse special reserve(s) according to the business needs or laws and regulations. A minimum of fifty percent (50%) of the total amount of the remaining amount, along with the accumulated retained earnings from the previous year, shall be distributed to shareholders. Cash dividends shall not be less than fifty percent (50%) of the total dividends, but when the cash dividends fall below NT$0.1 per share, dividends may be distributed in the form of shares.

The percentage of distribution stipulated in the preceding paragraph shall take actual profitability of the year, capital budgeting, and status of finance into consideration, and shall be executed following a resolution of shareholders' meeting.

Dividends and bonuses shall not be distributed where the Company has no earning.

Where the Company has no loss, it may distribute the capital reserve derived from the income of issuance of new shares at a premium, in whole or in part, by issuing new shares or by cash to shareholders in proportion to the number of their existing shares being held by each of them.

Article 23 - In the event that the Company issues new shares, excluding ad hoc ratification by the central competent authority, the Company shall reserve ten percent (10%) to fifteen percent (15%) of the total newly issued shares for preemptive subscription by employees of the Company.

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**Chapter VII - Supplementary Provisions**

Article 24 - The regulations with regard to the organization of the Board of Directors and the Company shall be separately adopted.

Article 25 - Matters not specified herein shall be resolved in accordance with the Company Law.

Article 26 - This Articles of Incorporation was adopted on June 11, 1996.

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## Exhibit 2.2

**Exhibit 2.2**

**DESCRIPTION OF THE REGISTRANT'S SECURITIES REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934**

As of December 31, 2025, Chunghwa Telecom Co., Ltd. (the "company", "we", "us" and "our") had the following series of securities registered pursuant to Section 12(b) of the Exchange Act:

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| | | |
|:---|:---|:---|
| **<u>Title of each class</u>** | **<u>Trade symbol</u>** | **<u>Name of each exchange on which registered</u>** |
| American depositary shares, each representing ten common shares | CHT | New York Stock Exchange |
| Common shares, par value NT$10 per share\* | N/A | New York Stock Exchange |

---

\* Not for trading, but only in connection with the listing on the New York Stock Exchange of American depositary shares.

American Depositary Shares ("ADSs"), each representing ten Chunghwa Telecom Co., Ltd. common shares ("CHT Shares") are listed on the New York Stock Exchange and are registered under Section 12(b) of the Exchange Act. The following contains a description of the rights of (i) the holders of common shares and (ii) ADS holders. Shares underlying the ADSs are held by JPMorgan Chase Bank, N.A., as depositary.

**Description of Ordinary Shares** 

The following is a summary of the rights of common shares of Chunghwa Telecom Co., Ltd. as specified in Chunghwa Telecom Co., Ltd.'s Articles of Incorporation (the "CHT Articles"), which were last amended by Annual General Meeting on May 29, 2025. You are encouraged to read the CHT Articles, which are attached as an exhibit to the 2025 Form 20-F.

***Type and Class of Securities*** 

Each common share has a par value of NT$10 per share. The number of common Shares that have been issued as of December 31, 2025 is provided on the cover of the 2025 Form 20-F. Common shares may be held in either certified or uncertified form. All of the outstanding CHT Shares are currently issued and transferred in book-entry form instead of issuing physical share certificates. See also "Item 19. Exhibits—Articles of Incorporation of Chunghwa Telecom Co., Ltd. (English translation), as last amended by Annual General Meeting on May 29, 2025" in the 2025 Form 20-F.

***Preemptive Rights*** 

Under the ROC Company Act and CHT Articles, when we issue new shares for cash, unless otherwise approved by the central competent authority, our employees have rights to subscribe for between 10% and 15% of the new issue. Except for the shares reserved in accordance with the ROC Company Act, we are required to inform its existing shareholders of their rights to subscribe for additional shares pro rata to their respective shareholding and to note that the shareholders will lose their pre-emptive right if they fail to subscribe for the new shares within the prescribed period. In the event that there is any new share that has not been subscribed by the existing shareholders or our employees pursuant to their respective pre-emptive rights, we may offer such shares to other investors through public offering or private negotiation with any person designated by us.

In addition, in accordance with the ROC Securities and Exchange Act, a public company that intends to offer new shares for cash must offer to the public at least 10% of the shares to be sold except in certain limited circumstances. This percentage can be increased by a resolution passed at a stockholders' meeting, held in accordance with the ROC Company Act and CHT Articles which would diminish the number of new shares subject to the preemptive rights of existing stockholders.

------

***Limitations or Qualifications*** 

Not applicable.

***Other Rights*** 

Not applicable.

***Rights of the Common Shares*** 

See "Item 19. Exhibits—Articles of Incorporation of Chunghwa Telecom Co., Ltd. (English translation), as last amended by Annual General Meeting on May 29, 2025" in the 2025 Form 20-F.

***Requirements for Amendments*** 

Not applicable.

***Limitations on the Rights to Own Shares*** 

See "Item 10. Additional Information—D. Exchange Controls" in the 2025 Form 20-F.

***Provisions Affecting Any Change of Control*** 

Not applicable.

***Ownership Threshold*** 

Not applicable.

***Differences Between the Law of Different Jurisdictions*** 

Not applicable.

***Changes in Capital*** 

Not applicable.

***Debt Securities***

Not applicable.

***Warrants and Rights*** 

Not applicable.

***Other Securities*** 

Not applicable.

**Description of American Depositary Shares** 

ADSs are evidenced by certificates that are commonly known as American depositary receipts, or ADRs. The MOTC sold our common shares in the form of ADSs evidenced by ADRs. Our previous depositary, The Bank of New York, executed and delivered the ADRs. Each ADS represents ten common shares (or the right to receive ten common shares) which the MOTC deposited with previous custodian, Mega International Commercial Bank. Each ADS also represents securities, cash or other property deposited with

------

the depositary but not distributed to ADS holders. Since November 2007, our depositary and custodian have changed to JPMorgan Chase Bank, N.A. On December 27, 2023, we and JPMorgan Chase Bank, N.A. further amended the deposit agreement. On September 16, 2024, our custodian changed to Standard Chartered Bank (Taiwan) Limited. The current depositary's Depositary Office is located at 383 Madison Avenue, Floor 11, New York, NY 10179. The current custodian's office is located at 1F., No. 177, Liaoning St., Zhongshan Dist., Taipei 104, Taiwan (R.O.C.).

*You may hold ADSs either directly or indirectly through your broker or other financial institution. If you hold ADSs directly, you are an ADS holder. This description assumes you hold your ADSs directly. If you hold the ADRs indirectly, you must rely on the procedures of your broker or other financial institution to assert the rights of ADS holders described in this section. You should consult with your broker or financial institution to find out what those procedures are.* 

Because the depositary will actually hold the common shares, you must rely on it to exercise the rights of a shareholder. The obligations of the depositary are set out in a deposit agreement among us, the depositary and you, as an ADS holder.

The deposit agreement and the ADSs are generally governed by New York law. However, our obligations to our shareholders will continue to be governed by the laws of the ROC, which are different from the laws of the United States. In addition, we note that laws and regulations of the ROC may restrict the deposit and withdrawal of our common shares in or from the ADS facility.

The following is a summary of the deposit agreement. Because it is a summary, it does not contain all the information that may be important to you.

**Dividends and Other Distributions** 

***How will you receive dividends and other distributions on the shares?*** 

The depositary has agreed to pay to you the cash dividends or other distributions it or the custodian receives on common shares or other deposited securities, after deducting taxes, fees and expenses. You will receive these distributions in proportion to the number of common shares your ADSs represent.

*Cash*. The depositary will convert any cash dividend or other cash distribution we pay on the common shares into U.S. dollars, if it can do so on a reasonable basis and can transfer the U.S. dollars to the United States. If that is not possible or if any approval from the government is needed and cannot be obtained, the agreement allows the depositary to distribute the NT dollars only to those ADS holders to whom it is possible to do so or, in its discretion, it will hold the NT dollars for and on your behalf if it cannot convert for the account of the ADS holders who have not been paid. It will not invest the NT dollars and it will not be liable for any interest.

Before making a distribution the depositary will deduct any withholding taxes that must be paid under ROC law. See "Item 10. Additional Information—E. Taxation—ROC Taxation—Dividends" in the 2025 Form 20-F. The depositary will distribute only whole U.S. dollars and cents and will round fractional cents to the nearest whole cent. If the exchange rates fluctuate during a time when the depositary cannot convert the NT dollars, you may lose some or all of the value of the distribution.

*Common shares*. The depositary may distribute new ADSs representing any common shares we distribute as a dividend or free distribution, if we furnish it promptly with satisfactory evidence that it is legal to do so. The depositary will only distribute whole ADSs. It will sell common shares which would require it to issue a fractional ADS and distribute the net proceeds in the same way as it does with cash. If the depositary does not distribute additional ADSs, subject to applicable laws and regulations, each ADS will also represent the new common shares.

*Rights to receive additional common shares*. If we offer holders of our securities any rights to subscribe for additional common shares or any other rights, the depositary may make these rights available to you. We

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must first instruct the depositary to do so and furnish it with satisfactory evidence that it is legal to do so. If we do not furnish this evidence and/or give these instructions, and the depositary decides it is practical to sell, the depositary will sell the rights that are not exercised or distributed. The proceeds of the sale will be distributed to holders as a cash distribution. The depositary may allow rights that are not distributed or sold to lapse. In that case, you will receive no value for them.

If the depositary makes rights available to you, it will exercise the rights and purchase the common shares on your behalf. The depositary will then deposit the common shares and issue ADSs to you. It will only exercise rights if you pay it the exercise price and any other charges the rights require you to pay.

U.S. securities laws may restrict the sale, deposit, cancellation and transfer of the ADSs issued after exercise of rights. For example, you may not be able to trade the ADSs freely in the United States. In this case, the depositary may issue the ADSs under a separate restricted deposit agreement which will contain the same provisions as the agreement, except for changes needed to put the restrictions in place.

*Other Distributions*. The depositary will send to you anything else we distribute on deposited securities by any means it thinks is legal, fair and practical. If it cannot make the distribution in that way, the depositary has a choice. It may decide to sell what we distributed and distribute the net proceeds, in the same way as it does with cash. Or, it may decide to hold what we distributed for and on your behalf, in which case ADSs will also represent the newly distributed property.

The depositary is not responsible if it decides that it is unlawful or impractical to make a distribution available to any ADS holders. We have no obligation to register ADSs, common shares, rights or other securities under the Securities Act. We also have no obligation to take any other action to permit the distribution of ADSs, common shares, rights or anything else to ADS holders. This means that you may not receive the distributions we make on our common shares or any value for them if it is illegal or impractical for us to make them available to you.

**Deposit, Withdrawal and Cancellation** 

***How does the depositary issue ADSs?*** 

Subject to the procedures required by ROC law described below, the depositary will issue ADSs if you or your broker deposit common shares or evidence of rights to receive common shares with the custodian. Upon payment of its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, the depositary will register the appropriate number of ADSs in the names you request and will deliver the ADSs at its office to the persons you request.

***How do ADR holders cancel an ADS and obtain common shares?*** 

In order to withdraw our common shares represented by your ADSs, you will be required to pay to the depositary the fees for cancellation of ADSs and any charges and taxes, including stamp taxes or stock transfer taxes or fees, payable upon the transfer of our common shares. You assume the risk for delivery of all funds and securities upon withdrawal. Once canceled, the ADSs will not have any rights under the deposit agreement.

Upon surrender of ADSs and upon payment of the fees and expenses of the depositary and any taxes or other governmental charges, you may generally request the depositary to sell the common shares underlying your ADSs on your behalf. The depositary may require you to enter into a separate agreement to

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arrange the sale. These sales will be conducted through a securities company in the ROC on the Taiwan Stock Exchange. You assume the risk and expense of any sale.

You will have the right to withdraw the common shares represented by your ADSs except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•for temporary delays that may arise because (1) the transfer books for our common shares or ADSs are closed or (2) our common shares are temporarily transfer restricted due to shareholders' meeting or a payment of dividends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•when you or other ADS holders seeking to withdraw shares owe money to pay fees, taxes and similar charges; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•for restrictions imposed by any U.S. or foreign law or governmental regulations relating to ADSs or the withdrawal of the common shares represented by your ADSs.

The deposit agreement may not be amended to impair your right to withdraw our common shares represented by your ADSs, except in order to comply with mandatory provisions of applicable law.

If you wish to withdraw common shares from the ADS facility, you will be required to register with Taiwan Stock Exchange as a foreign investor and you will be required to appoint a local agent in the ROC and to open a securities trading account with a local brokerage firm and a bank account to remit funds, exercise stockholders' rights and perform other function as holder of ADSs may designate. Without obtaining the governmental approval, appointing the agents and opening a securities trading account and bank account, you would not be able to hold or to subsequently sell or otherwise transfer our common shares on the Taiwan Stock Exchange. In addition, you are required to appoint a local bank to act as custodian and for handling confirmation and settlement of trades, safekeeping of securities or cash proceeds and declaration of information. You also would be required to appoint a tax guarantor who will act as guarantor for your tax payment obligations.

**Taiwan Disclosure Obligations** 

*We may have various disclosure and reporting obligations to the ROC government upon the withdrawal of ADSs if:* 

(a) the person to be registered as our shareholder is our "related party" under laws and regulations of the ROC and beneficially owns common shares withdrawn from the ADS facility; or

(b) the person to be registered as the holder of the underlying common shares withdrawn against the surrender of the ADSs will then own a number of common shares withdrawn from the ADS facility exceeding 10% of the common shares represented by ADSs.

*Because of these obligations, we may ask the depositary to ask you to disclose certain information to us in accordance with the deposit agreement, including the name of the beneficial owner of the ADSs delivered for cancellation, and ask you to provide proof of identity and genuineness of any signature and other documents before it will cancel your ADSs. The withdrawal of shares represented by your ADSs may be delayed until the depositary receives the information and proof so requested and satisfactory evidence of your compliance with all laws and regulations. The information you are required to provide may include the name and nationality of the beneficial owner and the number of shares the beneficial owner is withdrawing or has withdrawn in the past.* 

**Voting Rights** 

*You may direct the exercise of voting rights with respect to the common shares represented by ADSs only in accordance with the provisions of the deposit agreement as described below and applicable ROC law. See "Item 3. Key Information—D. Risk Factors—Risks Relating to Ownership of Our ADSs and Common Shares—You will be more restricted in your ability to exercise voting rights than the holders of our common shares, which may diminish your influence over our corporate affairs and may reduce the value of* 

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*your ADSs" in the 2025 Form 20-F. You will not have the same voting rights as the holders of our common shares, which may affect the value of your ADSs. If you wish to withdraw the common shares, you must register with the Taiwan Stock Exchange as a foreign investor, appoint a local agent and open a securities trading account with a local brokerage firm and a bank account as discussed above. Even if you do all this, however, you might not have enough time to register your common shares for voting purposes before the shareholder register is closed. See "Item 10. Additional Information—Meetings of Stockholders" and "—Register of Stockholders and Record Dates" in the 2025 Form 20-F.*

Except as described below, you will not be able to exercise voting rights attaching to the common shares represented by the ADSs on an individual basis. Under the deposit agreement, a shareholder's voting rights attaching to shareholdings in a ROC company must, as to all matters subject to a vote of shareholders (other than the election of directors and supervisors), be exercised as to all shares held by the shareholder in the same manner. Accordingly, the voting rights attaching to the common shares represented by ADSs must be exercised as to all matters subject to a vote of shareholders by the depositary or its nominee, who represents all holders of ADSs, collectively in the same manner, except in the case of an election of directors and supervisors. Directors and supervisors are elected by cumulative voting.

In the deposit agreement, you will appoint the depositary as your representative to exercise the voting rights with respect to the common shares represented by your ADSs.

We will provide the depositary with copies (including English translations) of notices of meetings of our shareholders and the agenda of these meetings. These materials will contain an indication of the number of directors or supervisors to be elected if an election of directors or supervisors is to be held at the meeting. The depositary will also mail to holders a voting instruction form. In order to be valid, the holder of ADSs must complete, sign and return to the depositary the voting instruction form by a date specified by the depositary. The number of directors or supervisors to be elected may change after the depositary has mailed the voting instruction form to you. If a change were to occur, the depositary would be unable to follow your exact voting instructions and may calculate your votes according to procedures not inconsistent with the provisions of the deposit agreement.

We cannot assure you that you will receive the materials in time to ensure that you can instruct the depositary to vote the common shares represented by your ADSs. In addition, the depositary and its agents are not responsible for failing to carry out voting instructions or for the manner of carrying out voting instructions. *This means that you may not be able to exercise your right to vote and there may be nothing you can do if the common shares represented by your ADSs are not voted as you requested.*

Subject to the provisions described in the second succeeding paragraph, which will apply to the election of directors and supervisors, if persons together holding at least 51% of the ADSs outstanding at the relevant record date instruct the depositary to vote in the same manner in respect of one or more resolutions to be proposed at the meeting (other than the election of directors or supervisors), the depositary will notify our chairman or such person as he may designate of such instructions. The depositary will appoint the chairman or his designated person to serve as your designated representative and that of the depositary's or its nominee. The designated representative will attend the meeting and vote all the common shares represented by ADSs in the manner so instructed by you.

If, for any reason, the depositary has not by the date specified by it received instructions from persons together holding at least 51% of all the ADSs outstanding at the relevant record date to vote in the same manner in respect of any resolution specified in the agenda for a meeting (other than for the election of directors or supervisors), then you will be deemed to have instructed the depositary or its nominee to authorize and appoint the designated representative as your representative and that of the depositary's or its nominee to attend the meeting and vote all the common shares represented by all ADSs as the designated representative deems appropriate in his sole discretion with respect to the resolution or resolutions, which may not be in your interests. However, no authorization will be given with respect to any matter as to which the designated representative informs the depositary that he does not wish to be so authorized, in which event the depositary will not vote at the relevant meeting. The depositary will, however, take such

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action as is necessary to cause all the common shares represented by ADSs to be counted for the purpose of satisfying applicable quorum requirements.

The depositary will notify the designated representative of the instructions for the election of directors and supervisors received from you and appoint the designated representative as your representative and that of the depositary's or its nominee to attend any meeting and vote the common shares represented by ADSs as to which the depositary has received instructions from you for the election of directors and supervisors, subject to any restrictions imposed by the law of the ROC and our articles of incorporation. If, by the date specified by the depositary, you have not delivered instructions to the depositary, you will be deemed to have instructed the depositary to authorize and appoint the designated representative as your representative and that of the depositary's or its nominee to attend the meeting and vote, at his sole discretion, all the common shares represented by ADSs as to which the depositary has not received instructions from you for the election of directors and supervisors as the designated representative deems appropriate, which may not be in your best interests. However, no authorization will be given with respect to any election of directors or supervisors as to which the designated representative informs the depositary that he does not wish to be so authorized, in which event the depositary will attend such meeting and will vote those common shares represented by the ADSs as to which it has received instructions from you for the election of directors and supervisors in the manner so instructed. The depositary will not vote at the relevant meeting any common shares evidenced by ADSs if the depositary has not received instructions from you for the election of directors and supervisors. However, the depositary will take all necessary actions to cause all common shares evidenced by the ADSs to be counted for the purpose of satisfying quorum requirements.

By continuing to hold ADSs or any interest in the ADSs, you will be deemed to have agreed to the voting provisions set forth in the deposit agreement, as these provisions may be amended from time to time.

The depositary will not, and the depositary will endeavor to ensure that the custodian and their respective nominees (including the designated representative) do not (except as described above), exercise any discretion as to voting, nor vote or attempt to exercise the right to vote that attaches to deposited securities, other than in accordance with instructions received as herein provided.

Beneficial owners of ADSs are entitled to exercise their voting rights only through the procedures applicable to the representative holder of the ADSs in which they have a beneficial interest.

When exercising voting rights on a cumulative basis for the election of directors and supervisors, the aggregate votes to be cast for each candidate will be reduced by the applicable amount. You may vote the common shares that you have withdrawn and transferred on our register of shareholders. However, you may not receive sufficient advance notice of our shareholder meetings to enable you to withdraw your shares and vote at such meetings.

**Proposal Rights**

Holders that individually or together with other Holders hold at least 51% of the ADSs outstanding at the relevant record date are entitled to submit each year one written proposal, or the ADS holder proposal, for voting at the general meeting of shareholders of the Company in accordance with the manner specified in the deposit agreement.

Any ADS holder proposal received by the depositary which the depositary reasonably believes to be in full compliance with the preceding paragraph shall be submitted by the depositary to us prior to the expiration of the submission period announced by us. The depositary shall withdraw any ADS holder proposal so submitted as to which the depositary has not received within three (3) Business Days after the relevant record date a certificate from the submitting ADS holder required under the deposit agreement. In determining whether any ADS holder proposal meets the requirements set forth above, the depositary may rely upon a statement set forth in a certificate from the submitting ADS holder required under the deposit agreement stating that the ADS holder proposal is in full compliance with the requirements set forth in the preceding paragraph. The depositary has no obligation to perform any investigation in connection with any ADS holder proposal.

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Notwithstanding anything contained in the deposit agreement or any ADR, the depositary shall not be obligated to provide to the holders or beneficial owners of ADSs any notices relating to the proposal rights, including, without limitation, notice of the proposal submission period, or the receipt of any ADS holder proposal from holders or beneficial owners, or of the holdings of any ADSs by any persons, except that the depositary shall, upon a holder's written request, inform such holder of the total number of ADSs then issued and outstanding.

**Payment of Taxes** 

The depositary may deduct the amount of any taxes owed from any payment to you. It may also sell deposited securities, by public or private sale, subject to applicable laws and regulations, to pay any taxes owed. You will remain liable if the proceeds of the sale are not enough to pay the taxes. If the depositary sells deposited securities, it will, if appropriate, reduce the number of ADSs to reflect the sale and pay to you any proceeds, or send to you any property, remaining after it has paid the taxes.

**Reclassifications, Recapitalizations and Mergers** 

***If we:***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Change the nominal or par value of our common shares

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Reclassify, split up or consolidate any of the deposited securities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Distribute securities on the common shares that are not distributed to you

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Recapitalize, reorganize, merge, liquidate, sell all or substantially all of our assets, or take any similar action

***Then:***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The cash, common shares or other securities received by the depositary will become deposited securities. Subject to applicable laws and regulations, each ADS will automatically represent its equal common share of the new deposited securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The depositary may, and will if we ask them to, distribute some or all of the cash, common shares or other securities it received. Subject to applicable laws and regulations, it may also issue new ADSs or ask you to surrender your outstanding ADSs in exchange for new ADSs identifying the new deposited securities.

**Amendment and Termination** 

***How may the depositary agreement be amended?*** 

We may agree with the depositary to amend the deposit agreement and the ADSs without your consent for any reason. If the amendment adds or increases fees or charges, except for taxes and other governmental charges or certain expenses of the depositary, or prejudices an important right of ADS holders, it will only become effective 30 days after the depositary notifies you of the amendment. In no event may any amendment impair your right to surrender your ADSs and receive the common shares represented thereby, except in order to comply with mandatory provisions of applicable law. At the time an amendment becomes effective, you are considered, by continuing to hold your ADSs, to agree to the amendment and to be bound by the ADSs and the agreement as amended.

***How may the depositary agreement be terminated?*** 

The depositary will terminate the deposit agreement if we ask it to do so. The depositary may also terminate the agreement if the depositary has told us that it would like to resign and we have not appointed a new depositary bank within 180 days. In both cases, the depositary must notify you at least 30 days before termination.

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After termination, the depositary and its agents will be required to do only the following under the agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•advise you that the agreement is terminated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•collect distributions on the deposited securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•deliver common shares and other deposited securities upon cancellation of ADSs.

One year after termination, the depositary will, if practical, sell any remaining deposited securities by public or private sale, subject to applicable laws and regulations. After that, the depositary will hold the money it received on the sale, as well as any other cash it is holding under the agreement, for the pro rata benefit of the ADS holders that have not surrendered their ADSs. It will not invest the money and has no liability for interest. The depositary's only obligations will be to account for the money and other cash and with respect to indemnification. After termination, our only obligations will be with respect to indemnification and to pay certain amounts to the depositary.

**Limitations on Obligations and Liability to ADS Holders** 

***Limits on our Obligations and the Obligations of the Depositary; Limits on Liability to Holders of ADSs*** 

The deposit agreement expressly limits our obligations and the obligations of the depositary. It also limits our liability and the liability of the depositary. We and the depositary:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•are only obligated to take the actions specifically set forth in the deposit agreement without negligence or bad faith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•are not liable if either of us is prevented or delayed by law or circumstances beyond our control from performing our obligations under the deposit agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•are not liable if either of us exercises discretion permitted under the deposit agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•have no obligation to become involved in a lawsuit or other proceeding related to the ADSs or the deposit agreement on your behalf or on behalf of any other party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•may rely upon any documents we believe in good faith to be genuine and to have been signed or presented by the proper party.

In the deposit agreement, we and the depositary agree to indemnify each other under certain circumstances.

***Requirements for Depositary Actions*** 

Before the depositary will issue or register transfer of an ADS, make a distribution on an ADS, or permit withdrawal of common shares, the depositary may require:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•payment of stock transfer or other taxes or other governmental charges and transfer or registration fees charged by third parties for the transfer of any common shares or other deposited securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•production of satisfactory proof of the identity and genuineness of any signature or other information it deems necessary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•compliance with regulations it may establish, from time to time, consistent with the deposit agreement, including presentation of transfer documents.

The depositary may refuse to deliver, transfer or register transfers of ADSs generally when the transfer books of the depositary, our company or the registrar in Taiwan are closed or at any time if the depositary or our company thinks it advisable to do so.

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**Ownership Restrictions** 

We may restrict deposits of our common shares where such deposit might result in ownership or beneficial ownership of our common shares that exceed the limits under applicable law or our articles of incorporation. We may instruct the depositary to take action with respect to the ownership interest of any holder in excess of any such limitation, including but not limited to refusing to accept common shares for deposit from a holder in excess of the applicable limitation if a deposit of common shares would result in a violation of the applicable limitations, to the extent such action is permitted by applicable law.

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## Exhibit 8.1

**Exhibit 8.1**

**LIST OF SUBSIDIARIES**

**(as of March 31, 2026)**

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| | |
|:---|:---|
| **NAME OF ENTITY** | **JURISDICTION OF INCORPORATION** |
| CHIEF Telecom Inc. | Taiwan, R.O.C. |
| Unigate Telecom Inc. | Taiwan, R.O.C. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CHYP Multimedia Marketing & Communications Co., Ltd. | Taiwan, R.O.C. |
| Chunghwa Investment Co., Ltd. | Taiwan, R.O.C. |
| Chunghwa Precision Test Tech. Co., Ltd. | Taiwan, R.O.C. |
| Chunghwa System Integration Co., Ltd. | Taiwan, R.O.C. |
| Light Era Development Co., Ltd. | Taiwan, R.O.C. |
| Senao International Co., Ltd. | Taiwan, R.O.C. |
| Youth Co., Ltd. | Taiwan, R.O.C. |
| ISPOT Co., Ltd. | Taiwan, R.O.C. |
| Aval Technologies Co., Ltd. | Taiwan, R.O.C. |
| Wiin Technology Co., Ltd. | Taiwan, R.O.C. |
| Senyoung Insurance Agent Co., Ltd. | Taiwan, R.O.C. |
| Spring House Entertainment Tech. Inc. | Taiwan, R.O.C. |
| Honghwa International Co., Ltd. | Taiwan, R.O.C. |
| Smartfun Digital Co., Ltd. | Taiwan, R.O.C. |
| Chunghwa Leading Photonics Tech Co., Ltd. | Taiwan, R.O.C. |
| CHT Security Co., Ltd. | Taiwan, R.O.C. |
| International Integrated Systems, Inc. | Taiwan, R.O.C. |
| Unitronics Technology Corp. | Taiwan, R.O.C. |
| TestPro Investment Co., Ltd. | Taiwan, R.O.C. |
| NavCore Tech. Co., Ltd. | Taiwan, R.O.C. |
| Chunghwa Digital Cultural and Creative Capital Co., Ltd. | Taiwan, R.O.C. |
| CHT InventAI Co., Ltd. | Taiwan, R.O.C. |
| Chunghwa Digital Cultural and Creative Fund | Taiwan, R.O.C. |
| Prime Asia Investments Group Ltd. | British Virgin Islands |
| Donghwa Telecom Co., Ltd. | Hong Kong |
| Chunghwa Hsingta Co., Ltd. | Hong Kong |
| Chunghwa Telecom Japan Co., Ltd. | Japan |
| CHPT Japan Co., Ltd. | Japan |
| Sakuyo Health Science Co., Ltd. | Japan |
| Chief International Corp. | Samoa Islands |
| Chunghwa Precision Test Tech. International, Ltd. | Samoa Islands |
| Shanghai Taihua Electronic Technology Limited | People's Republic of China |
| Su Zhou Precision Test Tech. Ltd. | People's Republic of China |
| Shanghai Chief Telecom Co., Ltd. | People's Republic of China |
| Chunghwa Telecom Singapore Pte., Ltd. | Singapore |
| Chunghwa Telecom Global, Inc. | United States of America |
| Chunghwa Precision Test Tech USA Corporation | United States of America |
| Chunghwa Telecom Vietnam Co., Ltd. | Vietnam |
| Chunghwa Telecom (Thailand) Co., Ltd. | Thailand |
| Chunghwa Telecom Europe GmbH. | Germany |
| Chunghwa Telecom Malaysia SDN. BHD. | Malaysia |

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## Exhibit 11.2

**Exhibit 11.2**

**Ethical Corporate Management Best Practice Principles for Chunghwa Telecom Co., LTD.** 

1. All articles adopted by the 6<sup>th</sup> Board of Directors at the 5<sup>th</sup> meeting on December 28, 2010.

2. Amended by the 7<sup>th</sup> Board of Directors at the 2<sup>nd</sup> meeting on August 13, 2013.

3. Amended by the 9<sup>th</sup> Board of Directors at the 8<sup>th</sup> meeting on August 5, 2020.

4. Amended by the 9<sup>th</sup> Board of Directors at the 5<sup>th</sup> interim meeting on September 28, 2021.

5. Amended by the 10<sup>th</sup> Board of Directors at the 6<sup>th</sup> interim meeting on April 17, 2024.

6. Amended by the 11th Board of Directors at the 1th meeting on August 8, 2025.

# Article 1 (Purpose of enactment and applicable scope)
The Ethical Corporate Management Best Practice Principles ("Principles") is enacted to assist Chunghwa Telecom Co., Ltd. and its affiliated institutions (hereinafter referred to as the "Company") to establish a corporate culture of ethical management and sound development.

The applicable scope of the Principles covers the Company's subsidiaries, any foundation constituted as a juristic person to which the Company's direct or indirect accumulated contribution of funds exceeds 50% of the total funds received, and other institutions or juridical persons which are substantially controlled by the Company (hereinafter referred to as the "Business Groups").

# Article 2 (Prohibition of unethical conducts)
When engaging in commercial activities, directors, managers, employees, and mandataries of the Company or persons having substantial control over the Company (hereinafter referred to as the "substantial controllers") shall not directly or indirectly offer, promise to offer, request or accept any improper benefits, nor commit unethical acts including breach of ethics, illegal acts, or breach of fiduciary duty (hereinafter referred to as the "unethical conduct") for purposes of acquiring or maintaining benefits.

Parties referred to in the preceding paragraph include civil servants, political candidates, political parties or members of political parties, state-run or private-owned businesses or institutions, and directors, supervisors, managers, employees or substantial controllers or other interested parties of the same.

# Article 3 (Types of benefits)
"Benefits" mentioned in the Principles means any valuable things, including money, endowments, commissions, positions, services, preferential treatment or rebates of any type or in any name. Benefits received or given occasionally in accordance with accepted social customs and that do not adversely affect specific rights and obligations shall be excluded.

# Article 4 (Legal compliance)
The Company shall comply with the Company Act, Securities and Exchange Act, Business Accounting Act, Political Donations Act, Anti-Corruption Act, Government Procurement Act, Act on Recusal of Public Servants Due to Conflicts of Interest, TWSE/GTSM-listing related rules, or other laws or regulations regarding commercial activities, as the underlying basic premise to facilitate ethical corporate management.

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# Article 5 (Policy)
The Company shall abide by the operational philosophies of honesty, transparency and responsibility, base policies on the principle of good faith and obtain approval from the board of directors, and establish good corporate governance and risk control and management mechanism so as to create an operational environment for sustainable development.

# Article 6 (Guidelines for conduct)
The Company has established the "Procedures for Ethical Management and Guidelines for Conduct of Chunghwa Telecom Co., Ltd." (hereinafter referred to as the " Guidelines for Conduct") in order to implement the operational philosophies and policies prescribed in the preceding article, which includes operating procedures, behavior guidelines, and training, etc.

The Guidelines for Conduct established in accordance with the previous paragraph shall comply with relevant laws and regulations of the territory where the Company and its Business Groups are operating.

# Article 7 (The scope of the Guidelines for Conduct)
The Company shall analyze and assess on a regular basis business activities within their business scope which are at a higher risk of being involved in unethical conduct, and establish its Guidelines for Conduct accordingly and review their adequacy and effectiveness.

The Company should refer to prevailing domestic and foreign standards or guidance in establishing the "Guidelines for Conduct", which shall at least include preventive measures against the following:

1. Offering and acceptance of bribes.

2. Illegal political donations.

3. Improper charitable donations or sponsorship.

4. Offering or acceptance of unreasonable presents or hospitality, or other improper benefits.

5. Misappropriation of trade secrets and infringement of trademark rights, patent rights, copyrights, and other intellectual property rights.

6. Engaging in unfair competitive practices.

7. Damage directly or indirectly caused to the rights or interests, health, or safety of consumers or other stakeholders in the course of research and development, procurement, manufacture, provision, or sale of products and services.

# Article 8 (Promises and executions)
The Company shall request their directors and senior management to issue a statement of compliance with the ethical management policy and require in the terms of employment that employees comply with such policy.

The Company and its Business Groups shall clearly specify in their rules and external documents and on the company website the ethical corporate management policies and the

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commitment by the board of directors and senior management on rigorous and thorough implementation of such policies, and shall carry out the policies in internal management and in commercial activities.

The Company shall compile documented information on the ethical management policy, statement, commitment and implementation mentioned in the first and second paragraphs and retain said information properly.

# Article 9 (Engaging in commercial activities under ethics)
The Company shall engage in commercial activities in a fair and transparent manner based on the principle of ethical management.

Prior to any commercial transactions, the Company shall take into consideration the legality of their agents, suppliers, clients, or other trading counterparties and whether any of them are involved in unethical conduct, and shall avoid any dealings with persons so involved.

When entering into contracts with their agents, suppliers, clients, or other trading counterparties, the Company shall include in such contracts terms requiring compliance with ethical corporate management policy and that in the event the trading counterparties are involved in unethical conduct, the Company may at any time terminate or rescind the contracts.

# Article 10 (Prohibition of offering and acceptance of bribery)
When conducting business, the Company and their directors, managers, employees, mandataries, and substantial controllers, may not directly or indirectly offer, promise to offer, request, or accept any improper benefits in whatever form to or from clients, agents, contractors, suppliers, public servants, or other stakeholders.

# Article 11 (Prohibition of offering illegal political donations)
When directly or indirectly offering a donation to political parties or organizations or individuals participating in political activities, the Company and their directors, managers, employees, mandataries, and substantial controllers, shall comply with the Political Donations Act and their own relevant internal operational procedures, and shall not make such donations in exchange for commercial gains or business advantages.

# Article 12 (Prohibition of improper charitable donation or sponsorship)
When making or offering donations and sponsorship, the Company and their directors, managers, employees , mandataries, and substantial controllers shall comply with relevant laws and regulations and internal operational procedures, and shall not surreptitiously engage in bribery.

# Article 13 (Prohibition of unreasonable presents, hospitality or other improper benefits)
The Company and their directors, managers, employees, mandataries, and substantial controllers shall not directly or indirectly offer or accept any unreasonable presents, hospitality or other improper benefits to establish business relationship or influence commercial transactions.

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# Article 14 (Prohibition of infringement of intellectual property rights)
The Company and their directors, managers, employees, mandataries, and substantial controllers shall observe applicable laws and regulations, the Company's internal operational procedures, and contractual provisions concerning intellectual property, and may not use, disclose, dispose, or damage intellectual property or otherwise infringe intellectual property rights without the prior consent of the intellectual property rights holder.

# Article 15 (Prohibition of unfair competition)
The Company shall engage in business activities in accordance with applicable competition laws and regulations, and may not fix prices, make rigged bids, establish output restrictions or quotas, or share or divide markets by allocating customers, suppliers, territories, or lines of commerce.

# Article 16 (Prevent products or services from harming stakeholders)
In the course of research and development, procurement, make, provision, or sale of products and services, the Company and their directors, managers, employees, mandataries, and substantial controllers shall observe applicable laws and regulations and international standards to ensure the transparency of information about, and safety of, their products and services. They shall also adopt and publish a policy on the protection of the rights and interests of consumers or other stakeholders, and carry out the policy in their operations, with a view to preventing their products and services from directly or indirectly damaging the rights and interests, health, and safety of consumers or other stakeholders. Where there are sufficient facts to determine that the Company's products or services are likely to pose any hazard to the safety and health of consumers or other stakeholders, the Company shall, in principle, recall those products or suspend the services immediately.

# Article 17 (Organization and responsibility)
The directors, managers, employees, mandataries, and substantial controllers of the Company shall exercise the due care of good administrators to urge the Company to prevent unethical conduct, always review the results of the preventive measures and continually make adjustments so as to ensure thorough implementation of its ethical corporate management policies.

To strengthen ethical corporate management, the Chairman of Chunghwa Telecom serves as the highest responsible officer for the Company's integrity management. The Organization and Talent Development Department (hereinafter referred to as "HR Department") is responsible for allocating resources and personnel to formulate, revise, manage, and oversee the implementation of the Company's integrity policies and codes of conduct. The HR Department also reports the execution results to the Board of Directors on a regular basis, at least once a year.

According to the provisions of the preceding paragraph, the main responsibilities of the HR Department are as follows:

1. Assisting in incorporating ethics and moral values into the Company's business strategy and adopting appropriate prevention measures against corruption and malfeasance to ensure ethical management in compliance with the requirements of laws and regulations.

2. Analyzing and assessing on a regular basis the risk of involvement in unethical conduct within the business scope, adopting accordingly programs to prevent unethical conduct, and setting out

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in each program the standard operating procedures and conduct guidelines with respect to the Company's operations and business.

3. Planning the internal organization, structure, and allocation of responsibilities and setting up check-and-balance mechanisms for mutual supervision of the business activities within the business scope which are possibly at a higher risk for unethical conduct.

4. Promoting and coordinating awareness and educational activities with respect to ethics policy.

5. Developing a whistle-blowing system and ensuring its operating effectiveness.

6. Assisting the board of directors and management in auditing and assessing whether the prevention measures taken for the purpose of implementing ethical management are effectively operating, and preparing reports on the regular assessment of compliance with ethical management in operating procedures.

# Article 18 (Legal compliance for business operation)
Directors, managers, employees, mandataries, and substantial controllers of the Company shall comply with laws and regulations and the prevention programs when conducting business.

# Article 19 (Interest avoidance)
The Company shall adopt policies for preventing conflicts of interest to identify, monitor, and manage risks possibly resulting from unethical conduct, and shall also offer appropriate means for directors, managers, and other stakeholders attending or present at board meetings to voluntarily explain whether their interests would potentially conflict with those of the Company.

When a proposal at a given board of directors meeting concerns the personal interest of, or the interest of the juristic person represented by, any of the directors, managers, and other stakeholders attending or present at board meetings of the Company, the concerned person shall state the important aspects of the relationship of interest at the given board meeting. If his or her participation is likely to prejudice the interest of the Company, the concerned person may not participate in discussion of or voting on the proposal and shall recuse himself or herself from the discussion or the voting, and may not exercise voting rights as proxy for another director. The directors shall practice self-discipline and must not support one another in improper dealings.

The directors, managers, employees, mandataries, and substantial controllers shall not take advantage of their positions or influence in the Company to obtain improper benefits for themselves, their spouses, parents, children or any other person.

# Article 20 (Accounting and internal control)
The Company shall establish effective accounting systems and internal control systems for business activities which may be at a higher risk of being involved in unethical conduct, not have under-the-table accounts or maintain secret accounts, and conduct reviews from time to time so as to ensure that the design and enforcement of the systems will continue to be effective.

The internal audit unit of the Company shall, based on the results of assessment of the risk of involvement in unethical conduct, devise relevant audit plans including auditees, audit scope, audit items, audit frequency, etc., and examine accordingly the compliance with the guidelines for

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conduct. The internal audit unit may engage a certified public accountant to carry out the audit, and may engage professionals to assist if necessary.

The results of examination in the preceding paragraph shall be reported to senior management and the ethical management dedicated unit and put down in writing in the form of an audit report to be submitted to the board of directors.

# Article 21 (Procedures and guidelines of conduct)
The Company shall establish "Guidelines for Conduct" in accordance with Article 6 hereof to guide directors, managers, employees, and substantial controllers on how to conduct business. The procedures and guidelines should at least contain the following matters:

1. Standards for determining whether improper benefits have been offered or accepted.

2. Procedures for offering legitimate political donations.

3. Procedures and the standard rates for offering charitable donations or sponsorship.

4. Rules for avoiding work-related conflicts of interests and how they should be reported and handled.

5. Rules for keeping confidential trade secrets and sensitive business information obtained in the ordinary course of business.

6. Regulations and procedures for dealing with suppliers, clients and business transaction counterparties suspected of unethical conduct.

7. Handling procedures for violations of these Principles.

8. Disciplinary measures on offenders.

# Article 22 (Education training and review)
The chairperson, general manager, or senior management of the Company shall communicate the importance of corporate ethics to its directors, employees, and mandataries on a regular basis.

The Company shall periodically organize training and awareness programs for directors, managers, employees, mandataries, and substantial controllers and invite the Company's commercial transaction counterparties so they understand the Company's determination to implement ethical corporate management, the related policies, prevention programs and the consequences of committing unethical conduct.

The Company shall apply the policies of ethical corporate management when creating its employee performance appraisal system and human resource policies to establish a clear and effective reward and discipline system.

# Article 23 (Whistleblowing system)
The Company shall adopt a concrete whistle-blowing system, and should be implemented in accordance with the principle of segregation of power for the investigation of violations of the Company's employees and the guidelines for handling employee appeals. The whistle-blowing system shall include at least the following:

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1. An independent mailbox or hotline, either internally established and publicly announced or provided by an independent external institution, to allow internal and external personnel of the Company to submit reports.

2. Dedicated personnel or unit appointed to handle the whistle-blowing system. Any tip involving a director or senior management shall be reported to the independent directors or the Audit Committee. Categories of reported misconduct shall be delineated and standard operating procedures for the investigation of each shall be adopted.

3. Follow-up measures to be adopted depending on the severity of the circumstances after investigations of cases reported are completed. Where necessary, a case shall be reported to the competent authority or referred to the judicial authority.

4. Documentation of case acceptance, investigation processes, investigation results, and relevant documents.

5. Confidentiality of the identity of whistle-blowers and the content of reported cases, and an undertaking regarding anonymous reporting.

6. Measures for protecting whistle-blowers from inappropriate disciplinary actions due to their whistle-blowing.

7. Whistle-blowing incentive measures.

When material misconduct or likelihood of material impairment to the Company comes to their awareness upon investigation, the dedicated personnel or unit handling the whistle-blowing system shall immediately prepare a report and notify the independent directors or the Audit Committee in written form.

# Article 24(Disciplinary and appeal system)
The Company shall clearly define and announce disciplinary and grievance systems for violations of ethical integrity, and immediately disclose information on violation content and handling status on the Company's internal website.

# Article 25(Disclosure of information)
The Company shall collect quantitative data about the promotion of ethical corporate management and continuously analyze and assess the effectiveness of the promotion of ethical corporate management policy, and shall also disclose the measures taken for implementing ethical corporate management, the status of implementation, the foregoing quantitative data, and the effectiveness of promotion on the Company websites, annual reports, and prospectuses, and shall disclose its ethical corporate management best practice principles on the Market Observation Post System.

# Article 26 (Review and revision of the ethical corporate management policies and measures)
The Company shall at all times monitor the development of relevant local and international regulations concerning ethical corporate management and encourage their directors, managers, and employees to make suggestions, based on which the adopted ethical corporate management policies and measures taken will be reviewed and improved with a view to achieving better implementation of ethical corporate management.

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# Article 27 (Enforcement)
The ethical corporate management best practice principles of the Company shall be implemented after the board of directors grants the approval, and shall be sent to report at a shareholders' meeting. The same procedure shall be followed when the principles have been amended.

When the Company submits its ethical corporate management best practice principles to the board of directors for discussion pursuant to the preceding paragraph, the board of directors shall take into full consideration each independent director's opinions. Any objections or reservations of any independent director shall be recorded in the minutes of the board of directors meeting. An independent director that cannot attend the board meeting in person to express objections or reservations shall provide a written opinion before the board meeting, unless there is some legitimate reason to do otherwise, and the opinion shall be specified in the minutes of the board of directors meeting.

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## Exhibit 11.3

**Exhibit 11.3**

**Control Guidelines for the Prevention of Insider Trading for**

**Chunghwa Telecom Co., Ltd.**

Amended by the 5th Board of Directors at the 20th meeting on Dec. 22, 2009

Announced in CHT 2010.1.8 Shin-Ren-Wu-Zu No. 0990000025 Letter.

Amended by the 6th Board of Directors at the 10th meeting on Aug. 26, 2011

Announced in CHT 2011.9.15 Shin-Ren-Wu-Zu No. 1000001112 Letter.

Amended by the 6th Board of Directors at the 17th meeting on Aug. 29, 2012

Announced in CHT 2012.9.10 Shin-Ren-Wu-Zu No. 1010001070 Letter.

Amended by the 7th Board of Directors at the 2nd meeting on Aug. 13, 2013

Announced in CHT 2013.8.22 Shin-Ren-Wu-Zu No. 1020000932 Letter.

Amended by the 7th Board of Directors at the 14th meeting on Mar. 11, 2016

Announced in CHT 2016.3.28 Shin-Ren-Si-Zu No. 1050000371 Letter.

Amended by the 9th Board of Directors at the 5th meeting on Sept. 28, 2021

Announced in CHT 2021.12.30 Shin-Ren-Yi-Zu No. 1100002527 Letter.

Amended by the 9th Board of Directors at the 19th Meeting on May 6, 2022

Announced in CHT 2022.5.30 Shin-Ren-Guan-Shi No. 1110001507 Letter.

Amended by the 11th Board of Directors at the 1th Meeting on Aug. 8, 2025

Announced in CHT 2025.8.15 Shin-Ren-Guan-Shi No. 1140001943 Letter.

**Chapter 1 General Provisions**

**Article 1(Purpose)**

Chunghwa Telecom Co., Ltd. (hereinafter referred to as "the Company") hereby establishes this set of Control Guidelines to establish a management and control mechanism that prevents insider trading, restraints inappropriate disclosure of information, and ensures the timeliness and accuracy of the Company's publicly disclosed information.

**Article 2 (Applicable Scope)** 

In managing material inside information and preventing insider trading, the Company shall adhere to the Guidelines, in addition to the Securities and Exchange Act, its Enforcement Rules, and other relevant laws and orders, as well as the regulations stipulated by the Financial Supervisory Commission of the Executive Yuan and the Taiwan Stock Exchange.

**Article 3 (Applicable Subjects and Definitions)** 

The following are applicable subjects for the prevention of insider trading:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Company's director, managerial officer, a natural person designated to exercise powers as a representative pursuant to Article 27, paragraph 1 of the Company Act, and/or an employee involved in the Company's material inside information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Shareholders holding more than ten percent of the Company's shares.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Any person who has learned the information by reason of position, occupation or controlling relationship.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. A person who, though no longer among those listed in one of the preceding three subparagraphs, has only lost such status within the last six months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Any person who has learned information from any of the persons named in the preceding four subparagraphs.

The insiders referred to in these guidelines include directors, managers, or shareholders holding more than 10% of the Company's total shares.

The scope of managers referred to in these guidelines shall comply with laws and regulations and interpretative orders from competent authorities, including but not limited to the Company's Chief Executive Officer, President, Senior Executive Vice Presidents, Vice Presidents and Assistant Vice Presidents of Headquarters, Presidents, Vice Presidents and Assistant Vice Presidents of each Technology Group and Business Group, Presidents and Vice Presidents of Telecommunication Laboratories and Training Institute, and Presidents and Vice Presidents of each Branch.

**Article 4 (Scope of Material Inside Information)** 

For the purpose of the Guidelines, material inside information refers to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Dishonor of a negotiable instrument due to insufficient deposits, refusal of a financial institution to honor a transaction, or any other loss of credit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Any material effect on the Company's finances or business resulting from any litigious or non-litigious matter, administrative disposition, contentious administrative procedure, injunctive procedure, or compulsory enforcement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Any material effect on the Company's business resulting from any serious decrease in output or complete or partial suspension of work, leasing out of the Company's plant or principal equipment, or pledge or mortgage of all or a principal portion of the Company's assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Any event set forth in Paragraph 1 of Article 185 of the Company Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Individuals whose shares are prohibited from being transferred under the court's ruling in accordance with Article 287, Paragraph 1, Item 5 of the Company Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Change in chairman, general manager, or one-third or more of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Change of certified public accountant (CPA) for any reason other than internal adjustments within the certifying accounting firm.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Any material effect on the Company's finances or business resulting from any signing, amendment, termination, or rescission of an important memorandum of understanding, a plan for

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a strategic alliance or other business cooperation, or an important contract, change in any material respect of a business plan, completion of development of a new product, successful development and formal entry into the full-scale production stage of an experimental product, acquisition of another business entity, or transactions involving the acquisition or transfer of a patent right, exclusive trademark right, copyright, or other intellectual property rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. The Company carries out any material transaction of public offering and issuance or private placement of equity-type securities, capital reduction, corporate merger, acquisition, or split, share exchange, conversion, or transfer of shares from others, direct or indirect investment project, or there is any material change in any of the above matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. The Company is in proceedings for reorganization, bankruptcy, dissolution, or application for stock delisting or termination of OTC securities trading, or there is any material change in any of the above matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. A member of the Company's board of directors is subject to a provisional injunction ruling suspending his or her exercise of powers, making it impossible for the board of directors to exercise its powers, or all independent directors of the Company are removed from office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. Occurrence of a disaster, group protest, strike, environmental pollution, or any other material event, where the Company incurs a material loss, or where a relevant authority orders suspension of work, suspension of business, or termination of business, or revokes or voids a relevant permit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. Dishonor of a negotiable instrument, filing for bankruptcy or reorganization, or any other similar event of a material nature, with respect to a related party of the Company, or to a principal debtor of the Company or a joint and several guarantor of a principal debtor; or inability by a principal obligor, in favor of whom the Company has made an endorsement or guarantee, to settle a matured negotiable instrument, loan, or other obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. Occurrence of a significant event of internal control-related malpractice, non arms-length transaction, or defalcation of the Company's assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. Suspension of part or all business transactions between the Company and a principal client or supplier.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. Upon occurrence of any of the following with respect to the financial report of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Failure to make a public announcement or a filing in a manner consistent with the requirements of Article 36 of the Securities and Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) An error or omission in a financial report prepared by the Company, with respect to which Article 6 of the Enforcement Rules to the Securities and Exchange Act requires a correction to and further a restatement of the financial report.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) A certified public accountant issues an audit or review report containing an opinion other than an unqualified or modified unqualified opinion. The same does not apply, however, in cases where the certified public accountant issues a qualified audit or review report for the reason of annual amortization of losses, as permitted by law, or for the reason that an amount of long-term equity investment and profit/loss thereupon presented in the first-quarter, third-quarter, or semiannual financial report is calculated on the basis of financial statements of the investee company that have not been audited or reviewed by a certified public accountant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) A certified public accountant issues an audit or review report indicating substantial doubt about the going-concern assumption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. A significant discrepancy between financial forecasts already publicly disclosed and actual figures or between updated (or corrected) financial forecasts and original forecasts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. The Company's operating income or income before tax shows a significant change from the same period of the previous year, or shows a significant change compared with the previous period and the change is not caused by seasonal factors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. When any of the following accounting events occurs to the Company, and the event, although it does not affect the profit/loss of the current period, has resulted in a material change in the net worth of the current period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Revaluation of assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Period-end valuation of financial instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Foreign currency translation adjustments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Financial instruments accounted for using hedge accounting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Net losses not recognized as retirement fund costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. The fundraising plan for corporate bond redemption cannot be carried out.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. The Company buys back its own shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. The Company makes or suspends a public tender offer to acquire securities issued by a public company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. The Company acquires or disposes of a major asset.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. If the Company has issued securities overseas, the occurrence of a material event that requires prompt public announcement or filing, as provided in the government laws and regulations, or securities exchange market rules and regulations, of the country where the securities are listed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. Matters that have been approved for special confidentiality.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. Persons duly charged with exercising searches under the law conduct a search of the Company, its controlling company, or any of its major subsidiaries as defined in Article 2-1, paragraph 2 of the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. The following information that has material impact on the Company's ability to pay principal and interest, except for cases where the Company has issued corporate bonds guaranteed by banks:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Company incurs a material loss that is likely to lead to financial difficulty, suspension of business, or termination of business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The amount of the Company's current assets, with inventory and prepaid expenses deducted and net cash inflows generated before the maturity date of corporate bonds added, is insufficient to cover the principal or interest due in the near future for the most recent period and other current liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The interest rate of any already issued corporate bonds is calculated at a non-fixed interest rate, and the interest expenses have risen significantly due to market interest rate fluctuations and affect the ability of the Company to pay principal or interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Any other matter that could affect the ability of the Company to pay principal or interest.

28. Other significant events that may impact the Company's ability to continue operations, including matters related to the Company's finances, business, supply and demand of the securities in the market, or public acquisitions, and any information that has a material effect on the stock price or the investment decisions of legitimate investors.

**Article 5 (Definition of Insider Trading Prevention)**

The applicable subjects of the Company's insider trading prevention measures shall not, when having actual knowledge of material inside information of the Company, buy or sell stocks, other securities with equity characteristics, or non-equity corporate bonds of the Company, invested enterprises, or project targets, either in their own name or through others, from the time such information becomes clear until it is disclosed or within 18 hours after disclosure.

Insiders of the Company are prohibited from trading in its shares during the blackout period of 30 days prior to the announcement of the annual financial report and 15 days prior to the quarterly financial report.

**Article 6 (Establishment and Maintenance of Shareholding Information for Relevant Personnel)**

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The Company shall establish and maintain shareholding records of insiders and their related parties in accordance with regulations of competent authorities. Related parties include the insider's spouse, minor children, and persons who hold stocks under the insider's name.

When insiders and their related parties are newly appointed or resign, the Company shall report the new appointment or resignation information to the competent authority within two days after the event occurs. If there are changes in related parties, insiders shall immediately notify the Company when such events occur.

Insiders and their related parties shall comply with regulations of competent authorities regarding equity transactions and reporting of the Company's stocks.

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**Chapter 2 Operational Procedure for Maintaining the Confidentiality of Material Inside Information**

**Article 7 (Confidentiality Procedures)** 

The confidentiality procedures for personnel involved in or aware of the Company's material inside information are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Individuals subject to the Company's insider trading prevention policy must maintain confidentiality when involved in or aware of the Company's material inside information and must not disclose such information to external parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Individuals subject to the Company's insider trading prevention policy must sign a "Project-specific Confidentiality Undertaking" (as per the attached form) when involved in the Company's material inside information. The Undertaking shall be kept on file by the respective business unit in charge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Institutions and individuals outside the Company who are involved in or aware of the Company's material inside information must maintain confidentiality and must not disclose such information to external parties.

Institutions involved must also sign the "Project-specific Confidentiality Undertaking." (as per the attached form) The Undertaking shall be kept on file by the respective business unit in charge.

The term "external disclosure" referred to in Items 1 and 3 of the preceding paragraph means that personnel who participate in or are aware of the Company's material inside information disclose such information to their spouses, children, employees who do not participate in or are unaware of such material inside information, and other persons.

**Article 8 (Transmission and Storage of Confidential Information)** 

The transmission and storage of all material information shall be in accordance with the following guidelines:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Proper protection of confidentiality shall be given to files and documents containing the Company's material inside information transmitted in written form. When transmitted by e-mail or other electronic means, such files and documents must be processed with appropriate security technology such as encryption or electronic signatures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. When the Company's internal confidential files and documents are stored electronically, the following protection measures shall be taken:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Data access control and audit procedures shall be established.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Electronic data must not be stored in a network environment that is directly accessible by the public.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Data storage media shall be locked and stored in a secure location.

**Chapter 3 Disclosure Procedure for Material Inside Information**

**Article 9 (Principles of Disclosure of Material Inside Information)** 

The Company shall adhere to the following principles when making external disclosures of material inside information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The information disclosed shall be accurate, complete, and timely.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information disclosed shall be evidence-based.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The information shall be disclosed fairly.

**Article 10 (Timing and Venue for Disclosure of Material Inside Information)**

Except for circumstances specified in Paragraph 1 of Article 4 and Article 11 of the "Taiwan Stock Exchange Corporation Procedures for Verification and Disclosure of Material Information of Companies with Listed Securities," or those outlined in Chapter 4 regarding the suspension and resumption of trading, for any circumstances specified in Article 4 of the Guidelines, or if it is discovered that media reports are inconsistent with the facts, the procedures prescribed in Articles 3, 6, 12, and Articles 13-1 to 13-4 shall be followed. For all other cases, the relevant information or explanation concerning the material information shall be input into the Market Observation Post System (MOPS) before the start of trading hours on the business day following the date of occurrence of the event or the media report. If a press release is issued earlier, the information shall be input into the system simultaneously. The date of occurrence to be considered shall be the earliest of the following: the date of agreement, contract signing, payment, order transaction, transfer, resolution by the board of directors or its designated committee, or any other date sufficient to determine the transaction party and amount. However, for investments requiring regulatory approval, the earlier of the above dates or the date of receiving approval from the competent authority shall prevail.

**Article 11 (Implementation of Spokesperson System)** 

The Company shall handle external communications in accordance with the following principles:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The disclosure of the Company's material inside information, except as otherwise provided by law or regulation, shall be handled by the Company's spokesperson, or by an acting spokesperson, and the order of delegation shall be clearly determined. When necessary, the disclosure may be released directly by the responsible person of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Statements made by the Company's spokesperson and deputy spokesperson shall be limited to the scope authorized by the Company. Except for the Company's responsible person, spokesperson, and acting spokesperson, no other personnel of the Company may disclose material inside information externally without proper authorization.

**Article 12 (Records of Disclosure of Material Inside Information)** 

The Company shall retain the following records for the disclosure of information to external parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The person who discloses the information, the date, and the time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The method of information disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The content of the disclosed information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The content of any written materials delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Any other relevant information.

**Chapter 4 Establishing an Insider Trading Prevention Task Force**

**Article 13 (Establishing an Insider Trading Prevention Task Force)**

The Company shall establish an Insider Trading Prevention Task Force (hereinafter referred to as the "Task Force"). The General Manager shall appoint one Executive Vice President of the Company to serve as the convener of the Task Force. The heads of relevant departments and institutions shall serve as Task Force members, with the Headquarters' Organization and Talent Development Department acting as the secretariat for the Task Force. Meetings shall be held semi-annually in principle but may be convened at any time when necessary.

The responsibilities of the Task Force are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Formulate and supervise the implementation of insider trading prevention measures for the Company and its affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Review major cases involving the Company and its affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Propose recommendations for improvements and reforms related to the Company's insider trading prevention efforts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Plan and execute educational and promotional activities related to insider trading prevention.

**Article 14 (Reporting of Abnormal Situations)**

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If the Company's directors, managerial officers, or employees are aware of any leakage of material inside information, they must immediately report it to the Task Force Secretariat, which will then inform the Headquarters' Audit Department. Upon receiving such a report, the Task Force Secretariat shall conduct an investigation into the leak, compile findings, formulate countermeasures, and submit them to the Task Force Convener. The Convener shall then call upon relevant units for discussions.

**Article 15 (Handling of Violations)**

If any of the following situations occur, the Company shall hold the relevant personnel administratively accountable in accordance with the standards for rewards and punishments for employees. If the individual holds a managerial or higher position, the matter shall also be handled in accordance with the Company's evaluation guidelines for senior executives, and appropriate legal measures shall be taken:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Personnel of the Company disclose material inside information without authorization to any external party or otherwise violate the Guidelines or any other applicable law or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. A spokesperson or deputy spokesperson of the Company communicates to any external party any information beyond the scope authorized by the Company, or otherwise violates these Guidelines or any other applicable law or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Any person outside the Company divulges any material inside information of the Company and causes damage to any property or interest of the Company.

**Chapter 5 Internal Control Operations and Educational Promotion**

**Article 16 (Internal Control Mechanism)**

The Guidelines are incorporated into the Company's internal control system. Internal auditors shall periodically assess compliance and prepare an audit report to ensure the effective implementation of management of these control measures for insider trading prevention.

**Article 17 (Educational Promotion)**

The Company shall provide educational promotion to directors, managerial officers, and applicable subjects concerning the Guidelines and related regulations on an annual basis.

The Company shall provide educational promotion to newly appointed directors, managerial officers, and applicable subjects as appropriate.

**Chapter 6 Supplementary Provisions**

**Article 18 (Formulation and Amendment)**

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These Guidelines are enforced upon the approval of the Board and the same procedures will apply to amendment thereafter from time to time.

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Attachment

**Project-specific Confidentiality Undertaking**

To Chunghwa Telecom Co., Ltd.

I, the undersigned, hereby acknowledge and guarantee that all information obtained during the execution of this project **(Project Name or Project Code:** ___________________________________________**)**—including but not limited to documents, drawings, reports, computer data, figures, trade secrets, and any other related materials—shall be treated as strictly confidential. I shall not disclose or make such information available to any third party, nor to use it for my own benefit or that of any third party. In the event of any disclosure, transfer, or misuse of the information, resulting in any loss or damage to Chunghwa Telecom Co., Ltd., I shall compensate for any loss or damage incurred and bear all subsequent legal responsibilities. This undertaking is hereby made as proof.

I hereby acknowledge that I am fully aware of and understand Article 157 and Article 157-1 of the Securities and Exchange Act of the Republic of China regarding the prohibition of short-swing trading and insider trading, and I promise to strictly comply with and fulfill my legal responsibilities. This affidavit is hereby executed for record.

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| | |
|:---|:---|
| **Name:** | (Signature/Seal) |

---

**Personal Identification Number/ Business Registration Number :**<br>

**Telephone :** <br>

**Permanent Address:**<br>

**Date:** <br>

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## Exhibit 12.1

**Exhibit 12.1**

**CERTIFICATION BY THE CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Chih-Cheng Chien, certify that:

1. I have reviewed this annual report on Form 20-F of Chunghwa Telecom Co., Ltd.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4. The company's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the company's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting; and

5. The company's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.

Date: April 15, 2026

---

| | | |
|:---|:---|:---|
| By: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Chih-Cheng Chien | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Chih-Cheng Chien |
|  | **Name:** | **Chih-Cheng Chien** |
|  | **Title:** | &nbsp;&nbsp;&nbsp;&nbsp;**Chairman and Chief Executive Officer** |

---

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## Exhibit 12.2

**Exhibit 12.2**

**CERTIFICATION BY THE CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Wen-Hsin Hsu, certify that:

1. I have reviewed this annual report on Form 20-F of Chunghwa Telecom Co., Ltd.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4. The company's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the company's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting; and

5. The company's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.

Date: April 15, 2026

---

| | | |
|:---|:---|:---|
| By: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Wen-Hsin Hsu | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Wen-Hsin Hsu |
|  | **Name:** | **Wen-Hsin Hsu** |
|  | **Title:** | &nbsp;&nbsp;&nbsp;&nbsp;**Chief Financial Officer** |

---

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## Exhibit 13.1

**Exhibit 13.1**

**CERTIFICATION BY THE CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report on Form 20-F of Chunghwa Telecom Co., Ltd. (the "Company") for the year ended December 31, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Chih-Cheng Chien, Chairman and Chief Executive Officer of the company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the company.

Date: April 15, 2026

---

| | | |
|:---|:---|:---|
| By: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Chih-Cheng Chien | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Chih-Cheng Chien |
|  | **Name:** | **Chih-Cheng Chien** |
|  | **Title:** | &nbsp;&nbsp;&nbsp;&nbsp;**Chairman and Chief Executive Officer** |

---

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## Exhibit 13.2

**Exhibit 13.2**

**CERTIFICATION BY THE CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report on Form 20-F of Chunghwa Telecom Co., Ltd. (the "Company") for the year ended December 31, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Wen-Hsin Hsu, Chief Financial Officer of the company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the company.

Date: April 15, 2026

---

| | | |
|:---|:---|:---|
| By: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Wen-Hsin Hsu | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Wen-Hsin Hsu |
|  | **Name:** | **Wen-Hsin Hsu** |
|  | **Title:** | &nbsp;&nbsp;&nbsp;&nbsp;**Chief Financial Officer** |

---

------