6-K

1934 Act Registration No. 1-31731

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

Dated May 11, 2023

Chunghwa Telecom Co., Ltd.

(Translation of Registrant’s Name into English)

21-3 Xinyi Road Sec. 1,

Taipei, Taiwan, 100 R.O.C.

(Address of Principal Executive Office)

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

Form 20-F  ☒            Form 40-F  ☐

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

Yes  ☐            No  ☒

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

1

EXHIBIT INDEX

Exhibit	Description
99.1	To announce the differences between consolidated financial statements for the three months ended March 31, 2023 under Taiwan-IFRSs and that under IFRSs
99.2	Consolidated Financial Statements for the Three Months Ended March 31, 2023 and 2022 and Independent Auditors’ Review Report pursuant to International Financial Reporting Standards adopted by ROC (“Taiwan-IFRSs”)
99.3	Consolidated Financial Statements for the Three Months Ended March 31, 2023 and 2022 pursuant to International Financial Reporting Standards issued by the International Accounting Standards Board (“IFRSs”)

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant Chunghwa Telecom Co., Ltd. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: May 11, 2023

Chunghwa Telecom Co., Ltd.
By:	/s/ Yu-Shen Chen
Name:	Yu-Shen Chen
Title:	Chief Financial Officer

3

EX-99.1

Exhibit 99.1

To announce the differences between consolidated financial statements for the three months ended March 31, 2023 under Taiwan-IFRSs and that under IFRSs

Date of events: 2023/5/11

Contents:

1. Date of occurrence of the event: 2023/5/11

2. Of which year/ quarter financial report required to be adjusted: The first quarter of 2023

3. Accounting principles applied (domestic listing securities):

Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China (“Taiwan-IFRSs”)

4. Inconsistent items/ amounts (domestic listing securities):

Under Taiwan-IFRSs, Chunghwa Telecom Co., Ltd. and its subsidiaries (or the “Company”) reported consolidated net income of NT$9,873,046 thousand, consolidated net income attributable to stockholders of the parent of NT$9,643,255 thousand, and basic earnings per share of NT$1.24 for the three months ended March 31, 2023, respectively. The Company also reported total consolidated assets of NT$524,535,450 thousand, total consolidated liabilities of NT$121,043,986 thousand, and total consolidated equity of NT$403,491,464 thousand as of March 31, 2023.

5. Accounting principles applied (securities issued overseas):

IAS 34 “Interim Financial Reporting” as issued by the International Accounting Standards Board (“IFRSs”)

6. Inconsistent items/ amounts (securities issued overseas):

Under IFRSs, the Company reported consolidated net income of NT$9,422 million, consolidated net income attributable to stockholders of the parent of NT$9,170 million, and basic earnings per share of NT$1.18 for the three months ended March 31, 2023, respectively. The Company also reported total consolidated assets of NT$524,323 million, total consolidated liabilities of NT$123,531 million, and total consolidated equity of NT$400,792 million as of March 31, 2023.

7. Cause of the inconsistency:

The differences between consolidated net income under Taiwan-IFRSs and that under IFRSs followed by the Company mainly come from the timing of the recognition of income tax on unappropriated earnings. In addition, prior to incorporation, the Company was subject to the laws and regulations applicable to state-owned enterprises in Taiwan which differed from the generally accepted accounting principles as applicable to commercial companies. As such, revenue from providing fixed line connection service and selling prepaid phone cards was recognized at the time the service was performed or the card was sold by the Company. Upon incorporation, net assets greater than the capital stock was credited as additional paid-in-capital and part of the additional paid-in-capital was from the unearned revenues generated from connection fees and prepaid cards as of the date of incorporation. Under IFRSs, revenue from connection fees and prepaid phone cards was deferred at the time of the service performed or sale and recognized as revenue over time as the service is continuously performed or as consumed. This reclassification from additional paid-in capital to retained earnings did not affect total equity.

8. Any other matters that need to be specified:

Chunghwa Telecom’s earnings distribution and stockholders’ equity matters are in accordance with Taiwan-IFRSs.

1

EX-99.2

Exhibit 99.2

Chunghwa Telecom Co., Ltd. and Subsidiaries

Consolidated Financial Statements for the

Three Months Ended March 31, 2023 and 2022 and

Independent Auditors’ Review Report

INDEPENDENT AUDITORS’ REVIEW REPORT

The Board of Directors and Stockholders

Chunghwa Telecom Co., Ltd.

Introduction

We have reviewed the accompanying consolidated balance sheets of Chunghwa Telecom Co., Ltd. and its subsidiaries (the “Company”) as of March 31, 2023 and 2022, the related consolidated statements of comprehensive income, changes in equity, and cash flows for the three months then ended, and the related notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as the “consolidated financial statements”). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

We conducted our reviews in accordance with the Standards on Review Engagements of the Republic of China 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our reviews, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Company as of March 31, 2023 and 2022, and of its consolidated financial performance and its consolidated cash flows for the three months then ended March 31, 2023 and 2022 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

- 1 -

The engagement partners on the reviews resulting in this independent auditors’ review report are Yih-Shin Kao and Mei Yen Chiang.

/s/ Yih-Shin Kao /s/ Mei Yen Chiang

Deloitte & Touche

Taipei, Taiwan

Republic of China

May 10, 2023

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ review report and consolidated financial statements shall prevail.

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CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

	March 31, 2023 (Reviewed)				December 31, 2022 (Audited)					March 31, 2022 (Reviewed)
ASSETS	Amount		%		Amount			%		Amount			%
CURRENT ASSETS
Cash and cash equivalents (Note 6)	$	38,715,923		7	$	50,192,604			10	$	46,500,497			9
Financial assets at fair value through profit or loss (Note 7)		4,293		—		3,953			—		3,190			—
Hedging financial assets (Note 20)		1,196		—		12,891			—		8,055			—
Contract assets (Note 29)		6,123,875		1		6,055,343			1		5,539,500			1
Trade notes and accounts receivable, net (Notes 9 and 29)		20,990,008		4		24,672,473			5		21,069,723			4
Receivables from related parties (Note 37)		48,058		—		75,061			—		39,645			—
Inventories (Note 10)		12,024,091		2		11,316,406			2		12,512,537			2
Prepayments (Note 11)		5,484,376		1		2,398,608			—		5,281,217			1
Other current monetary assets (Note 12)		19,980,438		4		3,618,902			1		6,758,881			1
Other current assets (Notes 19 and 38)		3,841,419		1		3,555,423			1		3,352,163			1
Total current assets		107,213,677		20		101,901,664			20		101,065,408			19
NONCURRENT ASSETS
Financial assets at fair value through profit or loss (Note 7)		1,073,777		—		1,020,203			—		805,944			—
Financial assets at fair value through other comprehensive income (Note 8)		4,040,213		1		3,491,381			1		3,574,284			1
Investments accounted for using equity method (Note 14)		7,248,179		1		7,155,851			1		7,463,988			2
Contract assets (Note 29)		3,344,517		1		3,136,801			1		2,756,204			1
Property, plant and equipment (Notes 15, 34, 37 and 38)		289,265,406		56		291,527,910			56		285,930,724			54
Right-of-use assets (Notes 16 and 37)		11,093,820		2		11,102,549			2		10,744,006			2
Investment properties (Note 17)		8,993,035		2		9,803,861			2		9,652,091			2
Intangible assets (Notes 18 and 37)		77,556,614		15		79,187,087			15		82,328,310			16
Deferred income tax assets (Note 3)		2,154,497		—		2,196,645			—		2,760,894			1
Incremental costs of obtaining contracts (Note 29)		954,772		—		979,914			—		967,462			—
Net defined benefit assets (Note 3)		5,429,492		1		5,265,721			1		3,581,626			1
Prepayments (Note 11)		1,695,289		—		1,728,277			—		1,820,461			—
Other noncurrent assets (Notes 19, 38 and 39)		4,472,162		1		4,705,624			1		4,923,591			1
Total noncurrent assets		417,321,773		80		421,301,824			80		417,309,585			81
TOTAL	$	524,535,450		100	$	523,203,488			100	$	518,374,993			100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term loans (Note 21)	$	341,800		—	$	722,000			—	$	65,000			—
Contract liabilities (Note 29)		12,898,161		2		13,390,439			3		12,701,430			3
Trade notes and accounts payable (Note 24)		9,972,835		2		16,428,856			3		11,823,029			2
Payables to related parties (Note 37)		277,579		—		539,194			—		214,092			—
Current tax liabilities (Note 3)		7,245,762		1		4,956,465			1		6,830,152			1
Lease liabilities (Notes 16, 34 and 37)		3,319,259		1		3,338,813			1		2,994,856			1
Other payables (Notes 25 and 34)		21,964,773		5		25,079,960			5		21,665,000			4
Provisions (Note 26)		222,990		—		226,019			—		251,488			—
Other current liabilities		974,018		—		1,016,179			—		1,026,505			—
Total current liabilities		57,217,177		11		65,697,925			13		57,571,552			11
NONCURRENT LIABILITIES
Long-term loans (Notes 22 and 38)		1,600,000		—		1,600,000			—		1,600,000			—
Bonds payable (Note 23)		30,478,739		7		30,477,357			6		30,473,352			6
Contract liabilities (Note 29)		7,665,182		2		7,674,095			2		6,900,647			2
Deferred income tax liabilities (Note 3)		2,336,333		—		2,300,845			—		2,197,088			—
Provisions (Note 26)		464,538		—		173,033			—		141,275			—
Lease liabilities (Notes 16, 34 and 37)		7,243,867		1		7,333,694			2		6,909,109			2
Customers’ deposits (Note 37)		5,012,177		1		5,156,700			1		4,916,202			1
Net defined benefit liabilities (Note 3)		2,266,718		—		2,285,224			—		2,290,631			—
Other noncurrent liabilities		6,759,255		1		6,726,187			1		4,992,300			1
Total noncurrent liabilities		63,826,809		12		63,727,135			12		60,420,604			12
Total liabilities		121,043,986		23		129,425,060			25		117,992,156			23
EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE PARENT (Notes 13 and 28)
Common stocks		77,574,465		15		77,574,465			15		77,574,465			15
Additional paid-in capital		171,309,798		33		171,300,898			32		171,291,613			33
Retained earnings
Legal reserve		77,574,465		15		77,574,465			15		77,574,465			15
Special reserve		3,083,569		1		3,083,569			1		2,675,419			1
Unappropriated earnings		61,521,942		11		51,868,574			10		59,700,126			11
Total retained earnings		142,179,976		27		132,526,608			26		139,950,010			27
Others		266,822		—		(223,084	)		—		(362,831	)		—
Total equity attributable to stockholders of the parent		391,331,061		75		381,178,887			73		388,453,257			75
NONCONTROLLING INTERESTS (Notes 13 and 28)		12,160,403		2		12,599,541			2		11,929,580			2
Total equity		403,491,464		77		393,778,428			75		400,382,837			77
TOTAL	$	524,535,450		100	$	523,203,488			100	$	518,374,993			100

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

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CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

(Reviewed, Not Audited)

	Three Months Ended March 31
	2023					2022
	Amount			%		Amount			%
REVENUES (Notes 29, 37 and 43)	$	54,210,905			100	$	51,294,739			100
OPERATING COSTS (Notes 10, 27, 30 and 37)		33,629,816			62		31,690,894			62
GROSS PROFIT		20,581,089			38		19,603,845			38
OPERATING EXPENSES (Notes 9, 27, 30 and 37)
Marketing		5,671,750			11		5,445,221			11
General and administrative		1,657,125			3		1,547,548			2
Research and development		978,038			2		848,452			2
Expected credit loss		100,368			—		101,386			—
Total operating expenses		8,407,281			16		7,942,607			15
OTHER INCOME AND EXPENSES (Note 30)		(44	)		—		(1,357	)		—
INCOME FROM OPERATIONS		12,173,764			22		11,659,881			23
NON-OPERATING INCOME AND EXPENSES
Interest income		117,711			—		24,398			—
Other income (Notes 30 and 37)		44,786			—		44,383			—
Other gains and losses (Notes 30, 36 and 37)		(103,964	)		—		(108,326	)		—
Interest expense (Notes 16, 30 and 37)		(75,412	)		—		(56,012	)		—
Share of profits of associates and joint ventures accounted for using equity method (Note 14)		103,108			—		110,069			—
Total non-operating income and expenses		86,229			—		14,512			—
INCOME BEFORE INCOME TAX		12,259,993			22		11,674,393			23
INCOME TAX EXPENSE (Notes 3 and 31)		2,386,947			4		2,283,416			5
NET INCOME		9,873,046			18		9,390,977			18
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)
Items that will not be reclassified to profit or loss:
Unrealized gain or loss on investments in equity instruments at fair value through other comprehensive income (Notes 28 and 36)		548,832			1		(44,560	)		—

(Continued)

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CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

(Reviewed, Not Audited)

	Three Months Ended March 31
	2023					2022
	Amount			%		Amount			%
Gain or loss on hedging instruments subject to basis adjustment (Note 20)	$	(11,695	)		—	$	16,341			—
Share of other comprehensive income of associates and joint ventures (Note 14)		10,113			—		1,524			—
		547,250			1		(26,695	)		—
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising from the translation of the foreign operations		(47,223	)		—		77,050			—
Share of other comprehensive loss of associates and joint ventures (Note 14)		(820	)		—		(194	)		—
		(48,043	)		—		76,856			—
Total other comprehensive income, net of income tax		499,207			1		50,161			—
TOTAL COMPREHENSIVE INCOME	$	10,372,253			19	$	9,441,138			18
NET INCOME ATTRIBUTABLE TO
Stockholders of the parent	$	9,643,255			18	$	9,059,580			18
Noncontrolling interests		229,791			—		331,397			—
	$	9,873,046			18	$	9,390,977			18
COMPREHENSIVE INCOME ATTRIBUTABLE TO
Stockholders of the parent	$	10,143,274			19	$	9,106,423			18
Noncontrolling interests		228,979			—		334,715			—
	$	10,372,253			19	$	9,441,138			18
EARNINGS PER SHARE (Note 32)
Basic	$	1.24				$	1.17
Diluted	$	1.24				$	1.17

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

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CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

(Reviewed, Not Audited)

	Equity Attributable to Stockholders of the Parent (Notes 13, 20 and 28)
												Others
															Unrealized Gain or Loss on Financial Assets at Fair Value Through Other Comprehensive Income
												Exchange Differences Arising from the Translation of the Foreign Operations
						Retained Earnings												Gain or Loss on Hedging Instruments						Noncontrolling Interests (Notes 13 and 28)
	Common Stocks		Additional Paid-in Capital			Legal Reserve		Special Reserve		Unappropriated Earnings											Total						Total Equity
BALANCE, JANUARY 1, 2022	$	77,574,465	$	171,279,625		$	77,574,465	$	2,675,419	$	50,639,022	$	(392,276	)	$	(7,588	)	$	(8,286	)	$	379,334,846		$	11,927,604		$	391,262,450
Cash dividends by subsidiaries		—		—			—		—		—		—			—			—			—			(370,957	)		(370,957	)
Change in additional paid-in capital from investments in associates and joint ventures accounted for using equity method		—		(1,159	)		—		—		—		—			—			—			(1,159	)		(51	)		(1,210	)
Net income for the three months ended March 31, 2022		—		—			—		—		9,059,580		—			—			—			9,059,580			331,397			9,390,977
Other comprehensive income (loss) for the three months ended March 31, 2022		—		—			—		—		1,524		66,473			(37,495	)		16,341			46,843			3,318			50,161
Total comprehensive income (loss) for the three months ended March 31, 2022		—		—			—		—		9,061,104		66,473			(37,495	)		16,341			9,106,423			334,715			9,441,138
Share-based payment transactions of subsidiaries		—		13,147			—		—		—		—			—			—			13,147			38,269			51,416
BALANCE, MARCH 31, 2022	$	77,574,465	$	171,291,613		$	77,574,465	$	2,675,419	$	59,700,126	$	(325,803	)	$	(45,083	)	$	8,055		$	388,453,257		$	11,929,580		$	400,382,837
BALANCE, JANUARY 1, 2023	$	77,574,465	$	171,300,898		$	77,574,465	$	3,083,569	$	51,868,574	$	(111,213	)	$	(124,762	)	$	12,891		$	381,178,887		$	12,599,541		$	393,778,428
Cash dividends by subsidiaries		—		—			—		—		—		—			—			—			—			(676,862	)		(676,862	)
Net income for the three months ended March 31, 2023		—		—			—		—		9,643,255		—			—			—			9,643,255			229,791			9,873,046
Other comprehensive income (loss) for the three months ended March 31, 2023		—		—			—		—		10,113		(44,875	)		546,476			(11,695	)		500,019			(812	)		499,207
Total comprehensive income (loss) for the three months ended March 31, 2023		—		—			—		—		9,653,368		(44,875	)		546,476			(11,695	)		10,143,274			228,979			10,372,253
Share-based payment transactions of subsidiaries		—		8,900			—		—		—		—			—			—			8,900			(6,428	)		2,472
Net increase in noncontrolling interests		—		—			—		—		—		—			—			—			—			15,173			15,173
BALANCE, MARCH 31, 2023	$	77,574,465	$	171,309,798		$	77,574,465	$	3,083,569	$	61,521,942	$	(156,088	)	$	421,714		$	1,196		$	391,331,061		$	12,160,403		$	403,491,464

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

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CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

(Reviewed, Not Audited)

	Three Months Ended March 31
	2023			2022
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$	12,259,993		$	11,674,393
Adjustments for:
Depreciation		8,203,942			8,051,310
Amortization		1,677,506			1,634,584
Amortization of incremental costs of obtaining contracts		214,202			210,872
Expected credit loss		100,368			101,386
Interest expense		75,412			56,012
Interest income		(117,711	)		(24,398	)
Compensation cost of share-based payment transactions		2,472			4,003
Share of profits of associates and joint ventures accounted for using equity method		(103,108	)		(110,069	)
Loss on disposal of property, plant and equipment		44			1,357
Gain on disposal of financial instruments		—			(728	)
Provision for impairment loss and obsolescence of inventory		5,274			40,452
Valuation loss on financial assets and liabilities at fair value through profit or loss, net		46,086			94,077
Others		8,671			89,100
Changes in operating assets and liabilities:
Decrease (increase) in:
Contract assets		(277,030	)		(134,298	)
Trade notes and accounts receivable		3,585,668			2,794,654
Receivables from related parties		27,003			1,883
Inventories		(712,959	)		(1,225,580	)
Prepayments		(3,052,780	)		(2,973,118	)
Other current monetary assets		(502,578	)		92,957
Other current assets		(285,996	)		(373,383	)
Incremental cost of obtaining contracts		(189,060	)		(190,678	)
Increase (decrease) in:
Contract liabilities		(501,191	)		527,745
Trade notes and accounts payable		(6,455,842	)		(6,236,259	)
Payables to related parties		(261,615	)		(177,266	)
Other payables		(2,536,258	)		(1,891,622	)
Provisions		288,476			(33,915	)
Other current liabilities		(33,209	)		36,050
Net defined benefit plans		(182,277	)		(187,581	)
Cash generated from operations		11,283,503			11,851,940
Interests paid		(57,461	)		(20,329	)
Income taxes paid		(20,014	)		(14,933	)
Net cash provided by operating activities		11,206,028			11,816,678

(Continued)

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CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

(Reviewed, Not Audited)

	Three Months Ended March 31
	2023			2022
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through other comprehensive income	$	—		$	(2,956	)
Acquisition of financial assets at fair value through profit or loss		(100,000	)		(6,002	)
Proceeds from disposal of financial assets at fair value through profit or loss		—			8,680
Proceeds from capital reduction of financial assets at fair value through profit or loss		—			44,400
Acquisition of time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months		(16,105,875	)		(2,707,812	)
Proceeds from disposal of time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months		261,404			878,813
Acquisition of investments accounted for using equity method		—			(20,000	)
Acquisition of property, plant and equipment		(5,418,138	)		(5,227,651	)
Proceeds from disposal of property, plant and equipment		3,469			2,128
Acquisition of intangible assets		(46,118	)		(17,472	)
Decrease (increase) in other noncurrent assets		211,373			(59,864	)
Interests received		99,089			23,375
Net cash used in investing activities		(21,094,796	)		(7,084,361	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term loans		855,800			13,000
Repayments of short-term loans		(1,236,000	)		(13,000	)
Proceeds from issuance of bonds		—			3,500,000
Payments for transaction costs attributable to the issuance of bonds		—			(4,463	)
Decrease in customers’ deposits		(153,475	)		(428,053	)
Payments for the principal of lease liabilities		(1,090,899	)		(1,057,594	)
Increase (decrease) in other noncurrent liabilities		33,068			(89,610	)
Cash dividends distributed to noncontrolling interests		(5,639	)		—
Change in other noncontrolling interests		15,173			47,413
Net cash provided by (used in) financing activities		(1,581,972	)		1,967,693
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		(5,941	)		21,863
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(11,476,681	)		6,721,873
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		50,192,604			39,778,624
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	38,715,923		$	46,500,497

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

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CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

THREE MONTHS ENDED MARCH 31, 2023 AND 2022

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

(Reviewed, Not Audited)

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.

Chunghwa launched its organizational transformation based on customer-centric structure effective from January 2022. Please refer to Note 43 Segment Information for details.

The consolidated financial statements are presented in Chunghwa’s functional currency, New Taiwan dollars.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Board of Directors on May 10, 2023.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Except for the following items, the accounting policies applied in these consolidated financial statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2022. Please refer to the consolidated financial statements for the year ended December 31, 2022 for the details.

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Statement of Compliance

The accompanying consolidated financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission (the “FSC”). The consolidated financial statements do not present all the disclosures required for a complete set of annual consolidated financial statements as required by International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), International Financial Reporting Interpretations Committee (IFRIC) and SIC Interpretations (SIC) (collectively, the “IFRSs”) endorsed and issued into effect by the FSC.

Basis of Consolidation

The detail information of the subsidiaries at the end of reporting period was as follows:

			Percentage of Ownership Interests
Name of Investor	Name of Investee	Main Businesses and Products	March 31, 2023	December 31, 2022	March 31, 2022	Note
Chunghwa Telecom Co., Ltd.	Senao International Co., Ltd. (“SENAO”)	Handset and peripherals retailer, sales of CHT mobile phone plans as an agent	28	28	28	a.
	Light Era Development Co., Ltd. (“LED”)	Planning and development of real estate and intelligent buildings, and property management	100	100	100
	Donghwa Telecom Co., Ltd. (“DHT”)	International private leased circuit, IP VPN service, and IP transit services	100	100	100
	Chunghwa Telecom Singapore Pte., Ltd. (“CHTS”)	International private leased circuit, IP VPN service, and IP transit services	100	100	100
	Chunghwa System Integration Co., Ltd. (“CHSI”)	Providing system integration services and telecommunications equipment	100	100	100
	Chunghwa Investment Co., Ltd. (“CHI”)	Investment	89	89	89
	CHIEF Telecom Inc. (“CHIEF”)	Network integration, internet data center (“IDC”), communications integration and cloud application services	56	56	56	b.
	CHYP Multimedia Marketing & Communications Co., Ltd. (“CHYP”)	Digital information supply services and advertisement services	100	100	100
	Prime Asia Investments Group Ltd. (“Prime Asia”)	Investment	100	100	100
	Spring House Entertainment Tech. Inc. (“SHE”)	Software design services, internet contents production and play, and motion picture production and distribution	56	56	56
	Chunghwa Telecom Global, Inc. (“CHTG”)	International private leased circuit, internet services, and transit services	100	100	100
	Chunghwa Telecom Vietnam Co., Ltd. (“CHTV”)	Intelligent energy saving solutions, international circuit, and information and communication technology (“ICT”) services.	100	100	100
	Smartfun Digital Co., Ltd. (“SFD”)	Providing diversified family education digital services	65	65	65
	Chunghwa Telecom Japan Co., Ltd. (“CHTJ”)	International private leased circuit, IP VPN service, and IP transit services	100	100	100
	Chunghwa Sochamp Technology Inc. (“CHST”)	Design, development and production of Automatic License Plate Recognition software and hardware	37	37	51	c.

(Continued)

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			Percentage of Ownership Interests
Name of Investor	Name of Investee	Main Businesses and Products	March 31, 2023	December 31, 2022	March 31, 2022	Note
	Honghwa International Co., Ltd. (“HHI”)	Telecommunications engineering, sales agent of mobile phone plan application and other business services, etc.	100	100	100
	Chunghwa Leading Photonics Tech Co., Ltd. (“CLPT”)	Production and sale of electronic components and finished products	75	75	75
	Chunghwa Telecom (Thailand) Co., Ltd. (“CHTT”)	International private leased circuit, IP VPN service, ICT and cloud VAS services	100	100	100
	CHT Security Co., Ltd. (“CHTSC”)	Computing equipment installation, wholesale of computing and business machinery equipment and software, management consulting services, data processing services, digital information supply services and internet identity services	71	73	75	d.
	International Integrated Systems, Inc. (“IISI”)	IT solution provider, IT application consultation, system integration and package solution	51	51	51
Senao International Co., Ltd.	Senao International (Samoa) Holding Ltd. (“SIS”)	International investment	100	100	100	e.
	Youth Co., Ltd. (“Youth”)	Sale of information and communication technologies products	96	96	96
	Aval Technologies Co., Ltd. (“Aval”)	Sale of information and communication technologies products	100	100	100
	Senyoung Insurance Agent Co., Ltd. (“SENYOUNG”)	Property and liability insurance agency	100	100	100
Youth Co., Ltd.	ISPOT Co., Ltd. (“ISPOT”)	Sale of information and communication technologies products	100	100	100
	Youyi Co., Ltd. (“Youyi”)	Maintenance of information and communication technologies products	100	100	100
Aval Technologies Co., Ltd.	Wiin Technology Co., Ltd. (“Wiin”)	Sale of information and communication technologies products	100	100	100
Senyoung Insurance Agent Co., Ltd.	Senaolife Insurance Agent Co., Ltd. (“Senaolife”)	Life insurance services	100	100	100	f.
CHIEF Telecom Inc.	Unigate Telecom Inc. (“Unigate”)	Telecommunications and internet service	100	100	100
	Chief International Corp. (“CIC”)	Telecommunications and internet service	100	100	100
	Shanghai Chief Telecom Co., Ltd. (“SCT”)	Telecommunications and internet service	49	49	49	g.
Chunghwa Investment Co., Ltd.	Chunghwa Precision Test Tech. Co., Ltd. (“CHPT”)	Production and sale of semiconductor testing components and printed circuit board	34	34	34	h.
Chunghwa Precision Test Tech. Co., Ltd.	Chunghwa Precision Test Tech. USA Corporation (“CHPT (US)”)	Design and after-sale services of semiconductor testing components and printed circuit board	100	100	100
	CHPT Japan Co., Ltd. (“CHPT (JP)”)	Related services of electronic parts, machinery processed products and printed circuit board	100	100	100

(Continued)

- 11 -

			Percentage of Ownership Interests
Name of Investor	Name of Investee	Main Businesses and Products	March 31, 2023	December 31, 2022	March 31, 2022	Note
	Chunghwa Precision Test Tech. International, Ltd. (“CHPT (International)”)	Wholesale and retail of electronic materials, and investment	100	100	100
	TestPro Investment Co., Ltd. (“TestPro”)	Investment	100	100	100	i.
TestPro Investment Co., Ltd. (“TestPro”)	NavCore Tech. Co., Ltd (“NavCore”)	Sale and manufacturing of smart equipment, smart factory software and hardware integration and technical consulting service	54	54	—	j.
Senao International (Samoa) Holding Ltd.	Senao International HK Limited (“SIHK”)	International investment	100	100	100	k.
Prime Asia Investments Group Ltd.	Chunghwa Hsingta Co., Ltd. (“CHC”)	Investment	100	100	100
Chunghwa Hsingta Co., Ltd.	Chunghwa Telecom (China) Co., Ltd. (“CTC”)	Integrated information and communication solution services for enterprise clients, and intelligent energy network service	—	—	100	l.
Chunghwa Precision Test Tech. International, Ltd.	Shanghai Taihua Electronic Technology Limited (“STET”)	Design of printed circuit board and related consultation service	100	100	100
	Su Zhou Precision Test Tech. Ltd. (“SZPT”)	Assembly processed of circuit board, design of printed circuit board and related consultation service	100	100	100
International Integrated Systems, Inc.	Infoexplorer International Co., Ltd.(“IESA”)	Investment	100	100	100	m.
	IISI Investment Co., Ltd. (“IICL”)	Investment	—	—	100	n.
	Unitronics Technology Corp. (“UTC”)	Development and maintenance of information system	99.96	99.96	99.96
Infoexplorer International Co., Ltd.	International Integrated Systems (Hong Kong) Limited (“IEHK”)	Investment and technical consulting service	100	100	100	m.
IISI Investment Co., Ltd.	Leading Tech Co., Ltd. (“LTCL”)	Investment	—	—	100	n.
Leading Tech Co., Ltd.	Leading Systems Co., Ltd. (“LSCL”)	Investment	—	—	100	n.

(Concluded)

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

b. CHIEF issued new shares in March 2022 and December 2022 as its employees exercised options. Therefore, the Company’s ownership interest in CHIEF decreased to 58.72%, 58.67% and 58.67% as of March 31, 2022, December 31, 2022 and March 31, 2023, respectively.

c. Chunghwa did not participate in the capital increase of CHST in November 2022. Therefore, the Company’s ownership interest in CHST decreased to 37.09%. However, Chunghwa continues to control three out of five seats of the Board of Directors of CHST. As a result, the Company treated CHST as a subsidiary.

d. CHTSC issued new shares in February 2022, May 2022 and February 2023 as its employees exercised options. Therefore, the Company’s ownership interest in CHTSC decreased to 74.92%, 73.09% and 70.91% as of March 31, 2022, December 31, 2022 and March 31, 2023, respectively.

- 12 -

e. SIS reduced 96.26% of its capital to offset accumulated deficits in November 2022. The Company’s ownership interest in SIS remained the same.

f. In order to coordinate with financial planning and adjustment of organizational resources, the Board of Directors of SENYOUNG approved the merger with Senaolife. Senaolife will be the dissolved company. In January 2023, the Board of Directors of SENYOUNG approved the merger completion date as March 1, 2023. However, due to the ongoing progress of the merger, the merger completion date has been rescheduled to May 1, 2023.

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

h. 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.

i. CHPT invested and established TestPro in March 2022. CHPT obtained 100% ownership interest of TestPro.

j. TestPro invested and established NavCore in May 2022. TestPro obtained 54.25% ownership interest of NavCore.

k. SIHK was approved to end and dissolve its business in August 2022. The liquidation of SIHK is still in process.

l. CTC completed its liquidation in October 2022.

m. The Board of Directors of IISI approved to end and dissolve the business of IESA and IEHK. The liquidation of IESA and IEHK is still in process.

n. IICL, LTCL and LSCL completed the cancellation of registration in September 2022.

The following diagram presented information regarding the relationship and percentages of ownership interests between Chunghwa and its subsidiaries as of March 31, 2023.

- 13 -

Other Significant Accounting Policies

a. Defined benefit retirement benefits

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted for significant market fluctuations since that time and for other significant one-off events.

b. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax. Income taxes for interim period are assessed on an annual basis and calculated by applying to an interim period’s pre-tax income the tax rate that would be applicable to expected total annual earnings.

The measurement of deferred tax assets and liabilities reflects the tax consequences that would follow from the manner in which the Company expects to recover or settle the carrying amount of its assets and liabilities at balance sheet date.

4. CRITICAL 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. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

For the critical accounting judgments and key sources of estimation, uncertainty and assumption applied in these consolidated financial statements, please refer to the consolidated financial statements for the year ended December 31, 2022.

5. APPLICATION OF NEW AND REVISED STANDARDS AND INTERPRETATIONS

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

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

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

New, Revised or Amended Standards and Interpretations		Effective Date Announced by IASB (Note 1)
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
Amendments to IFRS 16	Leases Liability in a Sale and Leaseback	January 1, 2024 (Note 2)
Amendments to IAS 1	Classification of Liabilities as Current or Non-current	January 1, 2024
Amendments to IAS 1	Non-current Liabilities with Covenants	January 1, 2024

- 14 -

Note 1: Unless stated otherwise, the above new IFRSs are effective for annual periods beginning on or after their respective effective dates.

Note 2: A seller-lessee shall apply the Amendments to IFRS 16 retrospectively to sale and leaseback transactions entered into after the date of initial application of IFRS 16.

As of the date the consolidated financial statements were authorized for issue, the Company is continuously assessing the possible impact that the application of above standards and interpretations will have on the Company’s financial position and operating result and will disclose the relevant impact when the assessment is completed.

6. CASH AND CASH EQUIVALENTS

	March 31, 2023		December 31, 2022		March 31, 2022
Cash
Cash on hand	$	392,266	$	471,751	$	315,194
Bank deposits		9,970,391		10,423,195		12,639,031
		10,362,657		10,894,946		12,954,225
Cash equivalents (with maturities of less than three months)
Commercial papers		17,123,316		19,592,233		15,639,346
Negotiable certificates of deposit		6,800,000		15,500,000		15,000,000
Time deposits		4,429,950		4,205,425		2,905,535
Stimulus vouchers		—		—		1,391
		28,353,266		39,297,658		33,546,272
	$	38,715,923	$	50,192,604	$	46,500,497

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

	March 31, 2023	December 31, 2022	March 31, 2022
Bank deposits	0.00%~2.87%	0.00%~2.62%	0.00%~0.45%
Commercial papers	0.60%~1.30%	0.56%~1.30%	0.24%~0.47%
Negotiable certificates of deposit	1.21%~1.35%	1.20%~1.45%	0.30%~0.47%
Time deposits	0.01%~4.48%	0.01%~4.65%	0.01%~1.48%

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

	March 31, 2023		December 31, 2022		March 31, 2022
Financial assets-current
Mandatorily measured at FVTPL
Derivatives (not designated for hedge)
Forward exchange contracts	$	3,851	$	3,514	$	2,738
Non-derivatives
Listed stocks - domestic		442		439		452
	$	4,293	$	3,953	$	3,190

(Continued)

- 15 -

	March 31, 2023		December 31, 2022		March 31, 2022
Financial assets-noncurrent
Mandatorily measured at FVTPL
Non-derivatives
Non-listed stocks - domestic	$	724,596	$	758,312	$	618,472
Non-listed stocks - foreign		97,677		102,648		165,021
Limited partnership - domestic		228,149		135,121		22,451
Film and drama investing agreement		23,355		24,122		—
	$	1,073,777	$	1,020,203	$	805,944

(Concluded)

Chunghwa’s Board of Directors approved an investment in Taiwania Capital Buffalo Fund VI, L.P. at the amount of $600,000 thousand in January 2022. As of March 31, 2023, Chunghwa invested $200,000 thousand.

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

	Currency		Maturity Period		Contract Amount (In Thousands)
March 31, 2023
Forward exchange contracts - buy		NT$/EUR		2023.06		NT$230,438/EUR7,100
December 31, 2022
Forward exchange contracts - buy		NT$/EUR		2023.03		NT$61,746/EUR2,000
March 31, 2022
Forward exchange contracts - buy		NT$/EUR		2022.06		NT$173,035/EUR5,500

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

- 16 -

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

	March 31, 2023		December 31, 2022		March 31, 2022
Domestic investments
Listed stocks	$	292,006	$	272,802	$	366,443
Non-listed stocks		3,590,949		3,084,670		3,079,631
Foreign investments
Non-listed stocks		157,258		133,909		128,210
	$	4,040,213	$	3,491,381	$	3,574,284

The Company holds the above foreign and domestic stocks for medium to long-term strategic purposes and expects to profit from long-term investment. Accordingly, the management elected to designate these investments in equity instruments at FVOCI as they believe that recognizing short-term fair value fluctuations of these investments in profit or loss is not consistent with the Company’s strategy of holding these investments for long-term purposes.

9. TRADE NOTES AND ACCOUNTS RECEIVABLE, NET

	March 31, 2023			December 31, 2022			March 31, 2022
Trade notes and accounts receivable	$	22,190,404		$	26,037,695		$	22,526,866
Less: Loss allowance		(1,200,396	)		(1,365,222	)		(1,457,143	)
	$	20,990,008		$	24,672,473		$	21,069,723

The main credit terms range from 30 to 90 days.

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

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

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

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

- 17 -

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 limited. Therefore, only Chunghwa’s provision matrix arising from telecommunications business and project business is disclosed below:

March 31, 2023

	Not Past Due			Past Due Less than 30 Days			Pass Due 31 to 60 Days			Pass Due 61 to 90 Days			Pass Due 91 to 120 Days			Pass Due 121 to 180 Days			Pass Due over 180 Days			Total
Telecommunications business
Expected credit loss rate (Note a)		0%~1%			1%~21%			3%~64%			11%~81%			24%~90%			48%~96%			100%
Gross carrying amount	$	15,877,741		$	360,047		$	161,855		$	130,047		$	48,799		$	37,404		$	609,373		$	17,225,266
Loss allowance (lifetime ECL)		(58,227	)		(44,535	)		(53,277	)		(22,667	)		(22,249	)		(33,722	)		(609,373	)		(844,050	)
Amortized cost	$	15,819,514		$	315,512		$	108,578		$	107,380		$	26,550		$	3,682		$	—		$	16,381,216
Project business
Expected credit loss rate (Note b)		0%~5%			5%			10%			30%			50%			80%			100%
Gross carrying amount	$	2,205,320		$	49,109		$	29,021		$	19,307		$	696		$	623		$	313,122		$	2,617,198
Loss allowance (lifetime ECL)		(2,026	)		(3,165	)		(2,902	)		(6,414	)		(348	)		(499	)		(313,122	)		(328,476	)
Amortized cost	$	2,203,294		$	45,944		$	26,119		$	12,893		$	348		$	124		$	—		$	2,288,722

December 31, 2022

	Not Past Due			Past Due Less than 30 Days			Pass Due 31 to 60 Days			Pass Due 61 to 90 Days			Pass Due 91 to 120 Days			Pass Due 121 to 180 Days			Pass Due over 180 Days			Total
Telecommunications business
Expected credit loss rate (Note a)		0%~1%			1%~20%			3%~64%			11%~80%			25%~90%			45%~96%			100%
Gross carrying amount	$	17,162,634		$	310,392		$	86,500		$	32,826		$	27,774		$	34,127		$	599,316		$	18,253,569
Loss allowance (lifetime ECL)		(49,644	)		(22,309	)		(19,806	)		(20,927	)		(20,085	)		(29,244	)		(599,316	)		(761,331	)
Amortized cost	$	17,112,990		$	288,083		$	66,694		$	11,899		$	7,689		$	4,883		$	—		$	17,492,238
Project business
Expected credit loss rate (Note b)		0%~5%			5%			10%			30%			50%			80%			100%
Gross carrying amount	$	3,797,905		$	119,329		$	11,424		$	53,189		$	1,360		$	785		$	547,269		$	4,531,261
Loss allowance (lifetime ECL)		(2,604	)		(6,138	)		(1,142	)		(15,986	)		(680	)		(628	)		(547,269	)		(574,447	)
Amortized cost	$	3,795,301		$	113,191		$	10,282		$	37,203		$	680		$	157		$	—		$	3,956,814

March 31, 2022

	Not Past Due			Past Due Less than 30 Days			Pass Due 31 to 60 Days			Pass Due 61 to 90 Days			Pass Due 91 to 120 Days			Pass Due 121 to 180 Days			Pass Due over 180 Days			Total
Telecommunications business
Expected credit loss rate (Note a)		0%~1%			1%~21%			3%~60%			10%~78%			23%~89%			48%~96%			100%
Gross carrying amount	$	15,695,361		$	307,656		$	102,985		$	40,670		$	29,179		$	29,192		$	605,564		$	16,810,607
Loss allowance (lifetime ECL)		(50,967	)		(46,549	)		(21,000	)		(20,768	)		(23,508	)		(26,964	)		(605,564	)		(795,320	)
Amortized cost	$	15,644,394		$	261,107		$	81,985		$	19,902		$	5,671		$	2,228		$	—		$	16,015,287

(Continued)

- 18 -

	Not Past Due			Past Due Less than 30 Days			Pass Due 31 to 60 Days			Pass Due 61 to 90 Days			Pass Due 91 to 120 Days			Pass Due 121 to 180 Days			Pass Due over 180 Days			Total
Project business
Expected credit loss rate (Note b)		0%~5%			5%			10%			30%			50%			80%			100%
Gross carrying amount	$	1,919,824		$	26,885		$	22,284		$	143,256		$	293		$	223		$	579,337		$	2,692,102
Loss allowance (lifetime ECL)		(2,520	)		(1,698	)		(5,340	)		(42,977	)		(151	)		(200	)		(579,337	)		(632,223	)
Amortized cost	$	1,917,304		$	25,187		$	16,944		$	100,279		$	142		$	23		$	—		$	2,059,879

(Concluded)

Note a: Please refer to Note 43 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:

	Three Months Ended March 31
	2023			2022
Beginning balance	$	1,365,222		$	1,604,835
Add: Provision for credit loss		100,286			86,521
Less: Amounts written off		(265,112	)		(234,213	)
Ending balance	$	1,200,396		$	1,457,143

10. INVENTORIES

	March 31, 2023		December 31, 2022		March 31, 2022
Merchandise	$	4,662,019	$	3,977,853	$	4,292,665
Project in process		4,906,945		4,859,226		5,705,341
Work in process		86,418		98,712		164,914
Raw materials		266,899		279,022		263,359
		9,922,281		9,214,813		10,426,279
Land held under development		1,998,733		1,998,733		1,998,733
Construction in progress		103,077		102,860		87,525
	$	12,024,091	$	11,316,406	$	12,512,537

The operating costs related to inventories were $12,500,866 thousand (including the valuation loss on inventories of $5,274 thousand) and $11,500,100 thousand (including the valuation loss on inventories of $40,452 thousand) for the three months ended March 31, 2023 and 2022, respectively.

As of March 31, 2023, December 31, 2022 and March 31, 2022, inventories of $2,101,810 thousand, $2,101,593 thousand and $2,086,258 thousand, respectively, were expected to be recovered after more than twelve months. The aforementioned amount of inventories is related to property development owned by LED.

- 19 -

Land held under development and construction in progress was mainly developed by LED for Qingshan Sec., Dayuan Dist., Taoyuan City project. The Board of Directors of LED resolved to sign a joint construction and separate sale contract with Farglory Land Development Co., Ltd. in June 2021. LED entrusts Land Bank of Taiwan to execute fund control and property right management for the land held under development.

11. PREPAYMENTS

	March 31, 2023		December 31, 2022		March 31, 2022
Prepaid salary and bonus	$	2,860,982	$	4,159	$	2,898,477
Prepaid rents		2,261,838		2,316,088		2,383,155
Others		2,056,845		1,806,638		1,820,046
	$	7,179,665	$	4,126,885	$	7,101,678
Current
Prepaid salary and bonus	$	2,860,982	$	4,159	$	2,898,477
Prepaid rents		568,372		589,506		576,577
Others		2,055,022		1,804,943		1,806,163
	$	5,484,376	$	2,398,608	$	5,281,217
Noncurrent
Prepaid rents	$	1,693,466	$	1,726,582	$	1,806,578
Others		1,823		1,695		13,883
	$	1,695,289	$	1,728,277	$	1,820,461

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

12. OTHER CURRENT MONETARY ASSETS

	March 31, 2023		December 31, 2022		March 31, 2022
Time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months	$	17,755,151	$	1,915,755	$	5,348,049
Accrued custodial receipts		781,871		815,547		748,544
Others		1,443,416		887,600		662,288
	$	19,980,438	$	3,618,902	$	6,758,881

- 20 -

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:

	March 31, 2023		December 31, 2022		March 31, 2022
Time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months		0.03%~4.36%		0.03%~3.00%		0.03%~2.70%

13. SUBSIDIARIES

a. Information on subsidiaries with material noncontrolling interests

	Principal		Proportion of Ownership Interests and Voting Rights Held by Noncontrolling Interests
Subsidiaries	Place of Business		March 31, 2023			December 31, 2022			March 31, 2022
SENAO		Taiwan		72	%		72	%		72	%
CHPT		Taiwan		66	%		66	%		66	%

	Profit Allocated to Noncontrolling Interests					Accumulated Noncontrolling Interests
	Three Months Ended March 31					March 31,		December 31,		March 31,
	2023			2022		2023		2022		2022
SENAO	$	141,198		$	130,080	$	4,322,953	$	4,592,326	$	4,227,052
CHPT	$	(26,832	)	$	73,917		5,230,536		5,259,231		5,040,697
Individually immaterial subsidiaries with noncontrolling interests							2,606,914		2,747,984		2,661,831
						$	12,160,403	$	12,599,541	$	11,929,580

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.

	March 31, 2023			December 31, 2022			March 31, 2022
Current assets	$	6,709,874		$	7,249,222		$	7,560,573
Noncurrent assets		3,305,221			3,211,081			3,246,500
Current liabilities		(3,597,049	)		(3,680,470	)		(4,566,584	)
Noncurrent liabilities		(470,758	)		(459,666	)		(429,533	)
Equity	$	5,947,288		$	6,320,167		$	5,810,956
Equity attributable to the parent	$	1,624,335		$	1,727,841		$	1,583,904
Equity attributable to noncontrolling interests		4,322,953			4,592,326			4,227,052
	$	5,947,288		$	6,320,167		$	5,810,956

- 21 -

	Three Months Ended March 31
	2023			2022
Revenues and income	$	8,316,887		$	8,170,902
Costs and expenses		8,120,208			7,989,690
Profit for the period	$	196,679		$	181,212
Profit attributable to the parent	$	55,481		$	51,132
Profit attributable to noncontrolling interests		141,198			130,080
Profit for the period	$	196,679		$	181,212
Other comprehensive income attributable to the parent	$	(395	)	$	874
Other comprehensive income (loss) attributable to noncontrolling interests		(1,007	)		2,342
Other comprehensive income for the period	$	(1,402	)	$	3,216
Total comprehensive income attributable to the parent	$	55,086		$	52,006
Total comprehensive income attributable to noncontrolling interests		140,191			132,422
Total comprehensive income for the period	$	195,277		$	184,428
Net cash flow from operating activities	$	(511,454	)	$	(710,738	)
Net cash flow from investing activities		(9,715	)		(14,170	)
Net cash flow from financing activities		(76,457	)		(77,414	)
Effect of exchange rate changes on cash and cash equivalents		2			176
Net cash outflow	$	(597,624	)	$	(802,146	)

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.

	March 31, 2023			December 31, 2022			March 31, 2022
Current assets	$	4,023,108		$	4,406,032		$	4,641,005
Noncurrent assets		4,611,346			4,630,788			4,076,157
Current liabilities		(689,858	)		(1,051,544	)		(1,020,733	)
Noncurrent liabilities		(22,745	)		(25,975	)		(29,970	)
Equity	$	7,921,851		$	7,959,301		$	7,666,459
Equity attributable to CHI	$	2,691,315		$	2,700,070		$	2,625,762
Equity attributable to noncontrolling interests		5,230,536			5,259,231			5,040,697
	$	7,921,851		$	7,959,301		$	7,666,459

- 22 -

	Three Months Ended March 31
	2023			2022
Revenues and income	$	706,859		$	846,318
Costs and expenses		744,236			733,896
Profit for the period	$	(37,377	)	$	112,422
Profit (loss) attributable to CHI	$	(10,545	)	$	38,505
Profit (loss) attributable to noncontrolling interests		(26,832	)		73,917
Profit (loss) for the period	$	(37,377	)	$	112,422
Other comprehensive income (loss) attributable to CHI	$	(25	)	$	3,022
Other comprehensive income (loss) attributable to noncontrolling interests		(48	)		5,803
Other comprehensive income (loss) for the period	$	(73	)	$	8,825
Total comprehensive income (loss) attributable to CHI	$	(10,570	)	$	41,527
Total comprehensive income (loss) attributable to noncontrolling interests		(26,880	)		79,720
Total comprehensive income for the period	$	(37,450	)	$	121,247
Net cash flow from operating activities	$	58,721		$	293,306
Net cash flow from investing activities		(92,752	)		(115,488	)
Net cash flow from financing activities		(5,490	)		(5,829	)
Effect of exchange rate changes on cash and cash equivalents		2,021			11,863
Net cash inflow (outflow)	$	(37,500	)	$	183,852

b. Equity transactions with noncontrolling interests

CHIEF issued new shares in March 2022 and December 2022 as its employees exercised options. Therefore, the Company’s ownership interest in CHIEF decreased. See Note 33(a) for details.

CHTSC issued new shares in February 2022, May 2022 and February 2023 as its employees exercised options. Therefore, the Company’s ownership interest in CHTSC decreased. See Note 33(b) for details.

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

- 23 -

Information of the Company’s equity transactions with noncontrolling interests for the three months ended March 31, 2023 and 2022 were as follows:

	Three Months Ended March 31, 2023
	CHTSC Share-Based Payment
Cash consideration received from noncontrolling interests (Note)	$	—
The proportionate share of the carrying amount of the net assets of the subsidiary transferred from noncontrolling interests		8,900
Differences arising from equity transactions	$	8,900
Line items for equity transaction adjustments
Additional paid-in capital - arising from changes in equities of subsidiaries	$	8,900

Note: The proceeds from the new shares issued in February 2023 by CHTSC has been received in advance in December 2022.

	Three Months Ended March 31, 2022
	CHIEF Share-Based Payment			CHTSC Share-Based Payment
Cash consideration received from noncontrolling interests	$	27,317		$	20,096
The proportionate share of the carrying amount of the net assets of the subsidiary transferred to noncontrolling interests		(16,977	)		(17,289	)
Differences arising from equity transactions	$	10,340		$	2,807
Line items for equity transaction adjustments
Additional paid-in capital - arising from changes in equities of subsidiaries	$	10,340		$	2,807

14. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

	March 31, 2023		December 31, 2022		March 31, 2022
Investments in associates	$	7,238,577	$	7,146,174	$	7,454,115
Investment in joint venture		9,602		9,677		9,873
	$	7,248,179	$	7,155,851	$	7,463,988

- 24 -

a. Investments in associates

Investments in associates were as follows:

	Carrying Amount
	March 31, 2023		December 31, 2022		March 31, 2022
Material associate
Non-listed
Next Commercial Bank Co., Ltd. (“NCB”)	$	3,077,942	$	3,173,309	$	3,528,438
Associates that are not individually material
Listed
Senao Networks, Inc. (“SNI”)		1,480,401		1,395,858		1,158,873
KingwayTek Technology Co., Ltd. (“KWT”)		271,174		267,125		262,792
Non-listed
Viettel-CHT Co., Ltd. (“Viettel-CHT”)		587,080		558,532		470,707
Taiwan International Standard Electronics Co., Ltd. (“TISE”)		347,207		296,501		356,600
Chunghwa PChome Fund I Co., Ltd. (“CPFI”)		276,539		277,776		219,253
ST-2 Satellite Ventures Pte., Ltd. (“STS”)		273,844		246,815		567,103
So-net Entertainment Taiwan Limited (“So-net”)		226,233		228,184		224,689
WiAdvance Technology Corporation (“WATC”)		221,235		227,868		245,706
KKBOX Taiwan Co., Ltd. (“KKBOXTW”)		175,395		173,634		161,236
Taiwan International Ports Logistics Corporation (“TIPL”)		109,184		101,078		76,080
CHT Infinity Singapore Pte. Ltd. (“CISG”)		59,755		62,948		56,713
Click Force Co., Ltd. (“CF”)		41,509		40,932		38,989
Imedtac Co., Ltd. (“IME”)		39,848		40,866		43,258
AgriTalk Technology Inc. (“ATT”)		33,698		34,738		17,061
Baohwa Trust Co., Ltd. (“BHT”)		10,588		13,267		20,000
Cornerstone Ventures Co., Ltd. (“CVC”)		6,945		6,743		6,617
		4,160,635		3,972,865		3,925,677
	$	7,238,577	$	7,146,174	$	7,454,115

- 25 -

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

	% of Ownership Interests and Voting Rights
	March 31, 2023		December 31, 2022		March 31, 2022
Material associate
Non-listed
Next Commercial Bank Co., Ltd. (“NCB”)		42		42		42
Associates that are not individually material
Listed
Senao Networks, Inc. (“SNI”)		34		34		34
KingwayTek Technology Co., Ltd. (“KWT”)		23		23		23
Non-listed
Viettel-CHT Co., Ltd. (“Viettel-CHT”)		30		30		30
Taiwan International Standard Electronics Co., Ltd. (“TISE”)		40		40		40
Chunghwa PChome Fund I Co., Ltd. (“CPFI”)		50		50		50
ST-2 Satellite Ventures Pte., Ltd. (“STS”)		38		38		38
So-net Entertainment Taiwan Limited (“So-net”)		30		30		30
WiAdvance Technology Corporation (“WATC”)		20		20		20
KKBOX Taiwan Co., Ltd. (“KKBOXTW”)		30		30		30
Taiwan International Ports Logistics Corporation (“TIPL”)		27		27		27
CHT Infinity Singapore Pte. Ltd. (“CISG”)		40		40		40
Click Force Co., Ltd. (“CF”)		49		49		49
Imedtac Co., Ltd. (“IME”)		7		7		7
AgriTalk Technology Inc. (“ATT”)		29		29		17
Baohwa Trust Co., Ltd. (“BHT”)		40		40		40
Cornerstone Ventures Co., Ltd. (“CVC”)		49		49		49

- 26 -

Summarized financial information of NCB was set out below:

	March 31, 2023			December 31, 2022			March 31, 2022
Assets	$	35,136,801		$	33,540,595		$	9,576,927
Liabilities		(27,709,767	)		(25,882,268	)		(1,059,976	)
Equity	$	7,427,034		$	7,658,327		$	8,516,951
The percentage of ownership interest held by the Company		41.90	%		41.90	%		41.90	%
Equity attributable to the Company	$	3,111,927		$	3,208,839		$	3,568,603
Unrealized gain or loss from downstream transactions		(33,985	)		(35,530	)		(40,165	)
The carrying amount of investment	$	3,077,942		$	3,173,309		$	3,528,438

	Three Months Ended March 31
	2023			2022
Net revenues (losses)	$	(12,489	)	$	28,106
Net loss for the period	$	(230,899	)	$	(147,879	)
Other comprehensive loss		(394	)		(7,638	)
Total comprehensive loss for the period	$	(231,293	)	$	(155,517	)

Except for NCB, no associate is considered individually material to the Company. Summarized financial information of associates that are not individually material to the Company was as follows:

	Three Months Ended March 31
	2023		2022
The Company’s share of profits	$	198,385	$	170,545
The Company’s share of other comprehensive income		9,458		4,530
The Company’s share of total comprehensive income	$	207,843	$	175,075

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

	March 31, 2023		December 31, 2022		March 31, 2022
SNI	$	5,670,029	$	3,299,228	$	2,619,487
KWT	$	880,926	$	804,187	$	856,270

The Company subscribed for all the shares in the capital increase of ATT in November 2022. Therefore, the Company’s ownership interest in ATT increased to 29.33% as of December 31, 2022.

WATC issued new shares in March 2022 and October 2022 as its employees exercised option. Therefore, the Company’s ownership interest in WATC decreased to 20.05% as of December 31, 2022.

- 27 -

STS reduced its capital in April 2022. The Company’s ownership interest in STS remained the same.

The Company invested $20,000 thousand and obtained 40.00% ownership interest in BHT in March 2022. BHT mainly engages in VR integration and AIoT security services.

The Company’s ownership interest in NCB is 41.90%. Although Chunghwa is the single largest stockholder of NCB, it only obtained six out of fifteen seats of the Board of Directors of NCB. In addition, the management considered the size of ownership interest and the dispersion of shares owned by the other stockholders, other holdings are not extremely dispersed. Chunghwa is not able to direct its relevant activities. Therefore, Chunghwa does not have control over NCB and merely has significant influence over NCB and treats it as an associate.

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

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

The Company invested and obtained 6.74% ownership interest in IME. However, as the Company continues to control one out of five seats of the Board of Directors of IME and has significant influence over IME. Therefore, the Company recognized IME as an investment in associate.

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

b. Investment in joint venture

Investment in joint venture was as follows:

	Carrying Amount						% of Ownership Interests and Voting Rights
Name of Joint Venture	March 31, 2023		December 31, 2022		March 31, 2022		March 31, 2023			December 31, 2022			March 31, 2022
Non-listed
Chunghwa SEA Holdings (“CHT SEA”)	$	9,602	$	9,677	$	9,873		51	%		51	%		51	%

The Company invested and established a joint venture, CHT SEA, with Delta Electronics, Inc. and Kwang Hsing Industrial Co., Ltd. and obtained 51% ownership interest of CHT SEA. However, according to the mutual agreements among stockholders, the Company does not individually direct CHT SEA’s relevant activities and has joint control with the other party; therefore, the Company treated CHT SEA as a joint venture.

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

	Three Months Ended March 31
	2023			2022
The Company’s share of loss	$	(75	)	$	(60	)
The Company’s share of other comprehensive income		—			—
The Company’s share of total comprehensive loss	$	(75	)	$	(60	)

- 28 -

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

15. PROPERTY, PLANT AND EQUIPMENT

	March 31, 2023		December 31, 2022		March 31, 2022
Assets used by the Company	$	281,457,364	$	285,328,919	$	278,660,259
Assets subject to operating leases		7,808,042		6,198,991		7,270,465
	$	289,265,406	$	291,527,910	$	285,930,724

a. Assets used by the Company

	Land			Land Improvements			Buildings			Computer Equipment			Telecommuni- cations Equipment			Transportation Equipment			Miscellaneous Equipment			Construction in Progress and Equipment to be Accepted			Total
Cost
Balance on January 1, 2022	$	102,644,714		$	1,661,628		$	71,358,036		$	11,217,048		$	713,534,222		$	3,927,337		$	10,808,873		$	10,786,149		$	925,938,007
Additions		—			—			3,353			26,227			29,636			—			28,517			3,815,312			3,903,045
Disposal		—			—			—			(164,374	)		(3,640,158	)		(33,776	)		(42,105	)		—			(3,880,413	)
Effect of foreign exchange differences		—			—			—			78			56,894			58			3,531			4,844			65,405
Others		(89,232	)		1,239			146,163			31,785			5,242,886			—			64,103			(5,357,263	)		39,681
Balance on March 31, 2022	$	102,555,482		$	1,662,867		$	71,507,552		$	11,110,764		$	715,223,480		$	3,893,619		$	10,862,919		$	9,249,042		$	926,065,725
Accumulated depreciation and impairment
Balance on January 1, 2022	$	—		$	(1,441,612	)	$	(30,577,570	)	$	(9,632,046	)	$	(590,533,289	)	$	(3,698,978	)	$	(8,205,324	)	$	—		$	(644,088,819	)
Depreciation expenses		—			(10,157	)		(356,721	)		(172,013	)		(6,337,429	)		(19,625	)		(175,980	)		—			(7,071,925	)
Disposal		—			—			—			164,272			3,636,779			33,776			42,101			—			3,876,928
Effect of foreign exchange differences		—			—			—			(73	)		(29,766	)		(30	)		(2,173	)		—			(32,042	)
Others		—			—			(82,484	)		(3,535	)		(3,765	)		(95	)		271			—			(89,608	)
Balance on March 31, 2022	$	—		$	(1,451,769	)	$	(31,016,775	)	$	(9,643,395	)	$	(593,267,470	)	$	(3,684,952	)	$	(8,341,105	)	$	—		$	(647,405,466	)
Balance on January 1, 2022, net	$	102,644,714		$	220,016		$	40,780,466		$	1,585,002		$	123,000,933		$	228,359		$	2,603,549		$	10,786,149		$	281,849,188
Balance on March 31, 2022, net	$	102,555,482		$	211,098		$	40,490,777		$	1,467,369		$	121,956,010		$	208,667		$	2,521,814		$	9,249,042		$	278,660,259
Cost
Balance on January 1, 2023	$	103,663,528		$	1,675,255		$	72,529,774		$	11,088,877		$	720,068,323		$	3,971,039		$	11,467,527		$	14,427,497		$	938,891,820
Additions		95,567			—			6,496			21,840			8,158			464			32,269			3,970,084			4,134,878
Disposal		(1,672	)		—			—			(315,873	)		(5,426,631	)		(39,700	)		(74,277	)		—			(5,858,153	)
Effect of foreign exchange differences		—			—			—			(13	)		(32,722	)		(21	)		148			(3,251	)		(35,859	)
Others		(731,154	)		6,101			(92,843	)		69,050			6,863,623			6,588			231,562			(7,125,883	)		(772,956	)
Balance on March 31, 2023	$	103,026,269		$	1,681,356		$	72,443,427		$	10,863,881		$	721,480,751		$	3,938,370		$	11,657,229		$	11,268,447		$	936,359,730
Accumulated depreciation and impairment
Balance on January 1, 2023	$	—		$	(1,474,085	)	$	(32,263,200	)	$	(9,553,580	)	$	(597,957,285	)	$	(3,672,728	)	$	(8,642,023	)	$	—		$	(653,562,901	)
Depreciation expenses		—			(8,513	)		(362,708	)		(168,062	)		(6,413,695	)		(22,637	)		(205,842	)		—			(7,181,457	)
Disposal		—			—			—			315,851			5,424,939			39,700			74,150			—			5,854,640
Effect of foreign exchange differences		—			—			—			242			17,778			14			(125	)		—			17,909
Others		—			—			(6,614	)		(19,024	)		(13,216	)		(150	)		8,447			—			(30,557	)
Balance on March 31, 2023	$	—		$	(1,482,598	)	$	(32,632,522	)	$	(9,424,573	)	$	(598,941,479	)	$	(3,655,801	)	$	(8,765,393	)	$	—		$	(654,902,366	)
Balance on January 1, 2023, net	$	103,663,528		$	201,170		$	40,266,574		$	1,535,297		$	122,111,038		$	298,311		$	2,825,504		$	14,427,497		$	285,328,919
Balance on March 31, 2023, net	$	103,026,269		$	198,758		$	39,810,905		$	1,439,308		$	122,539,272		$	282,569		$	2,891,836		$	11,268,447		$	281,457,364

There was no indication that property, plant and equipment was impaired; therefore, the Company did not recognize any impairment loss for the three months ended March 31, 2023 and 2022.

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

(Continued)

- 29 -

Land improvements	10~30 years
Buildings
Main buildings	20~60 years
Other building facilities	3~15 years
Computer equipment	2~8 years
Telecommunications equipment
Telecommunication circuits	2~30 years
Telecommunication machinery and antennas equipment	2~30 years
Transportation equipment	3~10 years
Miscellaneous equipment
Leasehold improvements	1~9 years
Mechanical and air conditioner equipment	3~16 years
Others	1~15 years

(Concluded)

b. Assets subject to operating leases

	Land		Buildings			Total
Cost
Balance on January 1, 2022	$	4,808,926	$	4,133,989		$	8,942,915
Others		89,232		(137,960	)		(48,728	)
Balance on March 31, 2022	$	4,898,158	$	3,996,029		$	8,894,187
Accumulated depreciation and impairment
Balance on January 1, 2022	$	—	$	(1,691,642	)	$	(1,691,642	)
Depreciation expenses		—		(19,098	)		(19,098	)
Others		—		87,018			87,018
Balance on March 31, 2022	$	—	$	(1,623,722	)	$	(1,623,722	)
Balance on January 1, 2022, net	$	4,808,926	$	2,442,347		$	7,251,273
Balance on March 31, 2022, net	$	4,898,158	$	2,372,307		$	7,270,465
Cost
Balance on January 1, 2023	$	4,376,196	$	3,185,097		$	7,561,293
Additions		—		941			941
Others		1,530,987		61,479			1,592,466
Balance on March 31, 2023	$	5,907,183	$	3,247,517		$	9,154,700
Accumulated depreciation and impairment
Balance on January 1, 2023	$	—	$	(1,362,302	)	$	(1,362,302	)
Depreciation expenses		—		(14,029	)		(14,029	)
Others		—		29,673			29,673
Balance on March 31, 2023	$	—	$	(1,346,658	)	$	(1,346,658	)
Balance on January 1, 2023, net	$	4,376,196	$	1,822,795		$	6,198,991
Balance on March 31, 2023, net	$	5,907,183	$	1,900,859		$	7,808,042

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

- 30 -

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

	March 31, 2023		December 31, 2022		March 31, 2022
Year 1	$	415,209	$	389,376	$	379,499
Year 2		285,616		280,705		302,986
Year 3		222,968		211,059		199,364
Year 4		188,271		176,548		157,340
Year 5		158,454		149,434		136,793
Onwards		1,133,154		1,122,237		1,156,427
	$	2,403,672	$	2,329,359	$	2,332,409

The above items of property, plant and equipment subject to operating leases are depreciated on a straight-line basis over their estimated useful lives as follows:

Buildings
Main buildings	35~60 years
Other building facilities	3~15 years

16. LEASE ARRANGEMENTS

a. Right-of-use assets

	March 31, 2023		December 31, 2022		March 31, 2022
Land and buildings
Handsets base stations	$	7,217,419	$	7,175,277	$	6,745,398
Others		1,738,845		1,726,510		1,554,451
Equipment		2,137,556		2,200,762		2,444,157
	$	11,093,820	$	11,102,549	$	10,744,006

	Three Months Ended March 31
	2023		2022
Additions to right-of-use assets	$	1,221,805	$	667,148
Depreciation charge for right-of-use assets
Land and buildings
Handsets base stations	$	725,128	$	702,183
Others		186,444		162,546
Equipment		85,820		85,011
	$	997,392	$	949,740

The Company did not have significant sublease or impairment of right-of-use assets for the three months ended March 31, 2023 and 2022.

- 31 -

b. Lease liabilities

	March 31, 2023		December 31, 2022		March 31, 2022
Lease liabilities
Current	$	3,319,259	$	3,338,813	$	2,994,856
Noncurrent		7,243,867		7,333,694		6,909,109
	$	10,563,126	$	10,672,507	$	9,903,965

Ranges of discount rates for lease liabilities were as follows:

	March 31, 2023		December 31, 2022		March 31, 2022
Land and buildings
Handsets base stations		0.37%~1.84%		0.37%~1.71%		0.37%~1.18%
Others		0.37%~9.00%		0.37%~9.00%		0.37%~9.00%
Equipment		0.37%~2.87%		0.37%~2.99%		0.37%~2.99%

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 37 to the consolidated financial statements for details.

d. Other lease information

	Three Months Ended March 31
	2023		2022
Expenses relating to low-value asset leases	$	2,333	$	2,014
Expenses relating to variable lease payments not included in the measurement of lease liabilities	$	1,699	$	1,827
Total cash outflow for leases	$	1,118,164	$	1,077,766

The Company leases certain equipment which qualifies as low-value asset leases. The Company has elected to apply the recognition exemption and, thus, not to recognize right-of-use assets and lease liabilities for these leases.

Lease-out arrangements under operating leases for freehold property, plant, and equipment and investment properties were set out in Notes 15 and 17 to the consolidated financial statements.

- 32 -

17. INVESTMENT PROPERTIES

Cost
Balance on January 1 and March 31, 2022	$	10,662,596
Accumulated depreciation and impairment
Balance on January 1, 2022	$	(999,958	)
Depreciation expense		(10,547	)
Balance on March 31, 2022	$	(1,010,505	)
Balance on January 1, 2022, net	$	9,662,638
Balance on March 31, 2022, net	$	9,652,091
Cost
Balance on January 1, 2023	$	10,780,029
Reclassification		(799,762	)
Balance on March 31, 2023	$	9,980,267
Accumulated depreciation and impairment
Balance on January 1, 2023	$	(976,168	)
Depreciation expense		(11,064	)
Balance on March 31, 2023	$	(987,232	)
Balance on January 1, 2023, net	$	9,803,861
Balance on March 31, 2023, net	$	8,993,035

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

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

The fair values of the Company’s investment properties as of December 31, 2022 and 2021 were determined by Level 3 fair value measurements inputs based on the appraisal reports conducted by independent appraisers. The Company used the aforementioned appraisal reports as the basis to determine the fair values as of March 31, 2023 and 2022 because there was no material change in the economic environment or the market transaction price. Those appraisal reports are based on the comparison approach, income approach or cost approach. Key assumptions and the fair values were as follows:

- 33 -

	March 31, 2023	December 31, 2022	March 31, 2022
Fair value	$23,829,552	$26,861,591	$25,547,766
Overall capital interest rate	1.31%~4.91%	1.31%~4.91%	0.91%~3.05%
Profit margin ratio	8%~20%	8%~20%	8%~20%
Discount rate	—	—	—
Capitalization rate	0.23%~2.16%	0.23%~2.16%	0.53%~2.11%

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:

	March 31, 2023		December 31, 2022		March 31, 2022
Year 1	$	114,849	$	118,370	$	107,288
Year 2		98,762		99,077		82,937
Year 3		84,896		89,821		65,683
Year 4		63,667		69,934		53,526
Year 5		39,621		43,608		34,196
Onwards		141,658		149,168		79,914
	$	543,453	$	569,978	$	423,544

18. INTANGIBLE ASSETS

	Mobile Broadband Concession			Computer Software			Goodwill			Others			Total
Cost
Balance on January 1, 2022	$	108,338,000		$	3,202,901		$	291,206		$	412,477		$	112,244,584
Additions-acquired separately		—			11,404			—			6,068			17,472
Disposal		—			(62,926	)		—			(899	)		(63,825	)
Effect of foreign exchange differences		—			55			—			15			70
Others		—			300			—			—			300
Balance on March 31, 2022	$	108,338,000		$	3,151,734		$	291,206		$	417,661		$	112,198,601
Accumulated amortization and impairment
Balance on January 1, 2022	$	(25,517,753	)	$	(2,529,941	)	$	(73,624	)	$	(178,183	)	$	(28,299,501	)
Amortization expenses		(1,549,728	)		(76,912	)		—			(7,944	)		(1,634,584	)
Disposal		—			62,926			—			899			63,825
Effect of foreign exchange differences		—			(28	)		—			(3	)		(31	)
Balance on March 31, 2022	$	(27,067,481	)	$	(2,543,955	)	$	(73,624	)	$	(185,231	)	$	(29,870,291	)
Balance on January 1, 2022, net	$	82,820,247		$	672,960		$	217,582		$	234,294		$	83,945,083
Balance on March 31, 2022, net	$	81,270,519		$	607,779		$	217,582		$	232,430		$	82,328,310

(Continued)

- 34 -

	Mobile Broadband Concession			Computer Software			Goodwill			Others			Total
Cost
Balance on January 1, 2023	$	109,963,431		$	2,797,835		$	291,206		$	421,813		$	113,474,285
Additions-acquired separately		—			45,686			—			432			46,118
Disposal		—			(58,190	)		—			(180	)		(58,370	)
Effect of foreign exchange differences		—			(42	)		—			2			(40	)
Others		—			1,571			—			—			1,571
Balance on March 31, 2023	$	109,963,431		$	2,786,860		$	291,206		$	422,067		$	113,463,564
Accumulated amortization and impairment
Balance on January 1, 2023	$	(31,812,278	)	$	(2,176,234	)	$	(73,624	)	$	(225,062	)	$	(34,287,198	)
Amortization expenses		(1,597,535	)		(71,186	)		—			(8,785	)		(1,677,506	)
Disposal		—			58,190			—			180			58,370
Effect of foreign exchange differences		—			(108	)		—			—			(108	)
Others		—			(508	)		—			—			(508	)
Balance on March 31, 2023	$	(33,409,813	)	$	(2,189,846	)	$	(73,624	)	$	(233,667	)	$	(35,906,950	)
Balance on January 1, 2023, net	$	78,151,153		$	621,601		$	217,582		$	196,751		$	79,187,087
Balance on March 31, 2023, net	$	76,553,618		$	597,014		$	217,582		$	188,400		$	77,556,614

(Concluded)

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

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

19. OTHER ASSETS

	March 31, 2023		December 31, 2022		March 31, 2022
Spare parts	$	3,681,949	$	3,379,837	$	3,154,141
Refundable deposits		1,854,044		1,964,648		2,059,771
Other financial assets		1,000,000		1,000,000		1,000,000
Others		1,777,588		1,916,562		2,061,842
	$	8,313,581	$	8,261,047	$	8,275,754
Current
Spare parts	$	3,681,949	$	3,379,837	$	3,154,141
Others		159,470		175,586		198,022
	$	3,841,419	$	3,555,423	$	3,352,163

(Continued)

- 35 -

	March 31, 2023		December 31, 2022		March 31, 2022
Noncurrent
Refundable deposits	$	1,854,044	$	1,964,648	$	2,059,771
Other financial assets		1,000,000		1,000,000		1,000,000
Others		1,618,118		1,740,976		1,863,820
	$	4,472,162	$	4,705,624	$	4,923,591

(Concluded)

Other financial assets - noncurrent was Piping Fund. As part of the government’s effort to upgrade the existing telecommunications infrastructure, Chunghwa and other public utility companies were required by the ROC government to contribute to a Piping Fund administered by the Taipei City Government. This fund was used to finance various telecommunications infrastructure projects. Net assets of this fund will be returned proportionately after the project is completed.

20. HEDGING FINANCIAL INSTRUMENTS

Chunghwa’s hedge strategy is to enter into forward exchange contracts - buy to avoid its foreign currency exposure to certain foreign currency denominated equipment payments in the following six months. In addition, Chunghwa’s management considers the market condition to determine the hedge ratio and enters into forward exchange contracts with the banks to avoid the foreign currency risk.

Chunghwa signed equipment purchase contracts with suppliers and entered into forward exchange contracts to avoid foreign currency risk exposure to Euro-denominated purchase commitments. Those forward exchange contracts were designated as cash flow hedges. When forecast purchases actually take place, basis adjustments are made to the initial carrying amounts of hedged items.

For the hedges of highly probable forecast sales and purchases, as the critical terms (i.e. the notional amount, life and underlying) of the forward foreign exchange contracts and their corresponding hedged items are the same, the Company performs a qualitative assessment of effectiveness and it is expected that the value of the forward contracts and the value of the corresponding hedged items will systematically change in opposite direction in response to movements in the underlying exchange rates.

The main source of hedge ineffectiveness in these hedging relationships is the effect of credit risks of the Company and the counterparty on the fair value of the forward exchange contracts. Such credit risks do not impact the fair value of the hedged item attributable to changes in foreign exchange rates. No other sources of ineffectiveness emerged from these hedging relationships.

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

March 31, 2023

Notional

Change in Fair Values of Hedging Instruments Used for Calculating

Amount

Forward

Line Item in

Carrying Amount

Hedge

Hedging Instruments

Currency

(In Thousands)

Maturity

Rate

Balance Sheet

Asset

Liability

Ineffectiveness

Cash flow hedge

Forecast purchases - forward exchange contracts

NT$/EUR

NT$ 72,481 /EUR 2,233

2023.06

$

32.46

Hedging financial assets (liabilities)

$

1,196

$

—

$

(11,695

)

- 36 -

	Change in Value of Hedged Item Used for Calculating Hedge Ineffectiveness		Accumulated Gain or Loss on Hedging Instruments in Other Equity
Hedged Items			Continuing Hedges		Hedge Accounting no Longer Applied
Cash flow hedge
Forecast equipment purchases	$	11,695	$	1,196	$	—

December 31, 2022

Notional Amount (In Thousands)

Forward Rate

Line Item in Balance Sheet

Carrying Amount

Change in Fair Values of Hedging Instruments Used for Calculating Hedge Ineffectiveness

Currency

Hedging Instruments

Maturity

Asset

Liability

Cash flow hedge

Forecast purchases - forward exchange contracts

NT$/EUR

NT$ 423,024 /EUR 13,350

2023.03

$

31.69

Hedging financial assets (liabilities)

$

12,891

$

—

$

21,177

	Change in Value of Hedged Item Used for Calculating Hedge Ineffectiveness			Accumulated Gain or Loss on Hedging Instruments in Other Equity
Hedged Items				Continuing Hedges		Hedge Accounting no Longer Applied
Cash flow hedge
Forecast equipment purchases	$	(21,177	)	$	12,891	$	—

March 31, 2022

Notional Amount (In Thousands)

Forward Rate

Line Item in Balance Sheet

Carrying Amount

Change in Fair Values of Hedging Instruments Used for Calculating Hedge Ineffectiveness

Hedging Instruments

Currency

Maturity

Asset

Liability

Cash flow hedge

Forecast purchases - forward exchange contracts

NT$/EUR

NT$ 238,038/ EUR 7,700

2022.06

$

30.91

Hedging financial assets (liabilities)

$

8,055

$

—

$

16,341

	Change in Value of Hedged Item Used for Calculating Hedge Ineffectiveness			Accumulated Gain or Loss on Hedging Instruments in Other Equity
Hedged Items				Continuing Hedges		Hedge Accounting no Longer Applied
Cash flow hedge
Forecast equipment purchases	$	(16,341	)	$	8,055	$	—

- 37 -

Three months ended March 31, 2023

	Comprehensive Income							Reclassification from Equity to Assets and the Adjusted Line Item
Hedge Transaction	Hedging Gain or Loss Recognized  in OCI			Amount of Hedge Ineffectiveness Recognized in Profit or Loss		Line Item in Which Hedge Ineffectiveness is Included		Amount Reclassified to Assets and the Adjusted Line Item		Due to Hedged Future Cash Flows No Longer Expected to Occur
Cash flow hedge
Forecast equipment purchases	$	(11,695	)	$	—		—	$	14,855	$	—
									Construction in progress and equipment to be accepted		Other gains and losses

Three months ended March 31, 2022

	Comprehensive Income						Reclassification from Equity to Assets and the Adjusted Line Item
Hedge Transaction	Hedging Gain or Loss Recognized  in OCI		Amount of Hedge Ineffectiveness Recognized in Profit or Loss		Line Item in Which Hedge Ineffectiveness is Included		Amount Reclassified to Assets and the Adjusted Line Item		Due to Hedged Future Cash Flows No Longer Expected to Occur
Cash flow hedge
Forecast equipment purchases	$	16,341	$	—		—	$	(7,816)	$	—
								Construction in progress and equipment to be accepted		Other gains and losses

21. SHORT-TERM LOANS

	March 31, 2023		December 31, 2022		March 31, 2022
Unsecured bank loans	$	341,800	$	722,000	$	65,000

The annual interest rates of bank loans were as follows:

	March 31, 2023			December 31, 2022			March 31, 2022
Unsecured bank loans		1.54%~3.19	%		1.30%~3.19	%		1.97%~2.71	%

22. LONG-TERM LOANS

	March 31, 2023		December 31, 2022		March 31, 2022
Secured bank loans (Note 38)	$	1,600,000	$	1,600,000	$	1,600,000

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The annual interest rates of bank loans were as follows:

	March 31, 2023			December 31, 2022			March 31, 2022
Secured bank loans		1.80	%		1.80	%		0.89	%

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

23. BONDS PAYABLE

	March 31, 2023			December 31, 2022			March 31, 2022
Unsecured domestic bonds	$	30,500,000		$	30,500,000		$	30,500,000
Less: Discounts on bonds payable		(21,261	)		(22,643	)		(26,648	)
	$	30,478,739		$	30,477,357		$	30,473,352

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

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

24. TRADE NOTES AND ACCOUNTS PAYABLE

	March 31, 2023		December 31, 2022		March 31, 2022
Trade notes and accounts payable	$	9,972,835	$	16,428,856	$	11,823,029

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

25. OTHER PAYABLES

	March 31, 2023		December 31, 2022		March 31, 2022
Accrued salary and compensation	$	7,401,186	$	10,409,299	$	7,484,267
Accrued compensation to employees and remuneration to directors and supervisors		2,650,942		2,143,523		2,530,745

(Continued)

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	March 31, 2023		December 31, 2022		March 31, 2022
Amounts collected for others	$	1,836,117	$	1,596,341	$	1,692,412
Payables to contractors		1,289,069		2,571,376		1,850,128
Payables to equipment suppliers		1,254,124		1,278,738		993,714
Accrued maintenance costs		760,964		1,060,534		899,657
Others		6,772,371		6,020,149		6,214,077
	$	21,964,773	$	25,079,960	$	21,665,000

(Concluded)

26. PROVISIONS

	March 31, 2023		December 31, 2022		March 31, 2022
Warranties	$	228,206	$	235,308	$	203,065
Onerous contracts		92,001		95,201		121,481
Employee benefits		363,554		64,776		64,450
Others		3,767		3,767		3,767
	$	687,528	$	399,052	$	392,763
Current	$	222,990	$	226,019	$	251,488
Noncurrent		464,538		173,033		141,275
	$	687,528	$	399,052	$	392,763

	Warranties			Onerous Contracts			Employee Benefits			Others		Total
Balance on January 1, 2022	$	213,537		$	146,541		$	62,833		$	3,767	$	426,678
Additional / (reversal of) provisions recognized		11,440			(25,060	)		1,617			—		(12,003	)
Used / forfeited during the period		(21,928	)		—			—			—		(21,928	)
Effect of foreign exchange differences		16			—			—			—		16
Balance on March 31, 2022	$	203,065		$	121,481		$	64,450		$	3,767	$	392,763
Balance on January 1, 2023	$	235,308		$	95,201		$	64,776		$	3,767	$	399,052
Additional / (reversal of) provisions recognized		12,201			(3,200	)		299,224			—		308,225
Used / forfeited during the period		(19,306	)		—			(446	)		—		(19,752	)
Effect of foreign exchange differences		3			—			—			—		3
Balance on March 31, 2023	$	228,206		$	92,001		$	363,554		$	3,767	$	687,528

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

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

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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.

27. RETIREMENT BENEFIT PLANS

Relevant pension costs for defined benefit plans which were determined by the pension cost rates of actuarial valuation as of December 31, 2022 and 2021 were as follows:

	Three Months Ended March 31
	2023		2022
Operating costs	$	122,969	$	142,112
Marketing expenses		82,029		89,873
General and administrative expenses		19,699		21,011
Research and development expenses		8,813		9,101
	$	233,510	$	262,097

28. EQUITY

a. Share capital

1) Common stocks

	March 31, 2023		December 31, 2022		March 31, 2022
Number of authorized shares (thousand)		12,000,000		12,000,000		12,000,000
Authorized shares	$	120,000,000	$	120,000,000	$	120,000,000
Number of issued and paid shares (thousand)		7,757,447		7,757,447		7,757,447
Issued shares	$	77,574,465	$	77,574,465	$	77,574,465

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

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 March 31, 2023, the outstanding ADSs were 192,220 thousand common stocks, which equaled 19,222 thousand units and represented 2.48% 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:

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a) Exercise their voting rights,

b) Sell their ADSs, and

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

b. Additional paid-in capital

The adjustments of additional paid-in capital for the three months ended March 31, 2023 and 2022 were as follows:

	Share Premium		Movements of Additional Paid-in Capital for Associates and Joint Ventures Accounted for Using Equity Method			Movements of Additional Paid-in Capital Arising from Changes in Equities of Subsidiaries		Difference between Consideration Received and Carrying Amount of the Subsidiaries’ Net Assets upon Disposal		Donated Capital		Stockholders’ Contribution due to Privatization		Total
Balance on January 1, 2022	$	147,329,386	$	186,391		$	2,104,672	$	987,611	$	23,487	$	20,648,078	$	171,279,625
Change in additional paid-in capital from investments in associates and joint ventures accounted for using equity method		—		(1,159	)		—		—		—		—		(1,159	)
Share-based payment transactions of subsidiaries		—		—			13,147		—		—		—		13,147
Balance on March 31, 2022	$	147,329,386	$	185,232		$	2,117,819	$	987,611	$	23,487	$	20,648,078	$	171,291,613
Balance on January 1, 2023	$	147,329,386	$	173,672		$	2,137,032	$	987,611	$	25,119	$	20,648,078	$	171,300,898
Share-based payment transactions of subsidiaries		—		—			8,900		—		—		—		8,900
Balance on March 31, 2023	$	147,329,386	$	173,672		$	2,145,932	$	987,611	$	25,119	$	20,648,078	$	171,309,798

Additional paid-in capital from share premium, donated capital and the difference between consideration received and the carrying amount of the subsidiaries’ net assets upon disposal 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 and the carrying amount of the subsidiaries net assets upon disposal may be utilized to offset deficits; furthermore, when the Company has no deficit, it may be distributed in cash or capitalized. However, other additional paid-in capital recognized in proportion of share ownership may only be utilized to offset deficits.

c. Retained earnings and dividends policy

In accordance with the Chunghwa’s Articles of Incorporation, Chunghwa must pay all outstanding taxes, offset deficits in prior years and set aside a legal reserve equal to 10% of its net income before distributing a dividend or making any other distribution to stockholders, except when the accumulated amount of such legal reserve equals to Chunghwa’s total issued capital, and depending on its business needs or requirements, may also set aside or reverse special reserves. No less than 50% of the remaining earnings comprising remaining balance of net income, if any, plus cumulative undistributed earnings shall be distributed as stockholders’ dividends, of which cash dividends to be distributed shall not be less than 50% of the total amount of dividends to be distributed. If cash dividend to be distributed is less than $0.10 per share, such cash dividend shall be distributed in the form of common stocks.

- 42 -

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 2022 earnings of Chunghwa proposed by the Chunghwa’s Board of Directors on February 24, 2023 and the appropriations of the 2021 earnings of Chunghwa approved by the stockholders in their meetings on May 27, 2022 were as follows:

	Appropriation of Earnings					Dividends Per Share (NT$)
	For Fiscal Year 2022			For Fiscal Year 2021		For Fiscal Year 2022		For Fiscal Year 2021
Provision for (reversal of) special reserve	$	(185,066	)	$	408,150
Cash dividends		36,475,514			35,746,314	$	4.702	$	4.608

The appropriations of earnings for 2022 are subject to the resolution of the stockholders’ meeting planned to be held on May 26, 2023. Information of the appropriation of Chunghwa’s earnings proposed by the Board of Directors and approved by the stockholders is available on the Market Observation Post System website.

d. Others

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

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

2) Unrealized gain or loss on financial assets at FVOCI

	Three Months Ended March 31
	2023			2022
Beginning balance	$	(124,762	)	$	(7,588	)
Unrealized gain or loss for the period
Equity instruments		546,641			(34,295	)
Share of loss of associates and joint ventures accounted for using equity method		(165	)		(3,200	)
Ending balance	$	421,714		$	(45,083	)

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e. Noncontrolling interests

	Three Months Ended March 31
	2023			2022
Beginning balance	$	12,599,541		$	11,927,604
Shares attributed to noncontrolling interests
Net income for the period		229,791			331,397
Exchange differences arising from the translation of the foreign operations		(2,494	)		12,094
Unrealized gain or loss on financial assets at FVOCI		2,191			(10,265	)
Share of other comprehensive income of associates and joint ventures accounted for using equity method		(509	)		1,489
Cash dividends distributed by subsidiaries		(676,862	)		(370,957	)
Changes in additional paid-in capital from investments in associates and joint ventures accounted for using equity method		—			(51	)
Share-based payment transactions of subsidiaries		(6,428	)		38,269
Net increase in noncontrolling interests		15,173			—
Ending balance	$	12,160,403		$	11,929,580

29. REVENUES

	Three Months Ended March 31
	2023		2022
Revenue from contracts with customers	$	53,125,275	$	50,871,121
Other revenues
Rental income		275,524		244,646
Government grants income		763,227		125,199
Others		46,879		53,773
		1,085,630		423,618
	$	54,210,905	$	51,294,739

For the information of performance obligations related to customer contracts, please refer to Note 3 Summary of Significant Accounting Policies to the consolidated financial statements for the year ended December 31, 2022 for details.

a. Disaggregation of revenue

Please refer to Note 43 Segment Information for details.

b. Contract balances

	March 31, 2023		December 31, 2022		March 31, 2022		January 1, 2022
Trade notes and accounts receivable (Note 9)	$	20,990,008	$	24,672,473	$	21,069,723	$	23,947,107

(Continued)

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	March 31, 2023			December 31, 2022			March 31, 2022			January 1, 2022
Contract assets
Products and service bundling	$	8,322,556		$	7,955,689		$	7,363,726		$	7,197,206
Others		1,165,747			1,255,584			950,466			982,688
Less: Loss allowance		(19,911	)		(19,129	)		(18,488	)		(18,080	)
	$	9,468,392		$	9,192,144		$	8,295,704		$	8,161,814
Current	$	6,123,875		$	6,055,343		$	5,539,500		$	5,554,070
Noncurrent		3,344,517			3,136,801			2,756,204			2,607,744
	$	9,468,392		$	9,192,144		$	8,295,704		$	8,161,814
Contract liabilities
Telecommunications business	$	13,790,626		$	14,081,316		$	13,079,286		$	13,143,598
Project business		6,102,454			6,586,384			6,099,624			5,435,268
Others		670,263			396,834			423,167			495,466
	$	20,563,343		$	21,064,534		$	19,602,077		$	19,074,332
Current	$	12,898,161		$	13,390,439		$	12,701,430		$	12,234,276
Noncurrent		7,665,182			7,674,095			6,900,647			6,840,056
	$	20,563,343		$	21,064,534		$	19,602,077		$	19,074,332

(Concluded)

The changes in the contract asset and the contract liability balances primarily result from the timing difference between the satisfaction of performance obligations and the payments collected from customers.

The Company applies the simplified approach to recognize expected credit losses prescribed by IFRS 9, which permits the use of lifetime expected loss provision for receivables. Contract assets will be reclassified to trade receivables when the corresponding invoice is billed to the client. Contract assets have substantially the same risk characteristics as the trade receivables of the same types of contracts. Therefore, the Company concluded that the expected loss rates for trade receivables can be applied to the contract assets.

c. Incremental costs of obtaining contracts

	March 31, 2023		December 31, 2022		March 31, 2022
Noncurrent
Incremental costs of obtaining contracts	$	954,772	$	979,914	$	967,462

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. Amortization expenses for the three months ended March 31, 2023 and 2022 are $214,202 thousand and $210,872 thousand, respectively.

- 45 -

30. NET INCOME

a. Other income and expenses

	Three Months Ended March 31
	2023		2022
Loss on disposal of property, plant and equipment, net	$	44	$	1,357

b. Other income

	Three Months Ended March 31
	2023		2022
Rental income	$	18,904	$	19,449
Others		25,882		24,934
	$	44,786	$	44,383

c. Other gains and losses

	Three Months Ended March 31
	2023			2022
Valuation loss on financial assets and liabilities at fair value through profit or loss, net	$	(46,086	)	$	(94,077	)
Foreign currency exchange loss, net		(54,991	)		(28,908	)
Gain on disposal of financial instruments, net		—			728
Others		(2,887	)		13,931
	$	(103,964	)	$	(108,326	)

d. Interest expenses

	Three Months Ended March 31
	2023		2022
Interest on bonds payable	$	41,963	$	35,683
Interest on lease liabilities		23,233		16,331
Interest paid to financial institutions		10,212		3,992
Others		4		6
	$	75,412	$	56,012

e. Impairment loss (reversal of impairment loss)

	Three Months Ended March 31
	2023			2022
Contract assets	$	782		$	408
Trade notes and accounts receivable	$	100,286		$	86,521
Other receivables	$	(700	)	$	14,457
Inventories	$	5,274		$	40,452

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f. Depreciation and amortization expenses

	Three Months Ended March 31
	2023		2022
Property, plant and equipment	$	7,195,486	$	7,091,023
Right-of-use assets		997,392		949,740
Investment properties		11,064		10,547
Intangible assets		1,677,506		1,634,584
Incremental costs of obtaining contracts		214,202		210,872
Total depreciation and amortization expenses	$	10,095,650	$	9,896,766
Depreciation expenses summarized by functions
Operating costs	$	7,656,051	$	7,565,322
Operating expenses		547,891		485,988
	$	8,203,942	$	8,051,310
Amortization expenses summarized by functions
Operating costs	$	1,844,102	$	1,797,521
Marketing expenses		17,397		19,976
General and administrative expenses		17,792		16,789
Research and development expenses		12,417		11,170
	$	1,891,708	$	1,845,456

g. Employee benefit expenses

	Three Months Ended March 31
	2023		2022
Post-employment benefit
Defined contribution plans	$	231,703	$	206,808
Defined benefit plans		233,510		262,097
		465,213		468,905
Share-based payment
Equity-settled share-based payment		2,472		4,003
Other employee benefit (Note)		11,068,564		10,865,724
Total employee benefit expenses	$	11,536,249	$	11,338,632
Summary by functions
Operating costs	$	5,486,895	$	5,506,617
Operating expenses		6,049,354		5,832,015
	$	11,536,249	$	11,338,632

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

Chunghwa distributes employees’ compensation at the rates from 1.7% to 4.3% and remuneration to directors not higher than 0.17%, respectively, of pre-tax income.

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.

- 47 -

The compensation to the employees and remuneration to the directors of 2022 and 2021 approved by the Board of Directors on February 24, 2023 and February 23, 2022, respectively, were as follows. The compensation to the employees and remuneration to the directors of 2022 will be reported to the stockholders in their meeting planned to be held on May 26, 2023.

	Cash
	2022		2021
Compensation distributed to the employees	$	1,498,374	$	1,429,000
Remuneration paid to the directors		39,480		38,552

There was no difference between the initial accrued amounts recognized in 2022 and 2021 and the amounts approved by the Board of Directors in 2023 and 2022 of the aforementioned compensation to employees and the remuneration to directors.

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

31. INCOME TAX

a. Income tax recognized in profit or loss

The major components of income tax expense were as follows:

	Three Months Ended March 31
	2023			2022
Current tax
Current tax expenses recognized for the period	$	2,337,295		$	2,251,068
Income tax adjustments on prior years		(28,293	)		—
Others		364			391
		2,309,366			2,251,459
Deferred tax
Deferred tax expenses recognized for the period		77,581			31,949
Income tax adjustments on prior years		—			8
		77,581			31,957
Income tax recognized in profit or loss	$	2,386,947		$	2,283,416

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

b. Income tax examinations

Income tax returns of Chunghwa has been examined by the tax authorities through 2019. Income tax returns of SENAO, CHYP, CHSI, CHST have been examined by the tax authorities through 2020. Income tax returns of ISPOT, Youth, Youyi, Aval, Wiin, SENYOUNG, Senaolife, CHI, CHPT, CHIEF, Unigate, SFD, SHE, CLPT, CHTSC, LED, HHI, IISI and UTC have been examined by the tax authorities through 2021.

- 48 -

32. EARNINGS PER SHARE (“EPS”)

Net income and weighted average number of common stocks used in the calculation of earnings per share were as follows:

Net Income

	Three Months Ended March 31
	2023			2022
Net income used to compute the basic earnings per share
Net income attributable to the parent	$	9,643,255		$	9,059,580
Assumed conversion of all dilutive potential common stocks
Employee stock options and employee compensation of subsidiaries		(588	)		(1,002	)
Net income used to compute the diluted earnings per share	$	9,642,667		$	9,058,578

Weighted Average Number of Common Stocks

	(Thousand Shares)
	Three Months Ended March 31
	2023		2022
Weighted average number of common stocks used to compute the basic earnings per share		7,757,447		7,757,447
Assumed conversion of all dilutive potential common stocks
Employee compensation		9,511		8,421
Weighted average number of common stocks used to compute the diluted earnings per share		7,766,958		7,765,868

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.

33. SHARE-BASED PAYMENT ARRANGEMENT

a. CHIEF share-based compensation plan (“CHIEF Plan”) described as follows:

Effective Date for Plan Registration	Resolution Date by CHIEF’s Board of Directors		Stock Options Units		Exercise Price (NT$)
2020.09.16		2020.10.26		200.00	$	193.50
						(Original price $ 206.00)
2017.12.18		2018.10.31		50.00		$130.30
						(Original price $147.00)
		2017.12.19		950.00		$124.70
						(Original price $147.00)

- 49 -

Each option is eligible to subscribe for one thousand common stocks when exercisable. 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 Board of Directors of CHIEF resolved to issue stock options on October 26, 2020 and authorized the chairman to decide the grant date. Afterwards, the grant date was decided as November 13, 2020.

The compensation costs for stock options for the three months ended March 31, 2023 and 2022 were as follows:

	Three Months Ended March 31
	2023		2022
Granted on November 13, 2020	$	1,395	$	2,431
Granted on October 31, 2018		—		17
	$	1,395	$	2,448

CHIEF modified the plan terms of stock options granted on November 13, 2020 in July 2022; therefore, the exercise price changed from $199.70 to $193.50 per share. The modification did not cause any incremental fair value granted.

CHIEF modified the plan terms of stock options granted on October 31, 2018 in July 2022; therefore, the exercise price changed from $134.50 to $130.30 per share. The modification did not cause any incremental fair value granted.

CHIEF modified the plan terms of stock options granted on December 19, 2017 in July 2022; therefore, the exercise price changed from $128.70 to $124.70 per share. The modification did not cause any incremental fair value granted.

Information about CHIEF’s outstanding stock options for the three months ended March 31, 2023 and 2022 was as follows:

	Three Months Ended March 31, 2023
	Granted on November 13, 2020
	Number of Options		Weighted Average Exercise Price (NT$)
Employee stock options
Options outstanding at beginning and end of the period		142.25	$	193.50
Options exercisable at end of the period		0.50		193.50
Weighted average remaining contractual life (years)		2.62

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	Three Months Ended March 31, 2022
	Granted on November 13, 2020				Granted on October 31, 2018				Granted on December 19, 2017
	Number of Options		Weighted Average Exercise Price (NT$)		Number of Options		Weighted Average Exercise Price (NT$)		Number of Options			Weighted Average Exercise Price (NT$)
Employee stock options
Options outstanding at beginning of the period		194.00	$	199.70		10.50	$	134.50		213.25		$	128.70
Options exercised		—		—		—		—		(212.25	)		128.70
Options outstanding at end of the period		194.00		199.70		10.50		134.50		1.00			128.70
Options exercisable at end of the period		—		—		—		—		1.00			128.70
Weighted average remaining contractual life (years)		3.62				1.58				0.72

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

	Stock Options Granted on November 13, 2020			Stock Options Granted on October 31, 2018			Stock Options Granted on December 19, 2017
Grant-date share price (NT$)	$	356.00		$	166.00		$	95.92
Exercise price (NT$)	$	206.00		$	147.00		$	147.00
Dividend yield		—			—			—
Risk-free interest rate		0.18	%		0.72	%		0.62	%
Expected life		5 years			5 years			5 years
Expected volatility		34.61	%		16.60	%		17.35	%
Weighted average fair value of grants (NT$)	$	173,893		$	33,540		$	2,318

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. The expected volatilities for the options granted from 2017 and 2018 were based on the average annualized historical share price volatility of CHIEF’s comparable companies before the grant date.

b. CHTSC share-based compensation plan (“CHTSC Plan”) described as follows:

The Board of Directors of CHTSC resolved to issue 4,500 and 3,500 stock options on December 20, 2019 and February 20, 2021, respectively. Each option is eligible to subscribe for one thousand common stocks when exercisable and the exercise price 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.

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The compensation costs for stock options for the three months ended March 31, 2023 and 2022 were as follows:

	Three Months Ended March 31
	2023		2022
Granted on February 20, 2021	$	447	$	889
Granted on December 20, 2019		170		395
	$	617	$	1,284

Information about CHTSC’s outstanding stock options for the three months ended March 31, 2023 and 2022 were as follows:

	Three Months Ended March 31, 2023
	Granted on February 20, 2021					Granted on December 20, 2019
	Number of Options			Weighted Average Exercise Price (NT$)		Number of Options			Weighted Average Exercise Price (NT$)
Employee stock options
Options outstanding at beginning of the period		2,343		$	19.085		1,083		$	19.085
Options exercised		(764	)		19.085		(31	)		19.085
Options forfeited		(14	)		—		(21	)		—
Options outstanding at end of the period		1,565			19.085		1,031			19.085
Options exercisable at end of the period		14			19.085		—			—
Weighted average remaining contractual life (years)		2.89					1.72

	Three Months Ended March 31, 2022
	Granted on February 20, 2021				Granted on December 20, 2019
	Number of Options		Weighted Average Exercise Price (NT$)		Number of Options			Weighted Average Exercise Price (NT$)
Employee stock options
Options outstanding at beginning of the period		3,324	$	19.085		3,174		$	19.085
Options exercised		—		—		(1,053	)		19.085

(Continued)

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	Three Months Ended March 31, 2022
	Granted on February 20, 2021					Granted on December 20, 2019
	Number of Options			Weighted Average Exercise Price (NT$)		Number of Options		Weighted Average Exercise Price (NT$)
Options forfeited		(16	)	$	—		—	$	—
Options outstanding at end of the period		3,308			19.085		2,121		19.085
Options exercisable at end of the period		820			19.085		5		19.085
Weighted average remaining contractual life (years)		3.89					2.72

(Concluded)

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

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

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

c. CLPT share-based compensation plan (“CLPT Plan”) described as follows:

The Board of Directors of CLPT resolved to issue 690 and 600 stock options on February 26, 2021 and May 31, 2022, respectively. Each option is eligible to subscribe for one thousand common stocks when exercisable and the exercise price are both $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.

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The compensation costs for stock options for the three months ended March 31, 2023 and 2022 were as follows:

	Three Months Ended March 31
	2023		2022
Granted on May 31, 2022	$	258	$	—
Granted on February 26, 2021		202		271
	$	460	$	271

CLPT modified the plan terms of stock options granted on February 26, 2021 in September 2021; therefore, the exercise price changed from $16.87 to $15.90 per share. The modification did not cause any incremental fair value granted.

Information about CLPT’s outstanding stock options for the three months ended March 31, 2023 and 2022 was as follows:

	Three Months Ended March 31, 2023
	Granted on May 31, 2022				Granted on February 26, 2021
	Number of Options		Weighted Average Exercise Price (NT$)		Number of Options		Weighted Average Exercise Price (NT$)
Employee stock options Options
outstanding at beginning and end of the period		440	$	16.87		510	$	15.90
Options exercisable at end of the period		—		16.87		255		15.90
Weighted average remaining contractual life (years)		3.17				1.91

	Three Months Ended March 31, 2022
	Granted on February 26, 2021
	Number of Options		Weighted Average Exercise Price (NT$)
Employee stock options Options
outstanding at beginning and end of the period		550	$	15.90
Options exercisable at end of the period		—		—
Weighted average remaining contractual life (years)		2.91

- 54 -

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

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

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

34 CASH FLOW INFORMATION

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

Investing activities	Three Months Ended March 31
	2023		2022
Additions of property, plant and equipment	$	4,135,819	$	3,903,045
Changes in other payables		1,282,319		1,324,606
Payments for acquisition of property, plant and equipment	$	5,418,138	$	5,227,651

Financing Activities

	Balance on January 1,		Cash Flows From Financing			Changes in Non-Cash Transactions					Cash Flows From Operation Activities -			Balance on March 31,
	2023		Activities			New Leases		Others			Interest Paid			2023
Lease liabilities	$	10,672,507	$	(1,090,899	)	$	1,221,805	$	(217,054	)	$	(23,233	)	$	10,563,126

	Balance on January 1,		Cash Flows From Financing			Changes in Non-Cash Transactions				Cash Flows From Operation Activities -			Balance on March 31,
	2022		Activities			New Leases		Others		Interest Paid			2022
Lease liabilities	$	10,272,253	$	(1,057,594	)	$	667,148	$	38,489	$	(16,331	)	$	9,903,965

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35. CAPITAL MANAGEMENT

The Company manages its capital to ensure that entities in the Company will be able to continue as going concerns while maximizing the return to stakeholders through the optimization of the debt and equity balance.

The capital structure of the Company consists of debt of the Company and the equity attributable to the parent.

Some consolidated entities are required to maintain minimum paid-in capital amount as prescribed by the applicable laws.

The management reviews the capital structure of the Company as needed. As part of this review, the management considers the cost of capital and the risks associated with each class of capital. According to the management’s suggestions, the Company maintains a balanced capital structure through paying cash dividends, increasing its share capital, purchasing outstanding shares, and issuing new debt or repaying debt.

36. FINANCIAL INSTRUMENTS

Fair Value Information

The fair value measurement guidance establishes a framework for measuring fair value and expands disclosure about fair value measurements. The standard describes a fair value hierarchy based on three levels of inputs that may be used to measure fair value. These levels are:

Level 1 fair value measurements: These measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 fair value measurements: These measurements are those derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 fair value measurements: These measurements are those derived from valuation techniques that include inputs for the asset or liability that are not based on observable market data (unobservable inputs).

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 or the fair values cannot be reliable estimated.

	March 31, 2023				December 31, 2022				March 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
Financial liabilities
Financial liabilities measured at amortized cost
Bonds payable	$	30,478,739	$	30,456,623	$	30,477,357	$	30,452,475	$	30,473,352	$	30,509,155

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

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

March 31, 2023

	Level 1		Level 2		Level 3		Total
Financial assets at FVTPL
Derivatives	$	—	$	3,851	$	—	$	3,851
Listed stocks		442		—		—		442
Non-listed stocks		—		—		822,273		822,273
Limited partnership		—		—		228,149		228,149
Film and drama investing agreements		—		—		23,355		23,355
	$	442	$	3,851	$	1,073,777	$	1,078,070
Hedging financial assets	$	—	$	1,196	$	—	$	1,196
Financial assets at FVOCI
Listed stocks	$	292,006	$	—	$	—	$	292,006
Non-listed stocks		—		—		3,748,207		3,748,207
	$	292,006	$	—	$	3,748,207	$	4,040,213

December 31, 2022

	Level 1		Level 2		Level 3		Total
Financial assets at FVTPL
Derivatives	$	—	$	3,514	$	—	$	3,514
Listed stocks		439		—		—		439
Non-listed stocks		—		—		860,960		860,960
Limited partnership		—		—		135,121		135,121
Film and drama investing agreements		—		—		24,122		24,122
	$	439	$	3,514	$	1,020,203	$	1,024,156
Hedging financial assets	$	—	$	12,891	$	—	$	12,891
Financial assets at FVOCI
Listed stocks	$	272,802	$	—	$	—	$	272,802
Non-listed stocks		—		—		3,218,579		3,218,579
	$	272,802	$	—	$	3,218,579	$	3,491,381

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March 31, 2022

	Level 1		Level 2		Level 3		Total
Financial assets at FVTPL
Derivatives	$	—	$	2,738	$	—	$	2,738
Listed stocks		452		—		—		452
Non-listed stocks		—		—		783,493		783,493
Limited partnership		—		—		22,451		22,451
	$	452	$	2,738	$	805,944	$	809,134
Hedging financial assets	$	—	$	8,055	$	—	$	8,055
Financial assets at FVOCI
Listed stocks	$	366,443	$	—	$	—	$	366,443
Non-listed stocks		—		—		3,207,841		3,207,841
	$	366,443	$	—	$	3,207,841	$	3,574,284

There were no transfers between Levels 1 and 2 for the three months ended March 31, 2023 and 2022.

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

Three months ended March 31, 2023

Financial Assets	Measured at Fair Value through Profit or Loss			Measured at Fair Value through Other Comprehensive Income		Total
Balance on January 1, 2023	$	1,020,203		$	3,218,579	$	4,238,782
Acquisition		100,000			—		100,000
Recognized in profit or loss under “Other gains and losses”		(46,426	)		—		(46,426	)
Recognized in other comprehensive income under “Unrealized gain or loss on financial assets at fair value through other comprehensive income”		—			529,628		529,628
Balance on March 31, 2023	$	1,073,777		$	3,748,207	$	4,821,984
Unrealized gain or loss for the three months ended March 31, 2023	$	(46,426	)

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Three months ended March 31, 2022

Financial Assets	Measured at Fair Value through Profit or Loss			Measured at Fair Value through Other Comprehensive Income		Total
Balance on January 1, 2022	$	908,775		$	3,157,306	$	4,066,081
Recognized in profit or loss under “Other gains and losses”		(102,831	)		—		(102,831	)
Recognized in other comprehensive income under “Unrealized gain or loss on financial assets at fair value through other comprehensive income”		—			50,535		50,535
Balance on March 31, 2022	$	805,944		$	3,207,841	$	4,013,785
Unrealized gain or loss for the three months ended March 31, 2022	$	(102,831	)

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.

	March 31, 2023	December 31, 2022	March 31, 2022
Discount for lack of marketability	14.09%~20.00%	14.09%~20.00%	16.05%~20.00%
Noncontrolling interests discount	17.29%~25.00%	17.29%~20.00%	17.29%~25.00%
Growth rate of long-term revenue	0.19%	0.19%	0.19%
Discount rate	7.26%~7.70%	7.20%~8.80%	7.22%

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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.

	March 31,			March 31,
	2023			2022
Discount for lack of marketability
5% increase	$	(34,179	)	$	(26,748	)
5% decrease	$	34,179		$	26,748
Noncontrolling interests discount
5% increase	$	(23,417	)	$	(13,976	)
5% decrease	$	23,417		$	13,976
Long-term revenue growth rates
0.1% increase	$	32,416		$	27,996
0.1% decrease	$	(31,805	)	$	(27,458	)
Discount rate
1% increase	$	(385,634	)	$	(330,677	)
1% decrease	$	475,487		$	409,131

Categories of Financial Instruments

	March 31, 2023		December 31, 2022		March 31, 2022
Financial assets
Measured at FVTPL
Mandatorily measured at FVTPL	$	1,078,070	$	1,024,156	$	809,134
Hedging financial assets		1,196		12,891		8,055
Financial assets at amortized cost (Note a)		82,588,471		81,523,688		77,428,517
Financial assets at FVOCI		4,040,213		3,491,381		3,574,284
Financial liabilities
Measured at amortized cost (Note b)		59,595,775		67,451,245		60,741,663

Note a:	The balances included cash and cash equivalents, trade notes and accounts receivable, receivables from related parties, other current monetary assets and refundable deposits (classified as other noncurrent assets), which were financial assets measured at amortized cost.
Note b:	The balances included short-term loans, trade notes and accounts payable, payables to related parties, partial other payables, customers’ deposits, bonds payable and long-term loans which were financial liabilities carried at amortized cost.

Financial Risk Management Objectives

The main financial instruments of the Company include equity investments, trade notes and accounts receivable, trade notes and accounts payable, lease liabilities, loans and bonds payable. The Company’s Finance Department provides services to its business units, co-ordinates access to domestic and international capital markets, monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk, interest rate risk and other price risk), credit risk, and liquidity risk.

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The Company seeks to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives is governed by the Company’s policies approved by the Board of Directors. Those derivatives are used to hedge the risks of exchange rate fluctuation arising from operating or investment activities. Compliance with policies and risk exposure limits is reviewed by the Company’s Finance Department on a continuous basis. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

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

a. Market risk

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

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

1) Foreign currency risk

For details about the carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities at the balance sheet dates, please refer to Note 41 Significant Assets and Liabilities Denominated in Foreign Currencies.

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

	March 31, 2023		December 31, 2022		March 31, 2022
Assets
EUR	$	5,047	$	16,405	$	10,793

Foreign currency sensitivity analysis

The Company is mainly exposed to the fluctuations of the currencies USD, EUR and SGD as listed in Note 41.

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.

	Three Months Ended March 31
	2023			2022
Profit or loss
Monetary assets and liabilities (a)
USD	$	96,180		$	52,712
EUR		(47,658	)		(32,208	)

(Continued)

- 61 -

	Three Months Ended March 31
	2023			2022
SGD	$	(66,966	)	$	(93,442	)
Derivatives (b)
EUR		11,768			8,778
Equity
Derivatives (c)
EUR		3,701			12,289

(Concluded)

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

b) This is mainly attributable to forward exchange contracts.

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

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

2) Interest rate risk

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

	March 31, 2023		December 31, 2022		March 31, 2022
Fair value interest rate risk
Financial assets	$	46,432,749	$	41,593,475	$	39,301,834
Financial liabilities		41,041,865		41,149,864		40,377,317
Cash flow interest rate risk
Financial assets		9,481,370		9,631,079		11,877,021
Financial liabilities		1,941,800		2,322,000		1,665,000

Interest rate sensitivity analysis

The sensitivity analyses below have been determined based on the exposure to interest rates for non-derivative instruments at the end of the reporting period. A 25 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

If interest rates had been 25 basis points higher/lower and all other variables were held constant, the Company’s pre-tax income would increase/decrease by $18,849 thousand and $25,530 thousand for the three months ended March 31, 2023 and 2022, respectively. This is mainly attributable to the Company’s exposure to floating interest rates on its financial assets, short-term and long-term loans.

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3) Other price risk

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

Equity price sensitivity analysis

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

If equity prices had been 5% higher/lower, pre-tax profit and pre-tax other comprehensive income would have increased/decreased by $52,543 thousand and $202,011 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL and financial assets at FVOCI for the three months ended March 31, 2023. If equity prices had been 5% higher/lower, pre-tax profit and pre-tax other comprehensive income would have increased/decreased by $40,320 thousand and $178,714 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL and financial assets at FVOCI for the three months ended March 31, 2022.

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.

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.

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March 31, 2023

	Weighted Average Effective Interest Rate (%)		Less than 1 Month		1-3 Months		3 Months to 1 Year		1-5 Years		More than 5 Years		Total
Non-derivative financial liabilities
Non-interest bearing		—	$	29,564,245	$	—	$	2,650,942	$	5,012,177	$	—	$	37,227,364
Floating interest rate instruments		1.87		—		231,800		110,000		1,600,000		—		1,941,800
Fixed interest rate instruments		0.53		—		—		—		21,700,000		8,800,000		30,500,000
			$	29,564,245	$	231,800	$	2,760,942	$	28,312,177	$	8,800,000	$	69,669,164

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

	Less than 1 Year		1-3 Years		3-5 Years		More than 5 Years		Total
Lease liabilities	$	3,371,554	$	4,383,718	$	2,207,789	$	793,490	$	10,756,551

December 31, 2022

	Weighted Average Effective Interest Rate (%)		Less than 1 Month		1-3 Months		3 Months to 1 Year		1-5 Years		More than 5 Years		Total
Non-derivative financial liabilities
Non-interest bearing		—	$	39,904,488	$	—	$	2,143,523	$	5,156,700	$	—	$	47,204,711
Floating interest rate instruments		1.79		—		300,000		422,000		1,600,000		—		2,322,000
Fixed interest rate instruments		0.53		—		—		—		21,700,000		8,800,000		30,500,000
			$	39,904,488	$	300,000	$	2,565,523	$	28,456,700	$	8,800,000	$	80,026,711

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

	Less than 1 Year		1-3 Years		3-5 Years		More than 5 Years		Total
Lease liabilities	$	3,390,348	$	4,445,772	$	2,142,864	$	869,994	$	10,848,978

March 31, 2022

	Weighted Average Effective Interest Rate (%)		Less than 1 Month		1-3 Months		3 Months to 1 Year		1-5 Years		More than 5 Years		Total
Non-derivative financial liabilities
Non-interest bearing		—	$	31,171,376	$	—	$	2,530,745	$	4,916,202	$	—	$	38,618,323
Floating interest rate instruments		0.96		—		65,000		—		1,600,000		—		1,665,000
Fixed interest rate instruments		0.53		—		—		—		14,200,000		16,300,000		30,500,000
			$	31,171,376	$	65,000	$	2,530,745	$	20,716,202	$	16,300,000	$	70,783,323

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

	Less than 1 Year		1-3 Years		3-5 Years		More than 5 Years		Total
Lease liabilities	$	3,048,931	$	4,019,354	$	1,791,040	$	1,170,445	$	10,029,770

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

	Less than 1 Month		1-3 Months		3 Months to 1 Year		1-5 Years		Total
March 31, 2023
Gross settled
Forward exchange contracts
Inflow	$	—	$	307,966	$	—	$	—	$	307,966
Outflow		—		302,919		—		—		302,919
	$	—	$	5,047	$	—	$	—	$	5,047
December 31, 2022
Gross settled
Forward exchange contracts
Inflow	$	—	$	501,175	$	—	$	—	$	501,175
Outflow		—		484,770		—		—		484,770
	$	—	$	16,405	$	—	$	—	$	16,405
March 31, 2022
Gross settled
Forward exchange contracts
Inflow	$	—	$	421,866	$	—	$	—	$	421,866
Outflow		—		411,073		—		—		411,073
	$	—	$	10,793	$	—	$	—	$	10,793

2) Financing facilities

	March 31, 2023		December 31, 2022		March 31, 2022
Unsecured bank loan facilities
Amount used	$	341,800	$	722,000	$	65,000
Amount unused		55,814,293		56,861,505		62,154,055
	$	56,156,093	$	57,583,505	$	62,219,055
Secured bank loan facilities
Amount used	$	1,600,000	$	1,600,000	$	1,600,000
Amount unused		—		—		—
	$	1,600,000	$	1,600,000	$	1,600,000

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37. RELATED PARTIES TRANSACTIONS

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

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

Company	Relationship
Taiwan International Standard Electronics Co., Ltd.	Associate
So-net Entertainment Taiwan Limited	Associate
KKBOX Taiwan Co., Ltd.	Associate
KingwayTek Technology Co., Ltd.	Associate
Taiwan International Ports Logistics Corporation	Associate
Senao Networks, Inc.	Associate
EnRack Tech. Co., Ltd.	Subsidiary of the Company’s associate, Senao Networks, Inc.
ST-2 Satellite Ventures Pte., Ltd.	Associate
CHT Infinity Singapore Pte. Ltd.	Associate
Viettel-CHT Co., Ltd.	Associate
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
Chunghwa SEA Holdings	Joint venture
Other related parties
Chunghwa Telecom Foundation	A nonprofit organization of which the funds donated by Chunghwa exceeds one third of its total funds
Senao Technical and Cultural Foundation	A nonprofit organization of which the funds donated by SENAO exceeds one third of its total funds
Sochamp Technology Co., Ltd.	Investor of significant influence over CHST
E-Life Mall Co., Ltd.	Substantial related party of SENAO
Engenius Technologies Co., Ltd.	Substantial related party of SENAO
Cheng Keng Investment Co., Ltd.	Substantial related party of SENAO
Cheng Feng Investment Co., Ltd.	Substantial related party of SENAO
All Oriented Investment Co., Ltd.	Substantial related party of SENAO
Hwa Shun Investment Co., Ltd.	Substantial related party of SENAO
Yu Yu Investment Co., Ltd.	Substantial related party of SENAO
Kangsin Co., Ltd.	Substantial related party of SENAO
United Daily News Co., Ltd.	Investor of significant influence over SFD
Shenzhen Century Communication Co., Ltd.	Investor of significant influence over SCT
Advantech Co., Ltd.	Investor of significant influence over IISI
Z-Com, Inc.	Investor of significant influence over CHST

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

1) Operating transactions

	Revenues
	Three Months Ended March 31
	2023		2022
Associates	$	77,604	$	70,588
Others		19,329		14,307
	$	96,933	$	84,895

	Operating Costs and Expenses
	Three Months Ended March 31
	2023		2022
Associates	$	282,831	$	237,676
Others		56,379		62,818
	$	339,210	$	300,494

2) Non-operating transactions

	Non-operating Income and Expenses
	Three Months Ended March 31
	2023		2022
Associates	$	9,426	$	9,391
Others		192		287
	$	9,618	$	9,678

3) Receivables

	March 31, 2023		December 31, 2022		March 31, 2022
Associates	$	41,868	$	70,091	$	34,351
Others		6,190		4,970		5,294
	$	48,058	$	75,061	$	39,645

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4) Payables

	March 31, 2023		December 31, 2022		March 31, 2022
Associates	$	273,606	$	534,515	$	206,595
Others		3,973		4,679		7,497
	$	277,579	$	539,194	$	214,092

5) Customers’ deposits

	March 31, 2023		December 31, 2022		March 31, 2022
Associates	$	30,215	$	68,942	$	24,686
Others		284		284		—
	$	30,499	$	69,226	$	24,686

6) Acquisition of property, plant and equipment

	Three Months Ended March 31
	2023		2022
Associates	$	53,733	$	—

7) Acquisition of intangible assets

	Three Months Ended March 31
	2023		2022
Associates	$	—	$	677

8) Lease-in agreements

Chunghwa entered into a contract with ST-2 Satellite Ventures Pte., Ltd. on March 12, 2010 to lease capacity on the ST-2 satellite. This lease term is for 15 years which should start from the official operation of ST-2 satellite and the total contract value is approximately $6,000,000 thousand (SGD 260,723 thousand), including a prepayment of $3,067,711 thousand at the inception of the lease, and the rest of amount should be paid annually when ST-2 satellite starts its official operation. ST-2 satellite was launched in May 2011 and began its official operation in August 2011. As ST-2 satellite is in good operating condition, the useful life is extended for another 3 years and 3 months after evaluation in 2021. The Board of Directors of Chunghwa approved to extend the lease period accordingly with the original contract terms in December 2021; therefore, Chunghwa acquired right-of-use asset of $1,124,780 thousand from the aforementioned lease extension.

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

	March 31, 2023		December 31, 2022		March 31, 2022
Lease liabilities - current	$	194,059	$	193,805	$	179,235
Lease liabilities - noncurrent		1,716,537		1,760,815		1,757,259
	$	1,910,596	$	1,954,620	$	1,936,494

The interest expense recognized for the aforementioned lease liabilities for the three months ended March 31, 2023 and 2022 were $2,047 thousand and $2,021 thousand, respectively.

c. Compensation of key management personnel

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

	Three Months Ended March 31
	2023		2022
Short-term employee benefits	$	94,024	$	94,024
Post-employment benefits		2,213		1,794
Share-based payment		235		401
		$96,472		$96,219

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

38. PLEDGED ASSETS

The following assets are pledged as collaterals for bank loans, custom duties of the imported materials, and warranties of contract performance as well as the bank deposits for the restricted purpose in accordance with The Management, Utilization, and Taxation of Repatriated Offshore Funds Act.

	March 31, 2023		December 31, 2022		March 31, 2022
Property, plant and equipment	$	2, 490,970	$	2,402,781	$	2,424,917
Restricted assets (included in other assets - others)		101,079		131,136		112,748
	$	2,592,049	$	2,533,917	$	2,537,665

39. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

Except for those disclosed in other notes, the Company’s significant commitments and contingent liabilities as of March 31, 2023 were as follows:

a. Acquisitions of land and buildings of $55,050 thousand.

b. Acquisitions of telecommunications-related inventory and equipment of $25,075,635 thousand.

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

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

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

f. Chunghwa signed a contract, the ST-2 Satellite Succession Plan, with Singapore Telecommunications Limited, for a total transaction price of EUR 177,000 thousand and SGD 51,000 thousand.

40. OTHER MATTERS

The Company has assessed the economic impact of COVID-19 pandemic and determined that there were no significant impacts on the Company’s consolidated financial statements as of the date the consolidated financial statements were authorized for issue. The Company will continue to monitor developments of the pandemic and assess the related impacts.

41. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The following information summarizes the disclosure of foreign currencies other than the functional currency of Chunghwa and its subsidiaries. The following exchange rates are the exchange rates used to translate to the presentation currency of the consolidated financial statements, which is the NTD:

	March 31, 2023
	Foreign Currencies (Thousands)		Exchange Rate		New Taiwan Dollars (Thousands)
Assets denominated in foreign currencies
Monetary items
USD	$	91,587		30.45	$	2,788,829
EUR		2,606		33.15		86,375
SGD		27,500		22.91		630,021
Non-monetary items
Investments accounted for using equity method
SGD		11,953		22.91		273,844
VND		460,454,796		0.0013		587,080
Liabilities denominated in foreign currencies
Monetary items
USD		28,415		30.45		865,225
EUR		31,358		33.15		1,039,525
SGD		85,960		22.91		1,969,338

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	December 31, 2022
	Foreign Currencies (Thousands)		Exchange Rate		New Taiwan Dollars (Thousands)
Assets denominated in foreign currencies
Monetary items
USD	$	76,675		30.71	$	2,354,691
EUR		2,740		32.72		89,645
SGD		27,384		22.88		626,538
Non-monetary items
Investments accounted for using equity method
SGD		10,787		22.88		246,815
VND		434,655,397		0.0013		558,532
Liabilities denominated in foreign currencies
Monetary items
USD		27,753		30.71		852,302
EUR		26,750		32.72		875,256
SGD		87,861		22.88		2,010,250

	March 31, 2022
	Foreign Currencies (Thousands)		Exchange Rate		New Taiwan Dollars (Thousands)
Assets denominated in foreign currencies
Monetary items
USD	$	66,858		28.63	$	1,913,819
EUR		1,581		31.92		50,475
SGD		5,730		21.16		121,252
Non-monetary items
Investments accounted for using equity method
SGD		26,801		21.16		567,103
VND		381,139,399		0.0012		470,707
Liabilities denominated in foreign currencies
Monetary items
USD		30,029		28.63		859,584
EUR		21,762		31.92		694,643
SGD		94,050		21.16		1,990,100

The unrealized foreign currency exchange losses were $3,814 thousand and $86,776 thousand for the three months ended March 31, 2023 and 2022, respectively. Due to the various foreign currency transactions and the functional currency of each individual entity of the Company, foreign exchange gains and losses cannot be disclosed by the respective significant foreign currency.

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42. ADDITIONAL DISCLOSURES

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

a. Financing provided: None.

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

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

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

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

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

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

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

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

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

k. Investments in Mainland China: Please see Table 6.

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

m. Information of main stakeholders: Please see Table 8.

43. SEGMENT INFORMATION

In response to changes in the operating environment and new business challenges, the Company launched its organizational transformation and redesigned the operational decision-making processes and the performance assessment under the new structure. The aforementioned organizational transformation was effective from January 1, 2022. The Company redefined the reportable segments as “Consumer Business”, “Enterprise Business”, “International Business” and “Others”. The reportable segments are managed separately because each segment represents a strategic business unit that serves different customers. Segment information is provided to the CEO 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.

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Segment Revenues and Operating Results

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

	Consumer Business		Enterprise Business		International Business		Others		Total
Three months ended March 31, 2023
Revenues
From external customers	$	34,054,760	$	17,104,731	$	2,129,931	$	921,483	$	54,210,905
Intersegment revenues		646,099		207,185		221,559		66,352		1,141,195
Segment revenues	$	34,700,859	$	17,311,916	$	2,351,490	$	987,835		55,352,100
Intersegment elimination										(1,141,195	)
Consolidated revenues									$	54,210,905
Segment income before income tax	$	7,470,862	$	3,954,358	$	512,773	$	322,000	$	12,259,993
Three months ended March 31, 2022
Revenues
From external customers	$	32,715,489	$	15,811,959	$	1,714,226	$	1,053,065	$	51,294,739
Intersegment revenues		408,344		263,608		179,244		82,124		933,320
Segment revenues	$	33,123,833	$	16,075,567	$	1,893,470	$	1,135,189		52,228,059
Intersegment elimination										(933,320	)
Consolidated revenues									$	51,294,739
Segment income before income tax	$	7,236,214	$	3,805,907	$	449,464	$	182,808	$	11,674,393

Main Products and Service Revenues

	Three Months Ended March 31
	2023		2022
Consumer Business
Mobile services	$	13,522,073	$	12,618,195
Fixed-line services		10,597,721		10,618,374
Sales		9,381,786		8,988,287
Others		553,180		490,633
		34,054,760		32,715,489
Enterprise Business
Fixed-line services		8,389,231		8,524,458
ICT business		5,139,486		4,059,205
Mobile services		2,172,944		2,170,008
Others		1,403,070		1,058,288
		17,104,731		15,811,959
International Business
Fixed-line services		1,338,888		1,226,438
ICT business		545,499		368,328
Others		245,544		119,460
		2,129,931		1,714,226
Others
Sales		705,410		863,190
Others		216,073		189,875
		921,483		1,053,065
	$	54,210,905	$	51,294,739

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TABLE 1

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED

THREE MONTHS ENDED MARCH 31, 2023

(Amounts in Thousands of New Taiwan Dollars)

No. (Note 1)	Endorsement/ Guarantee Provider	Guaranteed Party		Limits on Endorsement/ Guarantee Amount Provided to Each Guaranteed Party		Maximum Balance for the Period		Ending Balance		Actual Borrowing Amount		Amount of Endorsement/ Guarantee Collateralized by Properties		Ratio of Accumulated Endorsement/ Guarantee to Net Equity Per Latest Financial Statements		Maximum Endorsement/ Guarantee Amount Allowable		Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China	Note
		Name	Nature of Relationship (Note 2)
1	Senao International Co., Ltd.	Aval Technologies Co., Ltd.	b	$	593,584	$	300,000	$	300,000	$	300,000	$	—		5.05	$	2,967,923	Yes	No	No	Notes 3 and 4
		Wiin Technology Co., Ltd.	b		593,584		200,000		200,000		200,000		—		3.37		2,967,923	Yes	No	No	Notes 3 and 4

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

a. “0” for the Company.

b. Subsidiaries are numbered from “1”.

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

a. A company with which it does business.

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

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

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

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

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

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

Note 3: The limits on endorsement or guarantee amount provided to each guaranteed party is up to 10% of the net assets value of the latest financial statements of Senao International Co., Ltd.

Note 4: The total amount of endorsement or guarantee that the Company is allowed to provide is up to 50% of the net assets value of the latest financial statements of Senao International Co., Ltd.

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TABLE 2

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

MARKETABLE SECURITIES HELD

MARCH 31, 2023

(Amounts in Thousands of New Taiwan Dollars)

Held Company Name	Marketable Securities Type and Name	Relationship with the Company	Financial Statement Account	March 31, 2023								Note
				Shares (Thousands/ Thousand Units)		Carrying Value (Note 1)		Percentage of Ownership		Fair Value
Chunghwa Telecom Co., Ltd.	Stocks
	Taipei Financial Center Corp.	—	Financial assets at FVOCI		172,927	$	3,511,456		12	$	3,511,456	—
	Innovation Works Development Fund, L.P.	—	Financial assets at FVTPL - noncurrent		—		97,677		4		97,677	—
	Industrial Bank of Taiwan II Venture Capital Co., Ltd. (IBT II)	—	Financial assets at FVOCI		5,252		17,255		17		17,255	—
	Global Mobile Corp.	—	Financial assets at FVOCI		7,617		—		3		—	—
	Innovation Works Limited	—	Financial assets at FVOCI		1,000		2,369		2		2,369	—
	RPTI Intergroup International Ltd.	—	Financial assets at FVOCI		4,765		—		10		—	—
	Taiwan mobile payment Co., Ltd.	—	Financial assets at FVOCI		1,200		4,258		2		4,258	—
	Taiwania Capital Buffalo Fund Co., Ltd.	—	Financial assets at FVTPL - noncurrent		555,600		534,873		13		534,873	—
	4 Gamers Entertainment Inc.	—	Financial assets at FVOCI		136		138,797		19.9		138,797	—
	TOP TAIWAN XIV VENTURE CAPITAL CO., LTD.	—	Financial assets at FVTPL - noncurrent		20,000		189,723		9		189,723	—
	Limited partnership
	Taiwania Capital Buffalo Fund VI, L.P.	—	Financial assets at FVTPL - noncurrent		—		189,268		10		189,268	—
Senao International Co., Ltd.	Stocks
	N.T.U. Innovation Incubation Corporation	—	Financial assets at FVOCI		1,200		10,039		9		10,039	—
CHIEF Telecom Inc.	Stocks
	3 Link Information Service Co., Ltd.	—	Financial assets at FVOCI		374		1,204		10		1,204	—
	WPG Holdings Limited	—	Financial assets at FVTPL - current		9		442		—		442	Note 2
	WPG Holdings Limited	—	Financial assets at FVOCI		2,102		103,734		—		103,734	Note 2
	WT Microelectronics Co., Ltd.	—	Financial assets at FVOCI		361		17,761		—		17,761	Note 2
Chunghwa Investment Co., Ltd.	Stocks
	Tatung Technology Inc.	—	Financial assets at FVOCI		4,571		46,737		11		46,737	—
	iSing99 Inc.	—	Financial assets at FVOCI		10,000		—		7		—	—
	Powtec ElectroChemical Corporation	—	Financial assets at FVOCI		20,000		—		2		—	—
	Bossdom Digiinnovation Co., Ltd.	—	Financial assets at FVOCI		2,200		53,680		7		53,680	Note 2
	PChome Online Inc.	—	Financial assets at FVOCI		1,875		116,831		1		116,831	Note 2
	Limited partnership
	Taiwania Capital Buffalo Fund V, L.P.	—	Financial assets at FVTPL - noncurrent		—		38,881		3		38,881	—
CHT Security Co., Ltd.	Stocks
	TXOne Networks Inc.	—	Financial assets at FVOCI		91		16,092		—		16,092	—

Note 1: Showed at carrying amounts with fair value adjustments.

Note 2: Fair value was based on the closing price on March 31, 2023.

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TABLE 3

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

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

THREE MONTHS ENDED MARCH 31, 2023

(Amounts in Thousands of New Taiwan Dollars)

Company Name	Related Party	Nature of Relationship	Transaction Details						Abnormal Transaction				Notes / Accounts Payable or Receivable
			Purchases/Sales (Note 1)	Amount (Note 4)		% to Total		Payment Terms	Unit Price		Payment Terms		Ending Balance (Notes 2 and 4)			% to Total
Chunghwa Telecom Co., Ltd.	Senao International Co., Ltd.	Subsidiary	Sales	$	1,173,748		3	30 days	$	—		—	$	98,413			1
			Purchase		267,550		1	30-90 days		—		—		(1,112,319	)		(11	)
	Aval Technologies Co., Ltd.	Subsidiary	Purchase		146,120		1	30 days		—		—		(19,651	)		—
	CHIEF Telecom Inc.	Subsidiary	Sales		118,083		—	30 days		—		—		55,815			—
	Chunghwa System Integration Co., Ltd.	Subsidiary	Purchase		359,972		1	30 days		—		—		(437,975	)		(4	)
	Honghwa International Co., Ltd.	Subsidiary	Purchase		1,705,456		6	30-60 days		—		—		(818,117	)		(8	)
	Donghwa Telecom Co., Ltd.	Subsidiary	Purchase		131,397		—	90 days		—		—		(89,205	)		(1	)
	CHT Security Co., Ltd.	Subsidiary	Purchase		176,612		1	30 days		—		—		(55,782	)		(1	)
	International Integrated Systems, Inc.	Subsidiary	Purchase		146,323		1	30 days		—		—		(92,924	)		(1	)
	Taiwan International Standard Electronics Co., Ltd.	Associate	Purchase		201,006		1	30-90 days		—		—		(202,111	)		(2	)
Senao International Co., Ltd.	Aval Technologies Co., Ltd.	Subsidiary	Sales		127,657		2	60 days		—		—		87,660			5

Note 1: Purchases include costs to acquire services.

Note 2: Notes and accounts receivable did not include the amounts collected for others and other receivables.

Note 3: Transaction terms with related parties were determined in accordance with mutual agreements when there were no similar transactions with third parties. Other transactions with related parties were not significantly different from those with third parties.

Note 4: All intercompany transactions, balances, income and expenses are eliminated upon consolidation.

- 76 -

TABLE 4

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

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

MARCH 31, 2023

(Amounts in Thousands of New Taiwan Dollars)

Company Name	Related Party	Nature of Relationship	Ending Balance			Turnover Rate (Note 1)		Overdue				Amounts Received in Subsequent Period		Allowance for Bad Debts
								Amounts		Action Taken
Chunghwa Telecom Co., Ltd.	Senao International Co., Ltd.	Subsidiary	$	220,188 (Note 2	)		13.83	$	—		—	$	64,416	$	—
Senao International Co., Ltd.	Chunghwa Telecom Co., Ltd.	Parent company		1,302,367 (Note 2	)		7.47		—		—		638,587		—
Chunghwa System Integration Co., Ltd.	Chunghwa Telecom Co., Ltd.	Parent company		437,975 (Note 2	)		2.98		—		—		119,082		—
Honghwa International Co., Ltd.	Chunghwa Telecom Co., Ltd.	Parent company		828,388 (Note 2	)		7.98		—		—		125,138		—

Note 1: Payments and receipts collected in trust for others are excluded from the accounts receivable in calculating the turnover rate.

Note 2: The amount was eliminated upon consolidation.

- 77 -

TABLE 5

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

NAMES, LOCATIONS, AND OTHER INFORMATION OF INVESTEES IN WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE (EXCLUDING INVESTMENT IN MAINLAND CHINA)

THREE MONTHS ENDED MARCH 31, 2023

(Amounts in Thousands of New Taiwan Dollars)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount				Balance as of March 31, 2023							Net Income (Loss) of the Investee			Recognized Gain (Loss) (Notes 1, 2 and 3)			Note
				March 31, 2023		December 31, 2022		Shares (Thousands)		Percentage of Ownership (%)		Carrying Value (Note 3)
Chunghwa Telecom Co., Ltd.	Senao International Co., Ltd.	Taiwan	Handset and peripherals retailer; sales of CHT mobile phone plans as an agent	$	1,065,813	$	1,065,813		71,773		28	$	1,622,175		$	196,886		$	53,411		Subsidiary (Note 5)
	Light Era Development Co., Ltd.	Taiwan	Planning and development of real estate and intelligent buildings, and property management		3,000,000		3,000,000		300,000		100		3,841,703			653			1,962		Subsidiary (Note 5)
	Donghwa Telecom Co., Ltd.	Hong Kong	International private leased circuit, IP VPN service, and IP transit services		691,163		691,163		178,590		100		710,085			12,964			12,964		Subsidiary (Note 5)
	Chunghwa Telecom Singapore Pte., Ltd.	Singapore	International private leased circuit, IP VPN service, and IP transit services		574,112		574,112		26,383		100		1,141,891			48,178			48,188		Subsidiary (Note 5)
	Chunghwa System Integration Co., Ltd.	Taiwan	Providing system integration services and telecommunications equipment		838,506		838,506		60,000		100		725,794			4,184			7,664		Subsidiary (Note 5)
	CHIEF Telecom Inc.	Taiwan	Network integration, internet data center (“IDC”), communications integration and cloud application services		459,652		459,652		39,426		56		1,757,247			224,376			128,378		Subsidiary (Note 5)
	Chunghwa Investment Co., Ltd.	Taiwan	Investment		639,559		639,559		68,085		89		3,180,401			(13,606	)		(12,067	)	Subsidiary (Note 5)
	Prime Asia Investments Group Ltd.	British Virgin Islands	Investment		385,274		385,274		1		100		162,619			(1,155	)		(1,155	)	Subsidiary (Note 5)
	Honghwa International Co., Ltd.	Taiwan	Telecommunication engineering, sales agent of mobile phone plan application and other business services, etc.		180,000		180,000		18,000		100		899,047			157,346			159,539		Subsidiary (Note 5)
	CHYP Multimedia Marketing & Communications Co., Ltd.	Taiwan	Digital information supply services and advertisement services		150,000		150,000		15,000		100		207,058			2,814			2,870		Subsidiary (Note 5)
	Chunghwa Telecom Vietnam Co., Ltd.	Vietnam	Intelligent energy saving solutions, international circuit, and information and communication technology (“ICT”) services		148,275		148,275		—		100		102,159			(542	)		(542	)	Subsidiary (Note 5)
	Chunghwa Telecom Global, Inc.	United States	International private leased circuit, internet services, and transit services		70,429		70,429		6,000		100		611,970			19,785			19,861		Subsidiary (Note 5)
	CHT Security Co., Ltd.	Taiwan	Computing equipment installation, wholesale of computing and business machinery equipment and software, management consulting services, data processing services, digital information supply services and internet identify services		240,000		240,000		24,000		71		461,322			71,521			47,389		Subsidiary (Note 5)
	Chunghwa Telecom (Thailand) Co., Ltd.	Thailand	International private leased circuit, IP VPN service, ICT and cloud VAS services		119,624		119,624		1,300		100		124,723			9,740			9,740		Subsidiary (Note 5)
	Spring House Entertainment Tech. Inc.	Taiwan	Software design services, internet contents production and play, and motion picture production and distribution		62,209		62,209		8,251		56		163,819			9,658			5,412		Subsidiary (Note 5)
	Chunghwa leading Photonics Tech Co., Ltd.	Taiwan	Production and sale of electronic components and finished products		70,500		70,500		7,050		75		153,055			3,978			2,984		Subsidiary (Note 5)
	Smartfun Digital Co., Ltd.	Taiwan	Providing diversified family education digital services		65,000		65,000		6,500		65		84,204			3,578			2,441		Subsidiary (Note 5)
	Chunghwa Telecom Japan Co., Ltd.	Japan	International private leased circuit, IP VPN service, and IP transit services		17,291		17,291		1		100		127,479			5,032			5,032		Subsidiary (Note 5)
	Chunghwa Sochamp Technology Inc.	Taiwan	Design, development and production of Automatic License Plate Recognition software and hardware		20,400		20,400		2,040		37		(3,763	)		(4,083	)		(1,546	)	Subsidiary (Note 5)
	International Integrated Systems, Inc.	Taiwan	IT solution provider, IT application consultation, system integration and package solution		517,423		517,423		37,211		51		644,648			3,161			2,063		Subsidiary (Note 5)
	Viettel-CHT Co., Ltd.	Vietnam	IDC services		288,327		288,327		—		30		587,080			95,115			28,547		Associate

(Continued)

- 78 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

NAMES, LOCATIONS, AND OTHER INFORMATION OF INVESTEES IN WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE (EXCLUDING INVESTMENT IN MAINLAND CHINA)

THREE MONTHS ENDED MARCH 31, 2023

(Amounts in Thousands of New Taiwan Dollars)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount				Balance as of March 31, 2023						Net Income (Loss) of the Investee			Recognized Gain (Loss) (Notes 1, 2 and 3)			Note
				March 31, 2023		December 31, 2022		Shares (Thousands)		Percentage of Ownership (%)		Carrying Value (Note 3)
	Taiwan International Standard Electronics Co., Ltd.	Taiwan	Manufacturing, selling, designing, and maintaining of telecommunications systems and equipment	$	164,000	$	164,000		1,760		40	$	347,207	$	98,276		$	40,895		Associate
	KKBOX Taiwan Co., Ltd.	Taiwan	Providing of music on-line, software, electronic information, and advertisement services		67,025		67,025		4,438		30		175,395		5,868			1,760		Associate
	So-net Entertainment Taiwan Limited	Taiwan	Online service and sale of computer hardware		120,008		120,008		9,429		30		226,233		(7,684	)		(2,305	)	Associate
	KingwayTek Technology Co., Ltd.	Taiwan	Design and sale of digital map, technical support for computer peripherals device, design and development of system programming projects		66,684		66,684		10,512		23		271,174		17,555			4,049		Associate
	Taiwan International Ports Logistics Corporation	Taiwan	Import and export storage, logistic warehouse, and ocean shipping service		80,000		80,000		8,000		27		109,184		30,396			8,107		Associate
	Chunghwa PChome Fund I Co., Ltd.	Taiwan	Investment, venture capital, investment advisor, management consultant and other consultancy service		200,000		200,000		20,000		50		276,539		(2,474	)		(1,237	)	Associate
	Cornerstone Ventures Co., Ltd.	Taiwan	Investment, venture capital, investment advisor, management consultant and other consultancy service		4,900		4,900		490		49		6,945		413			203		Associate
	Next Commercial Bank Co., Ltd.	Taiwan	Online banking business		4,190,000		4,190,000		419,000		42		3,077,942		(230,899	)		(95,202	)	Associate
	Chunghwa SEA Holdings	Taiwan	Investment business		10,200		10,200		1,020		51		9,602		(148	)		(75	)	Joint venture
	WiAdvance Technology Corporation	Taiwan	Software solution integration		273,800		273,800		3,700		20		221,235		(25,406	)		(6,633	)	Associate
Senao International Co., Ltd.	Senao Networks, Inc.	Taiwan	Telecommunication facilities manufactures and sales		202,758		202,758		16,579		34		1,480,401		252,275			85,251		Associate
	Senao International (Samoa) Holding Ltd.	Samoa Islands	International investment		2,046,143		2,046,143		1,191		100		36,616		73			73		Subsidiary (Note 5)
	Youth Co., Ltd.	Taiwan	Sale of information and communication technologies products		427,850		427,850		14,752		96		179,035		751			(1,309	)	Subsidiary (Note 5)
	Aval Technologies Co., Ltd.	Taiwan	Sale of information and communication technologies products		89,550		89,550		11,660		100		131,604		2,042			2,044		Subsidiary (Note 5)
	Senyoung Insurance Agent Co., Ltd.	Taiwan	Property and liability insurance agency		59,000		59,000		5,900		100		108,366		7,549			7,549		Subsidiary (Note 5)
CHIEF Telecom Inc.	Unigate Telecom Inc.	Taiwan	Telecommunications and internet service		2,000		2,000		200		100		1,244		30			30		Subsidiary (Note 5)
	Chief International Corp.	Samoa Islands	Telecommunications and internet service		6,068		6,068		200		100		103,348		2,544			2,544		Subsidiary (Note 5)
Chunghwa Telecom Singapore Pte., Ltd.	ST-2 Satellite Ventures Pte., Ltd.	Singapore	Operation of ST-2 telecommunications satellite		21,309		21,309		943		38		273,844		118,556			45,051		Associate
	CHT Infinity Singapore Pte. Ltd.	Singapore	Investment business		55,720		55,720		2,000		40		59,755		(2,856	)		(1,143	)	Associate
Chunghwa Investment Co., Ltd.	Chunghwa Precision Test Tech. Co., Ltd.	Taiwan	Production and sale of semiconductor testing components and printed circuit board		178,608		178,608		11,230		34		2,689,501		(30,789	)		(10,545	)	Subsidiary (Note 5)
	CHIEF Telecom Inc.	Taiwan	Network integration, internet data center (“IDC”), communications integration and cloud application services		19,064		19,064		2,078		3		85,250		224,376			6,591		Associate (Note 5)
	Senao International Co., Ltd.	Taiwan	Selling and maintaining mobile phones and its peripheral products		49,731		49,731		1,001		—		43,752		196,886			763		Associate (Note 5)
	AgriTalk Technology Inc.	Taiwan	Providing smart agricultural solutions, scientific agricultural product, biological inhibitor, and biochips		65,175		65,175		3,300		29		33,698		(3,884	)		(1,040	)	Associate
	Imedtac Co., Ltd.	Taiwan	Providing medical AIoT solution, biomedical engineering services, and sales of medical device as an agent		48,000		48,000		960		7		39,848		(10,871	)		(1,018	)	Associate

(Continued)

- 79 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

NAMES, LOCATIONS, AND OTHER INFORMATION OF INVESTEES IN WHICH THE COMPANY EXERCISES SIGNIFICANT INFLUENCE (EXCLUDING INVESTMENT IN MAINLAND CHINA)

THREE MONTHS ENDED MARCH 31, 2023

(Amounts in Thousands of New Taiwan Dollars)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount				Balance as of March 31, 2023						Net Income (Loss) of the Investee			Recognized Gain (Loss) (Notes 1, 2 and 3)			Note
				March 31, 2023		December 31, 2022		Shares (Thousands)		Percentage of Ownership (%)		Carrying Value (Note 3)
Chunghwa Precision Test Tech. Co., Ltd.	Chunghwa Precision Test Tech USA Corporation	United States	Design and after-sale services of semiconductor testing components and printed circuit board	$	74,192	$	74,192		2,600		100	$	100,383	$	1,524		$	1,524		Subsidiary (Note 5)
	CHPT Japan Co., Ltd.	Japan	Related services of electronic parts, machinery processed products and printed circuit board		2,008		2,008		1		100		2,247		27			27		Subsidiary (Note 5)
	Chunghwa Precision Test Tech. International, Ltd.	Samoa Islands	Wholesale and retail of electronic materials, and investment		173,649		173,649		5,700		100		157,152		5,597			5,777		Subsidiary (Note 5)
	TestPro Investment Co., Ltd.	Taiwan	Investment		135,000		135,000		13,500		100		90,888		(7,898	)		(7,534	)	Subsidiary (Note 5)
TestPro Investment Co., Ltd.	NavCore Tech. Co., Ltd	Taiwan	Sale and manufacturing of smart equipment, smart factory software and hardware integration and technical consulting service		108,500		108,500		10,850		54		84,800		(14,547	)		(7,892	)	Subsidiary (Note 5)
Prime Asia Investments Group, Ltd.	Chunghwa Hsingta Co., Ltd.	Hong Kong	Investment		375,274		375,274		1		100		162,619		(1,155	)		(1,155	)	Subsidiary (Note 5)
Senao International (Samoa) Holding Ltd.	Senao International HK Limited	Hong Kong	International investment		2,060,467		2,060,467		80,440		100		33,924		—			—		Subsidiary (Note 5)
Youth Co., Ltd.	ISPOT Co., Ltd.	Taiwan	Sale of information and communication technologies products		53,021		53,021		—		100		14,857		774			726		Subsidiary (Note 5)
	Youyi Co., Ltd.	Taiwan	Maintenance of information and communication technologies products		21,354		21,354		—		100		5,157		26			7		Subsidiary (Note 5)
Aval Technologies Co., Ltd.	Wiin Technology Co., Ltd.	Taiwan	Sale of information and communication technologies products		29,550		29,550		3,845		100		46,549		739			739		Subsidiary (Note 5)
Senyoung Insurance Agent Co., Ltd.	Senaolife Insurance Agent Co., Ltd.	Taiwan	Life insurance services		29,500		29,500		2,950		100		21,605		(199	)		(199	)	Subsidiary (Note 5)
CHYP Multimedia Marketing & Communications Co., Ltd	Click Force Marketing Company	Taiwan	Advertisement services		44,607		44,607		1,401		49		41,509		1,178			577		Associate
International Integrated Systems, Inc.	Infoexplorer International Co., Ltd.	Samoa	Investment		24,806		24,806		795		100		28,673		24			24		Subsidiary (Note 5)
	Unitronics Technology Corp.	Taiwan	Development and maintenance of information system		55,569		55,569		5,065		99.96		84,100		1,065			1,065		Subsidiary (Note 5)
Infoexplorer International Co., Ltd.	International Integrated Systems (Hong Kong) Limited	Hong Kong	Investment and engaging in technical consulting service		24,336		24,336		780		100		28,666		24			24		Subsidiary (Note 5)
CHT Security Co., Ltd.	Baohwa Trust Co., Ltd.	Taiwan	VR integration and AIoT security services		20,000		20,000		2,000		40		10,588		(6,698	)		(2,679	)	Subsidiary

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

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

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

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

Note 5: The amount was eliminated upon consolidation.

(Concluded)

- 80 -

TABLE 6

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

INVESTMENTS IN MAINLAND CHINA

THREE MONTHS ENDED MARCH 31, 2023

(Amounts in Thousands of New Taiwan Dollars)

Investee	Main Businesses and Products	Total Amount of Paid-in Capital		Investment Type (Note 1)		Accumulated Outflow of Investment from Taiwan  as of January 1, 2023		Investment Flows				Accumulated Outflow of Investment from Taiwan as of March 31, 2023		Net Income (Loss) of the Investee			% Ownership of Direct or Indirect Investment		Investment Gain (Loss) (Note 2)			Carrying Value as of March 31, 2023		Accumulated Inward Remittance of Earnings as of March 31, 2023		Note
								Outflow		Inflow
Senao International Trading (Shanghai) Co., Ltd.	Sale of information and communication technologies products	$	955,838		2	$	955,838	$	—	$	—	$	955,838	$	—			100	$	—		$	—	$	—		Notes 7 and 10
Chunghwa Telecom (China) Co., Ltd.	Integrated information and communication solution services for enterprise clients, and intelligent energy network service		177,176		2		177,176		—		—		177,176		—			100		—			—		—		Notes 8 and 10
Jiangsu Zhenghua Information Technology Company, LLC	Providing intelligent energy saving solution and intelligent buildings services		189,410		2		142,057		—		—		142,057		—			75		—			—		—		Notes 9 and 10
Shanghai Taihua Electronic Technology Limited	Design of printed circuit board and related consultation service		51,233		2		51,233		—		—		51,233		(299	)		100		(299	)		8,978		—		Note 10
Su Zhou Precision Test Tech. Ltd.	Assembly processed of circuit board, design of printed circuit board and related consultation service		119,199		2		119,199		—		—		119,199		5,870			100		5,870			169,574		—		Note 10
Shanghai Chief Telecom Co., Ltd.	Telecommunications and internet service		10,150		1		4,973		—		—		4,973		34			49		17			9,122		5,418		Note 10

(Continued)

- 81 -

Investee	Accumulated Investment in Mainland China as of March 31, 2023		Investment Amounts Authorized by Investment Commission, MOEA		Upper Limit on Investment Stipulated by Investment Commission, MOEA
SENAO and its subsidiaries (Note 3)	$	955,838	$	2,047,858	$	3,568,372
Chunghwa Telecom (China) Co., Ltd. (Note 4)		177,176		177,176		242,094,878
Jiangsu Zhenghua Information Technology Company, LLC (Note 4)		142,057		142,057		242,094,878
Chunghwa Precision Test Tech Co., Ltd and its subsidiaries (Note 5)		170,432		216,185		4,753,110
Shanghai Chief Telecom Co., Ltd. (Note 6)		4,973		4,973		1,747,075

Note 1: Investments are divided into three categories as follows:

a. Direct investment.

b. Investments through a holding company registered in a third region.

c. Others.

Note 2: The amounts were calculated based on the investee’s reviewed financial statements.

Note 3: Senao International Co., Ltd. and its subsidiaries were calculated based on the consolidated net assets value of Senao International Co., Ltd.

Note 4: Chunghwa Telecom (China) Co., Ltd. and Jiangsu Zhenghua Information Technology Company, LLC were calculated based on the consolidated net assets value of Chunghwa Telecom Co., Ltd.

Note 5: Chunghwa Precision Test Tech. Co., Ltd. and its subsidiaries were calculated based on the consolidated net assets value of Chunghwa Precision Test Tech. Co., Ltd

Note 6: Shanghai Chief Telecom Co., Ltd. was calculated based on the consolidated net assets value of CHIEF Telecom Inc.

Note 7: Senao International Trading (Shanghai) Co., Ltd. completed its liquidation in April 2021.

Note 8: Chunghwa Telecom (China) Co., Ltd. completed its liquidation in October 2022.

Note 9: Jiangsu Zhenhua Information Technology Company, LLC. completed its liquidation in December 2018.

Note 10: The amount was eliminated upon consolidation.

(Concluded)

- 82 -

TABLE 7

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT TRANSACTIONS

THREE MONTHS ENDED MARCH 31, 2023

(Amounts in Thousands of New Taiwan Dollars)

Year	No. (Note 1)	Company Name	Related Party	Nature of Relationship (Note 2)	Transaction Details
					Financial Statement Account	Amount (Note 5)		Payment Terms (Note 3)		% to Total Sales or Assets  (Note 4)
2023	0	Chunghwa Telecom Co., Ltd.	Senao International Co., Ltd.	a	Accrued custodial receipts	$	121,775		—		—
					Accounts payable		1,112,319		—		—
					Amounts collected for others		189,585		—		—
					Revenues		1,173,748		—		2
					Operating costs and expenses		267,477		—		—
			CHIEF Telecom Inc.	a	Revenues		118,083		—		—
			Chunghwa System Integration Co., Ltd.	a	Accounts payable		437,975		—		—
					Operating costs and expenses		280,571		—		1
			Donghwa Telecom Co., Ltd.	a	Operating costs and expenses		131,397		—		—
			Honghwa International Co., Ltd.	a	Accounts payable		818,117		—		—
					Operating costs and expenses		1,705,456		—		3
			CHT Security Co., Ltd.	a	Operating costs and expenses		105,682		—		—
			International Integrated Systems, Inc.	a	Operating costs and expenses		142,523		—		—
			Aval Technologies Co., Ltd.	a	Operating costs and expenses		146,120		—		—

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

a. “0” for the Company.

b. Subsidiaries are numbered from “1”.

Note 2: Related party transactions are divided into three categories as follows:

a. The Company to subsidiaries.

b. Subsidiaries to the Company.

c. Subsidiaries to subsidiaries.

Note 3: Transaction terms with the related parties were determined in accordance with mutual agreements when there were no similar transactions with third parties. Other transactions with related parties were not significantly different from those with third parties.

Note 4: For assets and liabilities, amount is shown as a percentage to consolidated total assets as of March 31, 2023, while revenues, costs and expenses are shown as a percentage to consolidated revenues for the three months ended March 31, 2023.

Note 5: The amount was eliminated upon consolidation.

- 83 -

TABLE 8

CHUNGHWA TELECOM CO., LTD.

INFORMATION OF MAJOR STOCKHOLDERS

MARCH 31, 2023

Name of Major Stockholders	Shares
	Number of Shares		Percentage of Ownership (%)
Ministry of Transportation and Communications		2,737,718,976		35.29
Shin Kong Life Insurance Co., Ltd.		397,895,184		5.12

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

- 84 -

EX-99.3

Exhibit 99.3

Chunghwa Telecom Co., Ltd. and Subsidiaries

Consolidated Financial Statements for the

Three Months Ended March 31, 2023 and 2022

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Millions of New Taiwan Dollars)

	March 31, 2023 (Unaudited)				December 31, 2022 (Audited)					March 31, 2022 (Unaudited)
	Amount		%		Amount			%		Amount			%
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	38,716		7	$	50,193			10	$	46,500			10
Financial assets at fair value through profit or loss		4		—		4			—		3			—
Hedging financial assets		1		—		13			—		8			—
Contract assets		6,124		1		6,056			1		5,540			1
Trade notes and accounts receivable, net		20,990		4		24,672			5		21,070			4
Receivables from related parties		48		—		75			—		39			—
Inventories		12,024		2		11,316			2		12,513			2
Prepayments		5,484		1		2,398			—		5,281			1
Other current monetary assets		19,981		4		3,619			1		6,759			1
Other current assets		3,842		1		3,555			1		3,352			1
Total current assets		107,214		20		101,901			20		101,065			20
NONCURRENT ASSETS
Financial assets at fair value through profit or loss		1,074		—		1,020			—		806			—
Financial assets at fair value through other
comprehensive income		4,040		1		3,491			1		3,574			1
Investments accounted for using equity method		7,035		1		6,949			1		7,263			1
Contract assets		3,345		1		3,137			1		2,756			1
Property, plant and equipment		289,265		56		291,528			56		285,931			54
Right-of-use assets		11,094		2		11,103			2		10,744			2
Investment properties		8,993		2		9,804			2		9,652			2
Intangible assets		77,557		15		79,187			15		82,328			16
Deferred income tax assets		2,154		—		2,197			—		2,761			1
Incremental costs of obtaining contracts		955		—		980			—		967			—
Net defined benefit assets		5,429		1		5,266			1		3,582			1
Prepayments		1,695		—		1,728			—		1,821			—
Other noncurrent assets		4,473		1		4,705			1		4,924			1
Total noncurrent assets		417,109		80		421,095			80		417,109			80
TOTAL	$	524,323		100	$	522,996			100	$	518,174			100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term loans	$	342		—	$	722			—	$	65			—
Contract liabilities		12,898		2		13,390			3		12,701			2
Trade notes and accounts payable		9,973		2		16,429			3		11,823			2
Payables to related parties		278		—		539			—		214			—
Current tax liabilities		9,732		2		6,999			1		9,258			2
Lease liabilities		3,319		1		3,339			1		2,995			1
Other payables		21,965		4		25,080			5		21,665			4
Provisions		223		—		226			—		251			—
Other current liabilities		974		—		1,016			—		1,027			—
Total current liabilities		59,704		11		67,740			13		59,999			11
NONCURRENT LIABILITIES
Long-term loans		1,600		—		1,600			—		1,600			—
Bonds payable		30,479		7		30,477			6		30,473			7
Contract liabilities		7,665		2		7,674			2		6,901			1
Deferred income tax liabilities		2,336		—		2,301			—		2,197			—
Provisions		465		—		173			—		141			—
Lease liabilities		7,244		2		7,334			2		6,909			1
Customers’ deposits		5,012		1		5,157			1		4,916			1
Net defined benefit liabilities		2,267		—		2,285			—		2,291			1
Other noncurrent liabilities		6,759		1		6,726			1		4,993			1
Total noncurrent liabilities		63,827		13		63,727			12		60,421			12
Total liabilities		123,531		24		131,467			25		120,420			23
EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE PARENT
Common stocks		77,574		15		77,574			15		77,574			15
Additional paid-in capital		149,853		29		149,844			29		149,823			29
Retained earnings
Legal reserve		77,574		15		77,574			15		77,574			15
Special reserve		3,084		—		3,084			1		2,676			1
Unappropriated earnings		80,448		15		71,268			13		78,739			15
Total retained earnings		161,106		30		151,926			29		158,989			31
Others		267		—		(223	)		—		(363	)		—
Total equity attributable to stockholders of the parent		388,800		74		379,121			73		386,023			75
NONCONTROLLING INTERESTS		11,992		2		12,408			2		11,731			2
Total equity		400,792		76		391,529			75		397,754			77
TOTAL	$	524,323		100	$	522,996			100	$	518,174			100

- 1 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

(Unaudited)

	Three Months Ended March 31
	2023					2022
	Amount			%		Amount			%
REVENUES	$	54,211			100	$	51,295			100
OPERATING COSTS		33,630			62		31,691			62
GROSS PROFIT		20,581			38		19,604			38
OPERATING EXPENSES
Marketing		5,672			11		5,445			10
General and administrative		1,657			3		1,548			3
Research and development		978			2		849			2
Expected credit loss		100			—		101			—
Total operating expenses		8,407			16		7,943			15
OTHER INCOME AND EXPENSES		—			—		(1	)		—
INCOME FROM OPERATIONS		12,174			22		11,660			23
NON-OPERATING INCOME AND EXPENSES
Interest income		118			—		24			—
Other income		45			—		44			—
Other gains and losses		(104	)		—		(109	)		—
Interest expense		(76	)		—		(56	)		—
Share of profits of associates and joint ventures accounted for using equity method		97			—		105			—
Total non-operating income and expenses		80			—		8			—
INCOME BEFORE INCOME TAX		12,254			22		11,668			23
INCOME TAX EXPENSE		2,832			5		2,775			6
NET INCOME		9,422			17		8,893			17
TOTAL OTHER COMPREHENSIVE INCOME (LOSS)
Items that will not be reclassified to profit or loss:
Unrealized gain or loss on investments in equity instruments at fair value through other comprehensive income		549			1		(45	)		—
Gain or loss on hedging instruments subject to basis adjustment		(12	)		—		16			—

(Continued)

- 2 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

(Unaudited)

	Three Months Ended March 31
	2023					2022
	Amount			%		Amount			%
Share of other comprehensive income of associates and joint ventures	$	10			—	$	2			—
		547			1		(27	)		—
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising from the translation of the foreign operations		(47	)		—		77			—
Share of other comprehensive loss of associates and joint ventures		(1	)		—		—			—
		(48	)		—		77			—
Total other comprehensive income, net of income tax		499			1		50			—
TOTAL COMPREHENSIVE INCOME	$	9,921			18	$	8,943			17
NET INCOME ATTRIBUTABLE TO
Stockholders of the parent	$	9,170			17	$	8,580			17
Noncontrolling interests		252			—		313			—
	$	9,422			17	$	8,893			17
COMPREHENSIVE INCOME ATTRIBUTABLE TO
Stockholders of the parent	$	9,670			18	$	8,627			17
Noncontrolling interests		251			—		316			—
	$	9,921			18	$	8,943			17
EARNINGS PER SHARE
Basic	$	1.18				$	1.11
Diluted	$	1.18				$	1.10

(Concluded)

- 3 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Millions of New Taiwan Dollars)

(Unaudited)

	Equity Attributable to Stockholders of the Parent
													Others
													Exchange
													Differences
													Arising			Unrealized
													from the			Gain or Loss									Total Equity
					Retained Earnings								Translation of			on Financial			Gain or Loss						Attributable to
			Additional				Special		Unappropriated		Total Retained		the Foreign			Assets at			on Hedging						Stockholders		Noncontrolling
	Common Stocks		Paid-in Capital		Legal Reserve		Reserve		Earnings		Earnings		Operations			FVOCI			Instruments			Total Others			of the Parent		Interests			Total Equity
BALANCE, JANUARY 1, 2022	$	77,574	$	149,810	$	77,574	$	2,676	$	70,157	$	150,407	$	(392	)	$	(8	)	$	(8	)	$	(408	)	$	377,383	$	11,747		$	389,130
Cash dividends by subsidiaries		—		—		—		—		—		—		—			—			—			—			—		(371	)		(371	)
Change in additional paid-in capital from investments in associates and joint ventures accounted for using equity method		—		—		—		—		—		—		—			—			—			—			—		—			—
Net income for the three months ended March 31, 2022		—		—		—		—		8,580		8,580		—			—			—			—			8,580		313			8,893
Other comprehensive income (loss) for the three months ended March 31, 2022		—		—		—		—		2		2		66			(37	)		16			45			47		3			50
Total comprehensive income (loss) for the three months ended March 31, 2022		—		—		—		—		8,582		8,582		66			(37	)		16			45			8,627		316			8,943
Share-based payment transactions of subsidiaries		—		13		—		—		—		—		—			—			—			—			13		39			52
BALANCE, MARCH 31, 2022	$	77,574	$	149,823	$	77,574	$	2,676	$	78,739	$	158,989	$	(326	)	$	(45	)	$	8		$	(363	)	$	386,023	$	11,731		$	397,754
BALANCE, JANUARY 1, 2023	$	77,574	$	149,844	$	77,574	$	3,084	$	71,268	$	151,926	$	(111	)	$	(125	)	$	13		$	(223	)	$	379,121	$	12,408		$	391,529
Cash dividends by subsidiaries		—		—		—		—		—		—		—			—			—			—			—		(676	)		(676	)
Net income for the three months ended March 31, 2023		—		—		—		—		9,170		9,170		—			—			—			—			9,170		252			9,422
Other comprehensive income (loss) for the three months ended March 31, 2023		—		—		—		—		10		10		(45	)		547			(12	)		490			500		(1	)		499
Total comprehensive income (loss) for the three months ended March 31, 2023		—		—		—		—		9,180		9,180		(45	)		547			(12	)		490			9,670		251			9,921
Share-based payment transactions of subsidiaries		—		9		—		—		—		—		—			—			—			—			9		(6	)		3
Net increase in noncontrolling interests		—		—		—		—		—		—		—			—			—			—			—		15			15
BALANCE, MARCH 31, 2023	$	77,574	$	149,853	$	77,574	$	3,084	$	80,448	$	161,106	$	(156	)	$	422		$	1		$	267		$	388,800	$	11,992		$	400,792

- 4 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Millions of New Taiwan Dollars)

(Unaudited)

	Three Months Ended March 31
	2023			2022
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$	12,254		$	11,668
Adjustments to reconcile income before income tax to net cash provided by operating activities:
Depreciation		8,204			8,051
Amortization		1,678			1,635
Amortization of incremental costs of obtaining contracts		214			211
Expected credit loss		100			101
Interest expense		76			56
Interest income		(118	)		(24	)
Compensation cost of share-based payment transactions		3			4
Share of profits of associates and joint ventures accounted for using equity method		(97	)		(105	)
Loss on disposal of property, plant and equipment		—			1
Gain on disposal of financial instruments		—			(1	)
Loss on disposal of investments accounted for using equity method		—			1
Provision for impairment loss and obsolescence of inventory		5			40
Valuation loss on financial assets and liabilities at fair value through profit or loss, net		46			94
Others		9			89
Changes in operating assets and liabilities:
Decrease (increase) in:
Contract assets		(277	)		(134	)
Trade notes and accounts receivable		3,586			2,795
Receivables from related parties		27			2
Inventories		(713	)		(1,226	)
Prepayments		(3,053	)		(2,973	)
Other current monetary assets		(503	)		93
Other current assets		(287	)		(373	)
Incremental cost of obtaining contracts		(189	)		(191	)
Increase (decrease) in:
Contract liabilities		(501	)		528
Trade notes and accounts payable		(6,456	)		(6,236	)
Payables to related parties		(261	)		(177	)
Other payables		(2,537	)		(1,891	)
Provisions		289			(34	)
Other current liabilities		(33	)		36
Net defined benefit plans		(182	)		(188	)
Cash generated from operations		11,284			11,852
Interests paid		(58	)		(20	)
Income taxes paid		(20	)		(15	)
Net cash provided by operating activities		11,206			11,817

(Continued)

- 5 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Millions of New Taiwan Dollars)

(Unaudited)

	Three Months Ended March 31
	2023			2022
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through other comprehensive income	$	—		$	(3	)
Acquisition of financial assets at fair value through profit or loss		(100	)		(6	)
Proceeds from disposal of financial assets at fair value through profit or loss		—			9
Proceeds from capital reduction of financial assets at fair value through profit or loss		—			44
Acquisition of time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months		(16,106	)		(2,708	)
Proceeds from disposal of time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months		261			879
Acquisition of investments accounted for using equity method		—			(20	)
Acquisition of property, plant and equipment		(5,418	)		(5,228	)
Proceeds from disposal of property, plant and equipment		3			2
Acquisition of intangible assets		(46	)		(17	)
Decrease (increase) in other noncurrent assets		212			(59	)
Interests received		99			23
Net cash used in investing activities		(21,095	)		(7,084	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term loans		856			13
Repayments of short-term loans		(1,236	)		(13	)
Proceeds from issuance of bonds		—			3,500
Payments for transaction costs attributable to the issuance of bonds		—			(4	)
Decrease in customers’ deposits		(153	)		(428	)
Payments for the principal of lease liabilities		(1,091	)		(1,058	)
Increase (decrease) in other noncurrent liabilities		33			(90	)
Cash dividends distributed to noncontrolling interests		(6	)		—
Change in other noncontrolling interests		15			47
Net cash provided by (used in) financing activities		(1,582	)		1,967
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		(6	)		21

(Continued)

- 6 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Millions of New Taiwan Dollars)

(Unaudited)

	Three Months Ended March 31
	2023			2022
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	$	(11,477	)	$	6,721
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		50,193			39,779
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	38,716		$	46,500

(Concluded)

- 7 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

NOTE TO CONSOLIDATED FINANCIAL STATEMENTS

Three Months Ended March 31, 2023 and 2022

(Unaudited)

STATEMENT OF COMPLIANCE

The Company has prepared its consolidated balance sheets as of March 31, 2023 and 2022, the related consolidated statements of comprehensive income, changes in equity and cash flows for the three months ended March 31, 2023 and 2022 in accordance with IAS 34 “Interim Financial Reporting” as issued by the International Accounting Standards Board (IASB). The consolidated financial statements are incomplete as they omit the related footnote disclosures as required under International Financial Reporting Standards as issued by IASB.

- 8 -