Chunghwa Telecom : Q1 2026 Consolidated Financial Statements (Fully-IFRSs) (full 115q1 final)

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Chunghwa Telecom Co., Ltd. and Subsidiaries Consolidated Financial Statements for the Three Months Ended March 31, 2026 and 2025 CONSOLIDATED BALANCE SHEETS (In Millions of New Taiwan Dollars) March 31, 2026 (Unaudited) December 31, 2025 (Audited) March 31, 2025 (Unaudited) March 31, 2026 (Unaudited) December 31, 2025 (Audited) March 31, 2025 (Unaudited) ASSETS Amount % Amount % Amount % LIABILITIES AND EQUITY Amount % Amount % Amount % CURRENT ASSETS CURRENT LIABILITIES Cash and cash equivalents $ 35,231 6 $ 36,944 7 $ 29,048 5 Short-term loans $ 540 - $ 340 - $ 530 - Financial assets at fair value through profit or loss - - 3 - 5 - Financial liabilities at fair value through profit or loss 2 - - - - - Financial assets at fair value through other Hedging financial liabilities 2 - - - - - comprehensive income - - 19 - - - Contract liabilities 22,647 4 21,296 4 16,582 3 Hedging financial assets - - 3 - - - Trade notes and accounts payable 13,846 3 15,923 3 10,693 2 Contract assets 8,809 2 8,576 2 8,487 2 Payables to related parties 144 - 177 - 120 - Trade notes and accounts receivable, net 29,146 6 27,396 5 22,497 4 Current tax liabilities 10,340 2 7,346 2 9,706 2 Receivables from related parties 178 - 213 - 155 - Lease liabilities 3,951 1 3,890 1 3,739 1 Inventories 14,904 3 13,179 2 11,916 2 Other payables 26,053 5 28,716 5 23,586 4 Prepayments 8,198 1 3,790 1 6,409 1 Provisions 541 - 525 - 669 - Other current monetary assets 33,626 6 23,468 4 36,773 7 Current portion of long-term loans 5,399 1 1,900 - 8,805 2 Incremental costs of obtaining contracts 339 - 339 - 339 - Other current liabilities 948 - 957 - 1,017 - Other current assets 4,033 1 3,441 1 2,994 1 Total current liabilities 84,413 16 81,070 15 75,447 14 Total current assets 134,464 25 117,371 22 118,623 22 NONCURRENT LIABILITIES NONCURRENT ASSETS Long-term loans 1,600 - 1,600 - 1,629 - Financial assets at fair value through profit or loss 1,239 - 1,211 - 1,083 - Bonds payable 21,688 4 23,288 4 21,690 4 Financial assets at fair value through other Contract liabilities 6,647 1 6,567 1 7,407 1 comprehensive income 6,707 1 6,787 1 5,300 1 Deferred income tax liabilities 2,888 1 2,829 1 2,714 2 Financial assets at amortized cost 2,020 - 2,020 - 2,000 - Provisions 563 - 560 - 308 - Investments accounted for using equity method 8,490 2 8,264 2 8,926 2 Lease liabilities 6,574 1 7,001 1 7,462 1 Contract assets 4,834 1 4,733 1 4,354 1 Customers' deposits 5,223 1 5,262 1 5,161 1 Property, plant and equipment 282,833 51 288,165 55 286,590 53 Net defined benefit liabilities 2,363 - 2,329 1 2,120 - Right-of-use assets 10,476 2 10,764 2 11,321 2 Other noncurrent liabilities 7,032 1 6,703 1 7,581 1 Investment properties 14,103 3 12,420 2 12,293 2 Intangible assets 58,261 11 59,762 11 64,647 12 Total noncurrent liabilities 54,578 9 56,139 10 56,072 10 Deferred income tax assets 1,796 - 1,782 - 1,749 - Incremental costs of obtaining contracts 1,052 - 1,109 - 1,209 - Total liabilities 138,991 25 137,209 25 131,519 24 Net defined benefit assets 10,022 2 9,866 2 9,072 3 Prepayments 6,174 1 5,931 1 4,790 1 EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF Other noncurrent assets 5,147 1 5,495 1 5,075 1 THE PARENT Common stocks 77,574 14 77,574 14 77,574 14 Total noncurrent assets 413,154 75 418,309 78 418,409 78 Additional paid-in capital 150,946 28 150,923 29 150,063 28 Retained earnings Legal reserve 77,574 14 77,574 14 77,574 14 Special reserve 2,676 1 2,676 1 2,676 - Unappropriated earnings 83,975 15 74,364 14 83,681 17 Total retained earnings 164,225 30 154,614 29 163,931 31 Others 941 - 1,020 - 1,231 - Total equity attributable to stockholders of the parent 393,686 72 384,131 72 392,799 73 NONCONTROLLING INTERESTS 14,941 3 14,340 3 12,714 3 Total equity 408,627 75 398,471 75 405,513 76 TOTAL $ 547,618 100 $ 535,680 100 $ 537,032 100 TOTAL $ 547,618 100 $ 535,680 100 $ 537,032 100 - 1 - Three Months Ended March 31 2026 2025 Amount % Amount % REVENUES $ 59,988 100 $ 55,808 100 OPERATING COSTS 37,238 62 34,203 61 GROSS PROFIT 22,750 38 21,605 39 OPERATING EXPENSES Marketing 6,428 11 6,140 11 General and administrative 1,972 3 1,793 3 Research and development 1,115 2 1,030 2 Expected credit loss 132 - 120 - Total operating expenses 9,647 16 9,083 16 OTHER INCOME AND EXPENSES 2 - 1 - INCOME FROM OPERATIONS 13,105 22 12,523 23 NON-OPERATING INCOME AND EXPENSES Interest income 198 - 212 - Other income 41 - 37 - Other gains and losses (45) - (25) - Interest expense (103) - (89) - Share of profit or loss of associates and joint ventures accounted for using equity method (18) - 38 - Total non-operating income and expenses 73 - 173 - INCOME BEFORE INCOME TAX 13,178 22 12,696 23 INCOME TAX EXPENSE 3,056 5 2,964 5 NET INCOME 10,122 17 9,732 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 (117) - 568 1 Gain or loss on hedging instruments subject to basis adjustment (5) - 1 - (Continued) - 2 - CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Millions of New Taiwan Dollars, Except Earnings Per Share) (Unaudited) Three Months Ended March 31 2026 Amount % 2025 Amount % Share of other comprehensive income of associates and joint ventures $ (5 ) - $ 1 - (127 ) - 570 1 Items that may be reclassified subsequently to profit or loss: Exchange differences arising from the translation of the foreign operations 72 - 74 - Share of other comprehensive income of associates and joint ventures (7 ) - 7 - 65 - 81 - Total other comprehensive income, net of income tax (62 ) - 651 1 TOTAL COMPREHENSIVE INCOME $ 10,060 17 $ 10,383 19 NET INCOME ATTRIBUTABLE TO Stockholders of the parent $ 9,611 16 $ 9,319 17 Noncontrolling interests 511 1 413 1 $ 10,122 17 $ 9,732 18 COMPREHENSIVE INCOME ATTRIBUTABLE TO Stockholders of the parent $ 9,532 16 $ 9,964 18 Noncontrolling interests 528 1 419 1 $ 10,060 17 $ 10,383 19 EARNINGS PER SHARE Basic $1.24 $1.20 Diluted $1.24 $1.20 (Concluded) 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, 2025 $ 77,574 $ 150,054 $ 77,574 $ 2,676 $ 74,362 $ 154,612 $ 23 $ 564 $ (1) $ 586 $ 382,826 $ 12,980 $ 395,806 Cash dividends by subsidiaries - - - - - - - - - - - (710) (710) Net income for the three months ended March 31, 2025 - - - - 9,319 9,319 - - - - 9,319 413 9,732 Other comprehensive income for the three months ended March 31, 2025 - - - - - - 70 574 1 645 645 6 651 Total comprehensive income for the three months ended March 31, 2025 - - - - 9,319 9,319 70 574 1 645 9,964 419 10,383 Changes in equities of subsidiaries - 9 - - - - - - - - 9 (7) 2 Net increase in noncontrolling interests - - - - - - - - - - - 32 32 BALANCE, MARCH 31, 2025 $ 77,574 $ 150,063 $ 77,574 $ 2,676 $ 83,681 $ 163,931 $ 93 $ 1,138 $ - $ 1,231 $ 392,799 $ 12,714 $ 405,513 BALANCE, JANUARY 1, 2026 $ 77,574 $ 150,923 $ 77,574 $ 2,676 $ 74,364 $ 154,614 $ (192) $ 1,209 $ 3 $ 1,020 $ 384,131 $ 14,340 $ 398,471 Cash dividends by subsidiaries - - - - - - - - - - - (610) (610) Change in additional paid-in capital for not participating in the capital increase of subsidiaries - - - - - - - - - - - 30 30 Net income for the three months ended March 31, 2026 - - - - 9,611 9,611 - - - - 9,611 511 10,122 Other comprehensive income for the three months ended March 31, 2026 - - - - - - 67 (141 ) (5 ) (79 ) (79 ) 17 (62 ) Total comprehensive income for the three months ended March 31, 2026 - - - - 9,611 9,611 67 (141 ) (5 ) (79 ) 9,532 528 10,060 Changes in equities of subsidiaries - 23 - - - - - - - - 23 303 326 Net increase in noncontrolling interests - - - - - - - - - - - 350 350 BALANCE, MARCH 31, 2026 $ 77,574 $ 150,946 $ 77,574 $ 2,676 $ 83,975 $ 164,225 $ (125 ) $ 1,068 $ (2 ) $ 941 $ 393,686 $ 14,941 $ 408,627 CONSOLIDATED STATEMENTS OF CASH FLOWS (In Millions of New Taiwan Dollars) (Unaudited) Three Months Ended March 31 2026 2025 CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax $ 13,178 $ 12,696 Adjustments to reconcile income before income tax to net cash provided by operating activities: Depreciation 8,537 8,340 Amortization 1,664 1,669 Amortization of incremental costs of obtaining contracts 233 238 Expected credit loss 132 120 Valuation loss (gain) on financial assets and liabilities at fair value through profit or loss, net 32 - Interest expense 103 89 Interest income (198) (212) Dividend income (1) - Compensation cost of share-based payment transactions - 1 Share of loss (gain) of associates and joint ventures accounted for using equity method 18 (38) Gain on disposal of property, plant and equipment (2) (1) Provision for impairment loss and obsolescence of inventory 19 38 Gain on disposal of subsidiaries - (15) Others (50) 50 Changes in operating assets and liabilities: Decrease (increase) in: Contract assets (335) (121) Trade notes and accounts receivable (1,865) 3,407 Receivables from related parties 35 38 Inventories (1,744) 127 Prepayments (4,415) (3,258) Other current assets (592) 118 Other current monetary assets (216) (119) Incremental cost of obtaining contracts (176) (225) Increase (decrease) in: Contract liabilities 1,431 155 Trade notes and accounts payable (2,077) (7,041) Payables to related parties (33) (360) Other payables (2,372) (2,349) Provisions 19 - Net defined benefit plans (122) (177) Other current liabilities (11 ) (35 ) Cash generated from operations 11,192 13,135 Interests paid (72) (71) Income taxes paid (16 ) (113 ) Net cash provided by operating activities 11,104 12,951 (Continued) CONSOLIDATED STATEMENTS OF CASH FLOWS (In Millions of New Taiwan Dollars) (Unaudited) Three Months Ended March 31 2026 2025 CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of financial assets at fair value through other comprehensive income $ (37) $ (65) Proceeds from disposal of financial assets at fair value through other comprehensive income 18 - Acquisition of financial assets at fair value through profit or loss (60) (82) Acquisition of investments accounted for using equity method (240) - Net cash outflow from loss of control of subsidiaries - (9) Acquisition of property, plant and equipment (4,550) (5,407) Proceeds from disposal of property, plant and equipment 6 2 Acquisition of intangible assets (79) (33) Acquisition of investment properties - (2) Acquisition of time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months (21,530) (23,031) Proceeds from disposal of time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months 11,658 9,705 Decrease (increase) in other noncurrent assets 347 (204) Increase in prepayments for leases (236) (342) Interests received 167 169 Dividends received 1 156 Proceeds from profit distribution of financial assets at fair value through profit or loss 5 - Net cash used in investing activities (14,530 ) (19,143 ) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term loans 675 530 Repayments of short-term loans (475) (150) Proceeds from issuance of bonds 2,569 - Payments for transaction costs attributable to the issuance of bonds (5) - Decrease in customers' deposits (38) (141) Payments for the principal of lease liabilities (1,163) (1,203) Increase (decrease) in other noncurrent liabilities 296 (107) Cash dividends distributed to noncontrolling interests (216) (1) Change in other noncontrolling interests 32 13 Net cash provided by (used in) financing activities 1,675 (1,059 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 38 39 (Continued) CONSOLIDATED STATEMENTS OF CASH FLOWS (In Millions of New Taiwan Dollars) (Unaudited) Three Months Ended March 31 2026 2025 NET DECREASE IN CASH AND CASH EQUIVALENTS $ (1,713) $ (7,212) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 36,944 36,260 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 35,231 $ 29,048 (Concluded) NOTE TO CONSOLIDATED FINANCIAL STATEMENTS Three Months Ended March 31, 2026 and 2025 (Unaudited) STATEMENT OF COMPLIANCE The Company has prepared its consolidated balance sheets as of March 31, 2026 and 2025, the related consolidated statements of comprehensive income, changes in equity and cash flows for the three months ended March 31, 2026 and 2025 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.

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