Chunghwa Telecom Co., LtdTWSE: 2412

Q1 2026 Consolidated Financial Statements (T-IFRSs) (3115q1entifrs)

· Issued by Chunghwa Telecom Co., Ltd
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Chunghwa Telecom Co., Ltd. and Subsidiaries

Consolidated Financial Statements for the

Three Months Ended March 31, 2026 and 2025 and Independent Auditors' Review Report

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pwc 資試

INDEPENDENT AUDITORS'REVIEW REPORT

TPWo tCheR2B6o0a0rd00o5fIDirectors and Stockholders ofChunghwa Telecom Co., Ltd. Introduction

Scope of Review

We conducted our reviews in accordance with the Standards on Review Engagements 24l O, ｀＇Review of Interim Financial Information Performed by the Independent Auditor ofthe Enfity" ofthe Republic ofChina. A review ofconsolidated financial statements consists ofmaking inquiries, primarily ofpersons responsible

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express an audit opinion.

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Conclusion

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Based on our ṯeviews, nothing has come to our attention that caused us to believe that the accom anyin consolidated financial statements do not present fairly, in all material respects, the consolidated fnancia{ position ofthe Com as ofMarch 3 l, 2O26 and 2O25, and ofits consohdated financial performance and GItsovceomnsionlgidtahteedPrceapsarationwsoffoFirnathneoathl rReee-pmorotnsthbyp· SeericoudrsititehseInsseunedrsedanidn Ianctecronradtainonceal wAicthcotuhnetmRge磨utaIantdioanrds

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34, "Interim Financial Reporting", that came into effiect as endorsed by the Financial Supervisory

Comm1ss1on.

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For and on behalfofPricewaterhouseCoopers. Taiwan May 8, 2026

Notice to Readers

www.pwc.œm

資誠聯合會計師事務所PricewaterhouseCoopers, Taiwan 110208蔓北市信義區基隆路一段333號27樓

27F, No. 333, Sec. 1, Keelung Rd., Xinyi Dist., Taipei 110208, Taiwan T: +886 (2) 2729 6666, F:+ 886 (2) 2729 6686

- I -



CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands of New Taiwan Dollars)

March 31, 2026 December 31, 2025 March 31, 2025

ASSETS

Amount

%

Amount

%

Amount

%

CURRENT ASSETS

Cash and cash equivalents (Notes 6, 14 and 38)

$ 35,230,791

6

$ 36,944,206

7

$ 29,047,839

5

Financial assets at fair value through profit or loss (Note 7)

250

-

3,372

-

5,048

-

Financial assets at fair value through other comprehensive income (Note 8)

-

-

18,555

-

-

-

Hedging financial assets (Note 21)

-

-

3,204

-

30

-

Contract assets (Note 30)

8,809,445

2

8,576,194

2

8,486,649

2

Trade notes and accounts receivable, net (Notes 10 and 30)

29,146,345

5

27,396,423

5

22,496,724

4

Receivables from related parties (Note 38)

178,084

-

213,480

-

154,602

-

Inventories (Notes 11, 30, 39 and 40)

14,904,433

3

13,178,595

2

11,916,341

2

Prepayments (Note 12)

8,197,935

1

3,789,733

1

6,408,832

1

Other current monetary assets (Notes 13 and 38)

33,625,902

6

23,467,523

4

36,773,359

7

Incremental costs of obtaining contracts (Note 30)

338,581

-

338,581

-

339,172

-

Other current assets (Notes 20 and 39)

4,033,113

1

3,441,219

1

2,994,656

1

Total current assets

134,464,879

24

117,371,085

22

118,623,252

22

NONCURRENT ASSETS

Financial assets at fair value through profit or loss (Note 7)

1,239,325

-

1,211,352

-

1,082,818

-

Financial assets at fair value through other comprehensive income (Note 8)

6,707,025

1

6,786,803

1

5,300,400

1

Financial assets at amortized cost (Note 9)

2,020,294

-

2,020,300

-

2,000,000

-

Investments accounted for using equity method (Note 15)

8,684,889

2

8,456,132

2

9,124,013

2

Contract assets (Note 30)

4,834,207

1

4,733,374

1

4,353,711

1

Property, plant and equipment (Notes 14, 16, 35, 39 and 40)

282,832,850

52

288,164,825

55

286,589,967

54

Right-of-use assets (Notes 17 and 38)

10,475,736

2

10,763,909

2

11,320,565

2

Investment properties (Note 18)

14,102,858

3

12,420,318

2

12,292,561

2

Intangible assets (Notes 19 and 35)

58,260,806

11

59,762,175

11

64,647,191

12

Deferred income tax assets (Note 3)

1,795,783

-

1,781,649

-

1,748,558

-

Incremental costs of obtaining contracts (Note 30)

1,051,918

-

1,109,029

-

1,209,212

-

Net defined benefit assets (Note 3)

10,021,823

2

9,865,533

2

9,072,610

2

Prepayments (Notes 12 and 40)

6,173,824

1

5,931,213

1

4,789,717

1

Other noncurrent assets (Notes 20, 39 and 40)

5,147,417

1

5,494,254

1

5,075,506

1

Total noncurrent assets

413,348,755

76

418,500,866

78

418,606,829

78

TOTAL

$ 547,813,634

100

$ 535,871,951

100

$ 537,230,081

100

LIABILITIES AND EQUITY

CURRENT LIABILITIES

Short-term loans (Notes 14 and 22)

$ 540,000

-

$ 340,000

-

$ 530,000

-

Financial liabilities at fair value through profit or loss (Note 7)

1,681

-

3

-

-

-

Hedging financial liabilities (Note 21)

1,619

-

56

-

-

-

Contract liabilities (Notes 30 and 40)

22,646,787

4

21,296,124

4

16,582,177

3

Trade notes and accounts payable (Note 25)

13,845,531

3

15,922,842

3

10,692,983

2

Payables to related parties (Note 38)

143,987

-

176,746

-

120,174

-

Current tax liabilities (Note 3)

7,730,733

1

5,218,971

1

7,141,579

1

Lease liabilities (Notes 17, 35 and 38)

3,950,500

1

3,889,510

1

3,738,416

1

Other payables (Notes 26 and 35)

26,053,359

5

28,716,142

5

23,586,489

5

Provisions (Note 27)

541,388

-

524,743

-

668,780

-

Current portion of long-term liabilities (Notes 23, 24 and 39)

5,399,058

1

1,899,856

-

8,805,183

2

Other current liabilities

947,986

-

957,029

-

1,016,527

-

Total current liabilities

81,802,629

15

78,942,022

14

72,882,308

14

NONCURRENT LIABILITIES

Long-term loans (Notes 23 and 39)

1,600,000

-

1,600,000

-

1,629,167

-

Bonds payable (Notes 3 and 24)

21,687,792

4

23,288,282

4

21,690,253

4

Contract liabilities (Notes 30 and 40)

6,646,928

1

6,567,398

1

7,407,333

1

Deferred income tax liabilities (Note 3)

2,888,283

1

2,828,682

1

2,713,617

1

Provisions (Note 27)

563,060

-

560,273

-

307,725

-

Lease liabilities (Notes 17, 35 and 38)

6,574,169

1

7,000,631

2

7,462,150

2

Customers' deposits (Note 38)

5,222,660

1

5,261,997

1

5,160,925

1

Net defined benefit liabilities (Note 3)

2,362,916

-

2,329,312

-

2,119,689

-

Other noncurrent liabilities

7,032,517

1

6,703,278

2

7,581,570

1

Total noncurrent liabilities

54,578,325

9

56,139,853

11

56,072,429

10

Total liabilities

136,380,954

24

135,081,875

25

128,954,737

24

EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE PARENT (Notes 14 and 29)

Common stocks

77,574,465

15

77,574,465

15

77,574,465

15

Additional paid-in capital

172,473,842

31

172,450,886

32

171,596,531

32

Retained earnings

Legal reserve

77,574,465

15

77,574,465

15

77,574,465

15

Special reserve

2,675,419

-

2,675,419

-

2,675,419

-

Unappropriated earnings

65,072,551

12

54,962,307

10

64,752,573

12

Total retained earnings

145,322,435

27

135,212,191

25

145,002,457

27

Others

941,514

-

1,020,169

-

1,230,537

-

Total equity attributable to stockholders of the parent

396,312,256

73

386,257,711

72

395,403,990

74

NONCONTROLLING INTERESTS (Note 14)

15,120,424

3

14,532,365

3

12,871,354

2

Total equity

411,432,680

76

400,790,076

75

408,275,344

76

TOTAL

$ 547,813,634

100

$ 535,871,951

100

$ 537,230,081

100

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

- 2 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) Three Months Ended March 31 2026 2025

Amount

%

Amount

%

REVENUES (Notes 30, 38 and 45)

$ 59,988,435

100

$ 55,808,409

100

OPERATING COSTS (Notes 11, 28, 30, 31 and 38)

37,238,688

62

34,203,238

61

GROSS PROFIT

22,749,747

38

21,605,171

39

OPERATING EXPENSES (Notes 10, 28, 31 and

38)

Marketing

6,428,072

11

6,140,628

11

General and administrative

1,972,202

3

1,793,499

3

Research and development

1,114,800

2

1,029,841

2

Expected credit loss

132,074

-

119,535

-

Total operating expenses

9,647,148

16

9,083,503

16

OTHER INCOME AND EXPENSES (Note 31)

1,927

-

1,018

-

INCOME FROM OPERATIONS

13,104,526

22

12,522,686

23

NON-OPERATING INCOME AND EXPENSES

Interest income (Note 38)

197,862

-

211,517

-

Other income (Notes 31 and 38)

41,110

-

38,448

-

Other gains and losses (Notes 14, 31, 37 and 38)

(45,282)

-

(25,118)

-

Interest expense (Notes 17, 31 and 38)

Share of profit or loss of associates and joint ventures accounted for using equity method (Note 15)

(102,516)

(14,975)

-

-

(89,357)

40,835

-

-

Total non-operating income and expenses

76,199

-

176,325

-

INCOME BEFORE INCOME TAX

13,180,725

22

12,699,011

23

INCOME TAX EXPENSE (Notes 3 and 32)

2,573,003

4

2,503,200

5

NET INCOME

10,607,722

18

10,195,811

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 29 and 37)

(117,386)

-

568,424

1

(Continued)

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) Three Months Ended March 31 2026 2025 Amount % Amount %

Gain or loss on hedging instruments subject to

basis adjustment (Note 21)

$ (4,767)

-

$ 804

-

Share of other comprehensive income of associates and joint ventures (Notes 15 and

29)

(5,277)

-

669

-

(127,430)

-

569,897

1

Items that may be reclassified subsequently to profit or loss:

Exchange differences arising from the

translation of the foreign operations

72,442

-

73,809

-

Share of other comprehensive income of

associates and joint ventures (Notes 15 and 29)

(7,247)

-

7,268

-

65,195

-

81,077

-

Total other comprehensive income, net of income tax

(62,235)

-

650,974

1

TOTAL COMPREHENSIVE INCOME

$ 10,545,487

18

$ 10,846,785

19

NET INCOME ATTRIBUTABLE TO

Stockholders of the parent

$ 10,109,931

17

$ 9,799,194

17

Noncontrolling interests

497,791

1

396,617

1

$ 10,607,722

18

$ 10,195,811

18

COMPREHENSIVE INCOME ATTRIBUTABLE TO

Stockholders of the parent

$ 10,031,589

17

$ 10,444,048

18

Noncontrolling interests

513,898

1

402,737

1

$ 10,545,487

18

$ 10,846,785

19

EARNINGS PER SHARE (Note 33)

Basic

$ 1.30

$ 1.26

Diluted

$ 1.30

$ 1.26

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

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Thousands of New Taiwan Dollars)

Equity Attributable to Stockholders of the Parent (Notes 14, 21 and 29)

Others Unrealized Gain

Exchange or Loss on Differences Financial Assets

Arising from the at Fair Value

Retained Earnings Translation of Through Other Gain or Loss Noncontrolling Additional Unappropriated the Foreign Comprehensive on Hedging Interests

Common Stocks

Paid-in Capital

Legal Reserve

Special Reserve

Earnings

Operations

Income

Instruments

Total

(Note 14)

Total Equity

BALANCE, JANUARY 1, 2025

$ 77,574,465

$ 171,587,279

$ 77,574,465

$ 2,675,419

$ 54,953,379

$ 22,852

$ 563,605

$ (774)

$ 384,950,690

$ 13,154,166

$ 398,104,856

Cash dividends distributed by subsidiaries

-

-

-

-

-

-

-

-

-

(710,530)

(710,530)

Net income for the three months ended March 31, 2025

-

-

-

-

9,799,194

-

-

-

9,799,194

396,617

10,195,811

Other comprehensive income for the three months ended March 31, 2025

-

-

-

-

-

69,868

574,182

804

644,854

6,120

650,974

Total comprehensive income for the three months ended March 31, 2025

-

-

-

-

9,799,194

69,868

574,182

804

10,444,048

402,737

10,846,785

Changes in equities of subsidiaries

-

9,252

-

-

-

-

-

-

9,252

(6,767)

2,485

Net increase in noncontrolling interests

-

-

-

-

-

-

-

-

-

31,748

31,748

BALANCE, MARCH 31, 2025

$ 77,574,465

$ 171,596,531

$ 77,574,465

$ 2,675,419

$ 64,752,573

$ 92,720

$ 1,137,787

$ 30

$ 395,403,990

$ 12,871,354

$ 408,275,344

BALANCE, JANUARY 1, 2026

$ 77,574,465

$ 172,450,886

$ 77,574,465

$ 2,675,419

$ 54,962,307

$ (191,679)

$ 1,208,700

$ 3,148

$ 386,257,711

$ 14,532,365

$ 400,790,076

Cash dividends distributed by subsidiaries

-

-

-

-

-

-

-

-

-

(609,621)

(609,621)

Change in additional paid-in capital for not participating in the capital increase of a subsidiary

-

266

-

-

-

-

-

-

266

29,734

30,000

Net income for the three months ended March 31, 2026

-

-

-

-

10,109,931

-

-

-

10,109,931

497,791

10,607,722

Other comprehensive income for the three months ended March 31, 2026

-

-

-

-

-

66,988

(140,563)

(4,767)

(78,342)

16,107

(62,235)

Total comprehensive income for the three months ended March 31, 2026

-

-

-

-

10,109,931

66,988

(140,563)

(4,767)

10,031,589

513,898

10,545,487

Disposal of investments in equity instruments at fair value through other comprehensive income

-

-

-

-

313

-

(313)

-

-

-

-

Changes in equities of subsidiaries

-

22,690

-

-

-

-

-

-

22,690

304,048

326,738

Net increase in noncontrolling interests

-

-

-

-

-

-

-

-

-

350,000

350,000

BALANCE, MARCH 31, 2026

$ 77,574,465

$ 172,473,842

$ 77,574,465

$ 2,675,419

$ 65,072,551

$ (124,691)

$ 1,067,824

$ (1,619)

$ 396,312,256

$ 15,120,424

$ 411,432,680

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

- 5 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)

Three Months Ended March 31

2026

2025

CASH FLOWS FROM OPERATING ACTIVITIES

Income before income tax

$ 13,180,725

$ 12,699,011

Adjustments for:

Depreciation

8,536,925

8,340,188

Amortization

1,663,940

1,668,887

Amortization of incremental costs of obtaining contracts

232,964

238,217

Expected credit loss

132,074

119,535

Valuation loss (gain) on financial assets and liabilities at fair

value through profit or loss, net

31,717

(193)

Interest expense

102,516

89,357

Interest income

(197,862)

(211,517)

Dividend income

(669)

-

Compensation cost of share-based payment transactions

-

1,225

Share of loss (gain) of associates and joint ventures accounted for

using equity method

14,975

(40,835)

Gain on disposal of property, plant and equipment

(1,927)

(1,018)

Provision for impairment loss and obsolescence of inventory

19,063

38,153

Gain on disposal of subsidiaries

-

(15,290)

Others

(49,904)

50,931

Changes in operating assets and liabilities:

Decrease (increase) in:

Contract assets

(334,934)

(120,849)

Trade notes and accounts receivable

(1,865,596)

3,407,094

Receivables from related parties

35,396

38,402

Inventories

(1,744,901)

126,103

Prepayments

(4,415,147)

(3,258,324)

Other current assets

(591,894)

117,602

Other current monetary assets

(215,144)

(119,227)

Incremental costs of obtaining contracts

(175,853)

(225,777)

Increase (decrease) in:

Contract liabilities

1,430,193

155,170

Trade notes and accounts payable

(2,077,311)

(7,040,550)

Payables to related parties

(32,759)

(360,227)

Other payables

(2,370,891)

(2,348,547)

Provisions

19,432

20

Net defined benefit plans

(122,686)

(176,426)

Other current liabilities

(10,802)

(35,396)

Cash generated from operations

11,191,640

13,135,719

Interests paid

(72,361)

(71,376)

Income taxes paid

(15,774)

(113,327)

Net cash provided by operating activities 11,103,505 12,951,016 (Continued)

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)

Three Months Ended March 31

2026

2025

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of financial assets at fair value through other comprehensive income

$ (37,103)

$ (65,000)

Proceeds from disposal of financial assets at fair value through

other comprehensive income

18,050

-

Acquisition of financial assets at fair value through profit or loss

(60,000)

(82,191)

Acquisition of investments accounted for using equity method

(240,000)

-

Net cash outflow from loss of control of subsidiaries

-

(8,664)

Acquisition of property, plant and equipment

(4,549,627)

(5,407,350)

Proceeds from disposal of property, plant and equipment

5,862

2,168

Acquisition of intangible assets

(79,362)

(32,751)

Acquisition of investment properties

-

(2,067)

Acquisition of time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months

(21,529,777)

(23,031,073)

Proceeds from disposal of time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months

11,657,827

9,704,902

Decrease (increase) in other noncurrent assets

346,615

(204,163)

Increase in prepayments for leases

(235,666)

(342,190)

Interests received

167,296

168,718

Dividends received

1,000

156,220

Proceeds from profit distribution of financial assets at fair value through profit or loss

5,110

44

Net cash used in investing activities

(14,529,775)

(19,143,397)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from short-term loans

675,000

530,000

Repayments of short-term loans

(475,000)

(150,000)

Proceeds from issuance of bonds

2,568,531

-

Payments for transaction costs attributable to the issuance of bonds

(5,195)

-

Decrease in customers' deposits

(37,578)

(141,038)

Payments for the principal of lease liabilities

(1,163,404)

(1,203,598)

Increase (decrease) in other noncurrent liabilities

295,786

(106,666)

Cash dividends distributed to noncontrolling interests

(216,003)

(688)

Change in other noncontrolling interests

32,573

13,474

Net cash provided by (used in) financing activities

1,674,710

(1,058,516)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

38,145

39,047

(Continued)

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars)

Three Months Ended March 31

2026

2025

NET DECREASE IN CASH AND CASH EQUIVALENTS

$ (1,713,415)

$ (7,211,850)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

36,944,206

36,259,689

CASH AND CASH EQUIVALENTS, END OF PERIOD

$ 35,230,791

$ 29,047,839

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

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS THREE MONTHS ENDED MARCH 31, 2026 AND 2025 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)
  1. GENERAL

    Chunghwa Telecom Co., Ltd. ("Chunghwa"; Chunghwa together with its subsidiaries are hereinafter referred to collectively as the "Company".) was incorporated on July 1, 1996 in the Republic of China ("ROC"). Chunghwa is a company limited by shares and, prior to August 2000, was wholly owned by the Ministry of Transportation and Communications ("MOTC"). Prior to July 1, 1996, the current operations of Chunghwa were carried out under the Directorate General of Telecommunications ("DGT"). The DGT was established by the MOTC in June 1943 to take primary responsibility in the development of telecommunications infrastructure and to formulate policies related to telecommunications. On July 1, 1996, the telecom operations of the DGT were spun-off as Chunghwa which continues to carry out the business and the DGT continues to be the industry regulator.

    Effective August 12, 2005, the MOTC completed the process of privatizing Chunghwa by reducing the government ownership to below 50% in various stages. In July 2000, Chunghwa received approval from the Securities and Futures Commission (the "SFC") for a domestic initial public offering and its common stocks were listed and traded on the Taiwan Stock Exchange (the "TWSE") on October 27, 2000. Certain of Chunghwa's common stocks were sold, in connection with the foregoing privatization plan, in domestic public offerings at various dates from August 2000 to July 2003. Certain of Chunghwa's common stocks were also sold in an international offering of securities in the form of American Depository Shares ("ADS") on July 17, 2003 and were listed and traded on the New York Stock Exchange (the "NYSE"). The MOTC sold common stocks of Chunghwa by auction in the ROC on August 9, 2005 and completed the second international offering on August 10, 2005. Upon completion of the share transfers associated with these offerings on August 12, 2005, the MOTC owned less than 50% of the outstanding shares of Chunghwa and completed the privatization plan.

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

  2. APPROVAL OF FINANCIAL STATEMENTS

    The consolidated financial statements were approved by the Board of Directors on May 8, 2026.

  3. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

    Except for the following items, the accounting policies applied in these consolidated financial statements are consistent with those applied in the consolidated financial statements for the year ended December 31, 2025. Please refer to the consolidated financial statements for the year ended December 31, 2025 for the details.

    Statement of Compliance

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

    International Financial Reporting Interpretations Committee (IFRIC) and SIC Interpretations (SIC)

    (collectively, the "IFRSs") endorsed and issued into effect by the FSC.

    Basis of Consolidation

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

    Percentage of Ownership Interests

    Main Businesses and

    March 31,

    December

    March 31,

    Name of Investor

    Name of Investee Products

    2026

    31, 2025

    2025

    Note

    Chunghwa Telecom

    Senao International Co., Ltd. Handset and peripherals

    28

    28

    28

    a.

    Co., Ltd.

    ("SENAO") retailer, sales of CHT mobile phone plans as an agent

    Light Era Development Co., Planning and development of

    100

    100

    100

    Ltd. ("LED") real estate and intelligent buildings, and property

    management

    Donghwa Telecom Co., Ltd. International private leased

    100

    100

    100

    ("DHT") circuit, IP VPN service, and

    IP transit services

    Chunghwa Telecom Singapore International private leased

    100

    100

    100

    Pte., Ltd. ("CHTS") circuit, IP VPN service, and

    IP transit services

    Chunghwa System Integration Providing system integration

    100

    100

    100

    Co., Ltd. ("CHSI") services and

    telecommunications

    equipment Chunghwa Investment Co., Investment

    89

    89

    89

    Ltd. ("CHI")

    CHIEF Telecom Inc. Network integration, internet

    ("CHIEF") data center ("IDC"),

    56

    56

    56

    b.

    communications integration

    and cloud application services

    CHYP Multimedia Marketing Digital information supply

    100

    100

    100

    & Communications Co., Ltd. services and advertisement

    ("CHYP") services

    Prime Asia Investments Group Investment

    100

    100

    100

    Ltd. ("Prime Asia")

    Spring House Entertainment Software design services,

    56

    56

    56

    Tech. Inc. ("SHE") internet contents production

    and play, and motion picture production and distribution

    Chunghwa Telecom Global, International private leased

    100

    100

    100

    Inc. ("CHTG") circuit, internet services, and transit services

    Chunghwa Telecom Vietnam Intelligent energy saving

    100

    100

    100

    Co., Ltd. ("CHTV") solutions, international circuit, and information and

    communication technology

    ("ICT") services.

    Smartfun Digital Co., Ltd. Providing diversified family

    65

    65

    65

    ("SFD") education digital services

    Chunghwa Telecom Japan Co., International private leased

    100

    100

    100

    Ltd. ("CHTJ")

    Chunghwa Sochamp

    Technology Inc. ("CHST")

    circuit, IP VPN service, and IP transit services

    Design, development and production of Automatic License Plate Recognition software and hardware

    - - - c.

    Honghwa International Co.,

    Telecommunications

    100

    100

    100

    Ltd. ("HHI")

    engineering, sales agent of mobile phone plan

    application and other

    Chunghwa Leading Photonics

    business services, etc. Production and sale of

    62

    62

    70

    d.

    Tech Co., Ltd. ("CLPT")

    electronic components and

    Chunghwa Telecom (Thailand)

    finished products International private leased

    100

    100

    100

    Co., Ltd. ("CHTT")

    circuit, IP VPN service, ICT and cloud VAS services

    (Continued)

    Percentage of Ownership Interests

    Name of Investor Name of Investee Main Businesses and Products March 31, 2026 December 31, 2025 March 31, 2025 Note

    CHT Security Co., Ltd.

    ("CHTSC")

    International Integrated

    Systems, Inc. ("IISI")

    Chunghwa Digital Cultural and Creative Capital Co., Ltd ("CDCC Capital")

    Chunghwa Telecom Europe

    GmbH ("CHTEU")

    CHT InventAI Co., Ltd.

    ("CHAI")

    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

    IT solution provider, IT application consultation, system integration and package solution

    Investment and management consulting

    International private leased circuit, internet services, transit services and ICT services

    AI software, system development, application services, and enterprise consulting

    57 57 63 e.

    45 45 50 f.

    100 100 100

    100 100 100

    80 100 - g.

    Senao International Co., Ltd.

    Youth Co., Ltd. ("Youth") Sale of information and

    communication technologies products

    96 96 96

    Aval Technologies Co., Ltd.

    ("Aval")

    Senyoung Insurance Agent Co., Ltd. ("SENYOUNG")

    Sakuyo Health Science Co., Ltd. ("SAKUYO")

    Sale of information and communication technologies products

    Property and liability insurance agency

    Health product development and supply chain management

    100 100 100

    100 100 100

    100 - - h.

    Youth Co., Ltd. ISPOT Co., Ltd. ("ISPOT") Sale 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

    CHIEF Telecom Inc. Unigate Telecom Inc.

    ("Unigate")

    Chief International Corp.

    ("CIC")

    Shanghai Chief Telecom Co., Ltd. ("SCT")

    Telecommunications and internet service

    Telecommunications and internet service

    Telecommunications and internet service

    100 100 100

    100 100 100

    49 49 49 i.

    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 j.

    Chunghwa Precision Test Tech. Co., Ltd.

    Chunghwa Precision Test Tech USA Corporation ("CHPT (US)")

    CHPT Japan Co., Ltd. ("CHPT (JP)")

    Chunghwa Precision Test Tech. International, Ltd. ("CHPT (International)")

    Design and after-sale services of semiconductor testing components and printed circuit board

    Related services of electronic parts, machinery processed products and printed circuit board

    Wholesale and retail of electronic materials, and investment

    100 100 100

    100 100 100

    100 100 100

    TestPro Investment Co., Ltd.

    ("TestPro")

    Investment 100 100 100

    (Continued)

    Percentage of Ownership Interests

    Name of Investor

    Name of Investee

    Main Businesses and Products

    March 31,

    2026

    December 31, 2025

    March 31,

    2025

    Note

    TestPro Investment Co., Ltd.

    NavCore Tech. Co., Ltd

    ("NavCore")

    Sale and manufacturing of smart equipment, smart

    54

    54

    54

    factory software and

    hardware integration and technical consulting service

    Prime Asia Investments Group

    Chunghwa Hsingta Co., Ltd.

    ("CHC")

    Investment

    100

    100

    100

    Ltd.

    Chunghwa Precision

    Shanghai Taihua Electronic

    Design of printed circuit board

    100

    100

    100

    Test Tech.

    Technology Limited

    and related consultation

    International, Ltd.

    ("STET")

    Su Zhou Precision Test Tech.

    service

    Assembly processed of circuit

    100

    100

    100

    Ltd. ("SZPT")

    board, design of printed

    circuit board and related consultation service

    International Integrated Systems,

    Unitronics Technology Corp.

    ("UTC")

    Development and maintenance of information system

    100

    100

    100

    Inc.

    Chunghwa Telecom

    Chunghwa Telecom Malaysia

    International private leased

    100

    100

    -

    k.

    Singapore Pte., Ltd.

    SDN. BHD. ("CHTM")

    circuit, IP VPN service, and ICT services

    Chunghwa Digital Cultural and

    Chunghwa Digital Cultural and Creative Fund ("CDCCF")

    Investment

    1

    -

    -

    l.

    Creative Capital

    Co., Ltd

    (Concluded)

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

    2. CHIEF repurchased its stock between February and March 2026 and issued new shares in March 2025 as its employees exercised options. Therefore, the Company's ownership interest in CHIEF changed to 58.56% and 59.29% as of March 31, 2025 and 2026, respectively.

    3. Chunghwa no longer had more than half of seats of the Board of Directors of CHST since January 2025. As a result, the Company lost control over CHST and recognized CHST as an investment in associate. Please refer to Note 14(c) for details.

    4. CLPT issued new shares in December 2025 as its employees exercised options. Therefore, the

      Company's ownership interest in CLPT decreased to 62.03% as of December 31, 2025.

    5. CHTSC conducted its initial public offering through public underwriting in September 2025, and Chunghwa did not participate in the capital increase of CHTSC in accordance with applicable regulations. CHTSC issued new shares in February 2025, May 2025, August 2025 and February 2026 as its employees exercised options. Therefore, the Company's ownership interest in CHTSC decreased to 63.44%, 56.69% and 56.68% as of March 31, 2025, December 31, 2025 and March 31,

      2026, respectively.

    6. IISI was listed in November 2025. Chunghwa did not participate in the capital increase of its initial public offering through public underwriting and disposed of some shares of IISI in accordance with applicable regulations and the price stabilization mechanism. Therefore, the Company's ownership interest in IISI decreased to 44.53% as of December 31 2025. Chunghwa continues to control more than half of seats of the Board of Directors of IISI. As a result, the Company treated IISI as a subsidiary.

    7. Chunghwa invested in and established CHAI in October 2025. Chunghwa obtained 100% ownership interest of CHAI. CHAI's founding employees participated in the capital increase of CHAI in January 2026. Therefore, the Company's ownership interest in CHAI decreased to 80% as of March 31, 2026.

    8. SENAO established SAKUYO in March, 2026. SENAO obtained 100% ownership interest of SAKUYO. As of March 31, 2026, the investment capital had not been remitted.

    9. CHIEF has more than half of seats of the Board of Directors of SCT according to the mutual agreements among stockholders and gained control over SCT; hence, SCT is deemed as a subsidiary of the Company.

    10. CHI disposed of some shares of CHPT from November to December 2025. Therefore, the Company's ownership interest in CHPT decreased to 33.74% as of December 31, 2025. Though the Company's ownership interest in CHPT is less than 50%, the management considered the absolute and relative size of ownership interest, and the dispersion of shares owned by the other stockholders and concluded that the Company has a sufficiently dominant voting interest to direct the relevant activities; hence, CHPT is deemed as a subsidiary of the Company.

    11. CHTS established CHTM in June 2025. The investment capital was remitted in October 2025. CHTS obtained 100% ownership interest in CHTM.

    12. Chunghwa and CDCC Capital jointly established CDCCF in March 2026, with a combined ownership interest of 65%. CDCC Capital acts as the general partner and is responsible for the operation and management of the partnership.

    Chunghwa Telecom Co., Ltd. (Chunghwa)

    100% 27.79% 100% 100%

    100%

    100% 100% 56.04% 100% 56.32% 100% 89%

    100%

    65%

    100% 62.03%

    100% 56.68%

    44.53% 100%

    100%

    Chunghwa Senao Telecom International

    Multimedia Telecom System Telecom Development Entertainment Telecom Telecom Telecom Investment Investments Digital International Leading

    CHYP Chunghwa Chunghwa Chunghwa Light Era Spring House Donghwa CHIEF Chunghwa Chunghwa Prime Asia Smartfun Honghwa Chunghwa Chunghwa

    CHT International Chunghwa

    Chunghwa

    Telecom Security Integrated Digital Cultural Telecom

    Vietnam Co., Ltd. Marketing & Singapore Integration Global, Inc. Co., Ltd. Tech. Inc. Co., Ltd. Inc. Japan Co., Co., Ltd. Group Ltd. Co., Ltd.

    Co., Ltd. Photonics (Thailand) Co., Ltd. Systems, Inc. and Creative Europe

    Co., Ltd. ("SENAO") Communications Pte., Ltd. Co., Ltd. ("CHTG") ("LED") ("SHE") ("DHT") ("CHIEF")

    ("SFD")

    ("HHI")

    Tech Co., Co., Ltd. ("CHTSC") ("IISI") Capital Co., Ltd GmbH

    80%

    CHT

    InventAI Co., Ltd.

    ("CHAI")

    ("CHTV")

    Co., Ltd. ("CHTS") ("CHSI") ("CHYP")

    Ltd. ("CHI") ("Prime

    ("CHTJ") Asia")

    Ltd. ("CHTT")

    ("CLPT")

    ("CDCC ("CHTEU")

    Capital")

    100%

    2.97%

    100% 100%

    Sakuyo Aval

    Health Technologies Science Co., Co., Ltd.

    Ltd. ("Aval")

    ("SAKUYO")

    100%

    Senyoung Insurance Agent Co., Ltd. ("SENYOUNG")

    95.79%

    Youth Co., Ltd.

    ("Youth")

    Chunghwa Telecom Malaysia SDN. BHD. ("CHTM")

    100% 100% 49%

    100% 1%

    Unitronics Chunghwa Digital Technology Cultural and

    Corp. Creative Fund

    ("UTC") ("CDCCF")

    Unigate

    Chief

    Telecom Inc. International

    Shanghai Chief

    ("Unigate") Corp. ("CIC") Telecom

    Co., Ltd.

    ("SCT")

    33.74%

    Chunghwa Precision Test Tech. Co., Ltd.

    ("CHPT")

    64%

    100%

    Chunghwa Hsingta Co., Ltd.

    ("CHC")

    100%

    100%

    0.39%

    Wiin Technology

    Co., Ltd.

    ("Wiin")

    ISPOT Co.,

    Ltd. ("ISPOT")

    100% 100%

    TestPro Chunghwa Investment Co., Precision Test

    Ltd.

    ("TestPro")

    Tech USA Corporation ("CHPT (US)")

    100% 100%

    CHPT Japan Chunghwa

    Co., Ltd. Precision

    ("CHPT (JP)") Test Tech.

    International, Ltd. ("CHPT

    (International)")

    54.25%

    NavCore Tech.

    Co., Ltd

    ("NavCore")

    100%

    Shanghai Taihua Electronic Technology Limited ("STET")

    100%

    Su Zhou Precision Test Tech. Ltd. ("SZPT")

    The following diagram presented information regarding the relationship and percentages of ownership interests between Chunghwa and its subsidiaries as of March 31, 2026.

    Other Material Accounting Policies

    1. 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.

    2. 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.

    3. Convertible bonds

    The component parts of compound instruments (i.e., convertible bonds) issued by the Company are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

    On initial recognition, the fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible instruments. This amount is recognized as a liability and is subsequently measured at amortized cost using the effective interest method until it is extinguished upon conversion or at maturity.

    The conversion option classified as equity is measured as the residual amount, determined by deducting the fair value of the liability component, as separately determined, from the fair value of the compound instrument as a whole. The resulting amount, net of income tax effects, is recognized in equity and is not subsequently remeasured. Upon exercise of the conversion option, the related liability component and the amount recognized in equity are transferred to common stock and additional paid-in capital - share premium. If the conversion option is not exercised upon maturity, the amount recognized in equity is transferred to additional paid-in capital - share premium.

    Transaction costs relating to the issuance of convertible bonds are allocated to the liability and equity components in proportion to the gross proceeds allocated to each component. Transaction costs allocated to the liability component are included in the carrying amount of the liability, while transaction costs allocated to the equity component are recognized directly in equity.

  4. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION, UNCERTAINTY AND ASSUMPTION

    In the application of the Company's accounting policies, the management is required to make judgments, estimates and assumptions which are based on historical experience and other factors that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed by the management on an ongoing basis.

    For the material accounting judgments and key sources of estimation, uncertainty and assumption applied in these consolidated financial statements, please refer to the consolidated financial statements for the year ended December 31, 2025.

  5. APPLICATION OF NEW AND REVISED STANDARDS AND INTERPRETATIONS

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

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

      The Company has applied the amendments to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity, please refer to Note 41 for details.

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

New, Revised or Amended Standards and Interpretations

Effective Date

Announced by IASB

Amendments to IFRS 10 and IAS 28

Sale or Contribution of Assets between an Investor and Its Associate or Joint Venture

To be determined by IASB

IFRS 18 Presentation and Disclosure in Financial Statements

IFRS 19 Subsidiaries without Public Accountability: Disclosures

Amendments to IAS 21 Translation to a Hyperinflationary

Presentation Currency

January 1, 2027 (Note)

January 1, 2027

January 1, 2027

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

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

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

6. CASH AND CASH EQUIVALENTS

March 31, 2026

December 31,

2025

March 31, 2025

Cash

Cash on hand

$ 240,592

$ 309,644

$ 462,783

Bank deposits

13,823,756

19,103,766

11,020,474

Cash equivalents (with maturities of less than

14,064,348

19,413,410

11,483,257

three months) Commercial paper

10,930,203

8,505,138

14,307,959

Time deposits

8,430,810

8,024,798

3,256,322

(Continued)

March 31, 2026

December 31,

2025

March 31, 2025

Negotiable certificates of deposit

$ 1,800,000

$ 1,000,000

$ -

Stimulus vouchers 5,430

860

301

21,166,443

17,530,796

17,564,582

$ 35,230,791

$ 36,944,206

$ 29,047,839

(Concluded)

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

March 31, 2026

December 31,

2025

March 31, 2025

Bank deposits

0.00%~1.98%

0.00%~1.98%

0.00%~2.55%

Commercial paper

0.96%~1.56%

0.96%~1.50%

1.07%~1.53%

Time deposits

0.01%~3.60%

0.01%~3.90%

0.01%~4.45%

Negotiable certificates of deposit

1.59%~1.63%

1.64%

-

  1. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS March 31, 2026 December 31, 2025 March 31, 2025

    Financial assets-current

    Mandatorily measured at FVTPL Derivatives (not designated for hedge)

    Forward exchange contracts $ 250 $ 3,372 $ 5,048

    Financial assets-noncurrent

    Mandatorily measured at FVTPL Non-derivatives

    Non-listed stocks - domestic

    $ 596,900

    $ 616,347

    $ 626,277

    Non-listed stocks - foreign

    25,299

    25,652

    34,979

    Limited partnership - domestic

    558,672

    499,656

    362,982

    Other investing agreements

    58,454

    69,697

    58,580

    $ 1,239,325

    $ 1,211,352

    $ 1,082,818

    Financial liabilities-current

    Held for trading

    Derivatives (not designated for hedge)

    Forward exchange contracts

    $ 1,681

    $ 3

    $ -

    Chunghwa's Board of Directors approved an investment in TRF 1 L.P. at the amount of $300,000

    thousand in January 2025. As of March 31, 2026, Chunghwa invested $180,000 thousand.

    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, 2026, Chunghwa invested

    $400,000 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, 2026

    Forward exchange contracts - buy

    NT$/EUR

    June 2026

    NT$129,875/EUR3,500

    Forward exchange contracts - buy

    NT$/USD

    April 2026

    NT$86,800/USD2,723

    December 31, 2025

    Forward exchange contracts - buy

    NT$/EUR

    March 2026

    NT$88,878/EUR2,500

    Forward exchange contracts - buy

    NT$/USD

    January 2026

    NT$30,039/USD961

    March 31, 2025

    Forward exchange contracts - buy

    NT$/EUR

    June 2025

    NT$78,434/EUR2,300

    Forward exchange contracts - buy

    NT$/USD

    April 2025

    NT$183,337/USD5,560

    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.

  2. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME March 31, 2026 December 31, 2025 March 31, 2025

    Current

    Domestic investments

    Listed and emerging stocks $ - $ 18,555 $ -

    Noncurrent

    Domestic investments

    Listed and emerging stocks

    $ 510,659

    $ 273,916

    $ 117,170

    Non-listed stocks

    4,574,185

    4,923,861

    4,446,802

    Foreign investments

    Listed and emerging stocks

    147,138

    23,431

    -

    Non-listed stocks

    1,475,043

    1,565,595

    736,428

    $ 6,707,025

    $ 6,786,803

    $ 5,300,400

    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.

    CHIEF disposed of all its preferred shares in WT Microelectronics Co., Ltd. in February 2026 upon the redemption of the investment. The fair value of the disposed investment was $18,050 thousand, and the cumulative gain on disposal was $556 thousand.

    The related unrealized gain on financial assets at FVOCI was transferred from other equity to unappropriated earnings at the amount of $313 thousand upon the aforementioned disposal for the three months ended March 31, 2026.

  3. FINANCIAL ASSETS AT AMORTIZED COST - NONCURRENT March 31, 2026 December 31, 2025 March 31, 2025

    Corporate bonds $ 2,020,294 $ 2,020,300 $ 2,000,000

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

    CHTSC acquired the 10-year secured cumulative subordinated corporate bond of Mercuries Life Insurance Co., Ltd. at the amount of $20,300 thousand in December 2025.

  4. TRADE NOTES AND ACCOUNTS RECEIVABLE, NET
March 31, 2026 December 31, 2025 March 31, 2025

Trade notes and accounts receivable $ 30,408,159 $ 28,583,184 $ 23,729,417 Less: Loss allowance (1,261,814) (1,186,761) (1,232,693)

$ 29,146,345 $ 27,396,423 $ 22,496,724

The main credit terms range from 30 to 90 days.

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

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

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

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

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

Except for receivables arising from telecommunications business and project business, the Company's remaining accounts receivable are insignificant. Therefore, only Chunghwa's provision matrix arising from telecommunications business and project business is disclosed below:

Past Due Less

Past Due

Past Due

Past Due

Past Due

Past Due

Not Past Due

than 30 Days

31 to 60 Days

61 to 90 Days

91 to 120 Days

121 to 180 Days

over 180 Days

Total

0%~1%

0%~21%

2%~67%

11%~84%

24%~91%

64%~96%

100%

$ 21,188,053

$ 496,784

$ 150,119

$ 98,682

$ 29,781

$ 26,906

$ 619,946

$ 22,610,271

(52,055 )

(93,231 )

(31,130 )

(34,374 )

(22,065 )

(24,901 )

(619,946 )

(877,702 )

$ 21,135,998

$ 403,553

$ 118,989

$ 64,308

$ 7,716

$ 2,005

$ -

$ 21,732,569

March 31, 2026

Telecommunications

business

Expected credit loss rate (Note a)

Gross carrying amount Loss allowance (lifetime

ECL)

Amortized cost

Project business

(Note b)

0%~5%

5%

10%

30%

50%

80%

100%

ross carrying amount $ 3,123,608

$ 27,089

$ 96,363

$ 53,327

$ 31,967

$ 4,628

$ 283,952

$ 3,620,934

ECL) (1,838 )

(1,354 )

(9,636 )

(15,998 )

(18,546 )

(4,163 )

(283,952 )

(335,487 )

mortized cost $ 3,121,770

$ 25,735

$ 86,727

$ 37,329

$ 13,421

$ 465

$ -

$ 3,285,447

Expected credit loss rate G

Loss allowance (lifetime A

Past Due Less

Past Due

Past Due

Past Due

Past Due

Past Due

Not Past Due

Telecommunications

than 30 Days

31 to 60 Days

61 to 90 Days 9

1 to 120 Days

121 to 180 Days

over 180 Days

Total

Expected credit loss rate

(Note a) 0%~1%

2%~21%

2%~67%

13%~84%

27%~91%

55%~96%

100%

Gross carrying amount

Loss allowance (lifetime

$ 16,807,075

$ 418,784

$ 173,148

$ 41,197

$ 37,662

$ 29,047

$ 615,221

$ 18,122,134

ECL) (52,137 )

(27,067 )

(31,146 )

(34,576 )

(30,721 )

(26,420 )

(615,221 )

(817,288 )

Amortized cost $ 16,754,938

$ 391,717

$ 142,002

$ 6,621

$ 6,941

$ 2,627

$ -

$ 17,304,846

December 31, 2025

business

Project business

(Note b)

0%~5%

5%

10%

30%

50%

80%

100%

ross carrying amount $ 5,635,620

$ 51,025

$ 5,712

$ 26,064

$ 43,229

$ 65

$ 286,482

$ 6,048,197

ECL) (2,477 )

(2,551 )

(571 )

(7,819 )

(28,740 )

(52 )

(286,482 )

(328,692 )

mortized cost $ 5,633,143

$ 48,474

$ 5,141

$ 18,245

$ 14,489

$ 13

$ -

$ 5,719,505

Expected credit loss rate G

Loss allowance (lifetime A