EX-99.3

The Company has prepared its consolidated balance sheets as of June 30, 2018 and 2017, the related consolidated statements of comprehensive income for the three months ended June 30, 2018 and 2017, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the six months ended June 30, 2018 and 2017 in accordance with IAS 34 “Interim Financial Reporting” as issued by the International Accounting Standard 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.

Except for the effect of application of IFRS 9 and IFRS 15 discussed below, the application of other new, revised or amended standards and interpretations effective from January 1, 2018 does not have material impact on the Company’s consolidated financial statements.

IFRS 9 supersedes IAS 39 “Financial Instruments: Recognition and Measurement”, with consequential amendments to IFRS 7 “Financial Instruments: Disclosures” and other standards. IFRS 9 sets out the requirements for classification, measurement and impairment of financial assets and hedge accounting.

The requirements for classification, measurement and impairment of financial assets have been applied retrospectively on January 1, 2018, and the requirements for hedge accounting have been applied prospectively. IFRS 9 is not applicable to items that have already been derecognized on or before December 31, 2017.

On the basis of the facts and circumstances that existed on January 1, 2018, the Company performed an assessment of the classifications of financial assets and elected not to restate the comparative figures.

The following table shows the original measurement categories and carrying amounts under IAS 39 and the new measurement categories and carrying amounts under IFRS 9 for each class of the Company’s financial assets and financial liabilities as of January 1, 2018.


	IAS 39 Carrying Amount January 1, 2018			Reclassifi- cations			Remea- surements		IFRS 9 Carrying Amount January 1, 2018			Retained Earnings effect on January 1, 2018		Other adjustment effect on January 1, 2018			Noncontrolling interests effect on January 1, 2018			Note
Financial assets measured at FVTPL	$	—		$	—		$	—	$	—		$	—	$	—		$	—
Add: reclassification from available for sale (IAS 39) - mandatory reclassification		—			54			—		54			6		(6	)		—			2	)

		—			54			—		54			6		(6	)		—

Financial liabilities measured at FVTPL		(1	)		—			—		(1	)		—		—			—

Financial assets measured at FVOCI- equity investments		—			—			—		—			—		—			—
Add: reclassification from available for sale (IAS 39)—designated at January 1, 2018		—			5,697			1,842		7,539			1,516		327			(1	)		2	)

		—			5,697			1,842		7,539			1,516		327			(1	)

Financial assets measured at Amortized cost		—			—			—		—			—		—			—
Add: reclassification from loans and receivables (IAS 39)		—			68,983			—		68,983			—		—			—			1	)

		—			68,983			—		68,983			—		—			—

Financial liabilities measured at amortized cost		—			—			—		—			—		—			—
Add: reclassification from amortized cost (IAS 39)		—			(39,725	)		—		(39,725	)		—		—			—

		—			(39,725	)		—		(39,725	)		—		—			—

Hedging financial liabilities		—			—			—		—			—		—			—
Add: reclassification from Hedging derivative instrument (IAS 39)		—			(1	)		—		(1	)		—		—			—			3	)

		—			(1	)		—		(1	)		—		—			—

Total	$	(1	)	$	35,008		$	1,842	$	36,849		$	1,522	$	321		$	(1	)

Equity investments in non-listed stocks previously carried at cost under IAS 39 are designated as FVOCI and remeasured at fair values. As a result, financial assets at FVOCI and other equity—unrealized gain or loss on financial assets at FVOCI were increased by $1,842 million and $1,843 million, respectively, and noncontrolling interest was decreased by $1 million.

The Company recognized impairment loss on certain investments in equity securities previously classified as available-for-sale and measured at cost and the loss was accumulated in retained earnings under IAS 39. Since those investments were designated as financial assets measured at FVOCI under IFRS 9 and no impairment assessment is required, an adjustment was made that resulted in a decrease of $1,516 million in other equity—unrealized gain or loss on financial assets at FVOCI and an increase of the $1,516 million in retained earnings on January 1, 2018.

3) Due to the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers, all derivative and non-derivative financial assets and financial liabilities which were designated as hedging instruments are presented as hedging financial assets and hedging financial liabilities for starting from January 1, 2018.

As the Company expects there is no tax obligations upon the disposal of the available-for-sale financial assets, the deferred income tax liabilities was decreased by $1 million, unrealized gain or loss on available-for-sale financial assets was increased by $4 million and noncontrolling interests was decreased by of $3 million respectively.

IFRS 15 establishes principles for recognizing revenue that apply to all contracts with customers, and supersedes IAS 18 “Revenue”, IAS 11 “Construction Contracts” and a number of revenue-related interpretations.

When applying IFRS 15 and related amendments, the Company allocates the transaction price to each performance obligation identified in the contract on a relative stand-alone selling price basis.

Where the Company enters into transactions which involve both the provision of telecommunications service bundled with products such as handsets, total consideration received from products and telecommunications service in these arrangements is allocated based on each performance obligation’s relative stand-alone selling price. The amount of sales revenue recognized for products is no longer limited to the amount paid by the customer for the products. This will not change the total revenue recognized, but will change the timing of revenue recognition. The Company may recognize more revenue at the beginning of the contract period (i.e., at the time of sale of products), and revenue recognized for telecommunications service in the subsequent contract periods will decrease.

Incremental costs of obtaining contracts will be recognized as an asset to the extent the Company expects to recover those costs. Such asset will be amortized on a basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. Before the application of IFRS 15, the relevant expenditures were recognized as expenses.

IFRS 15 and its related amendments require that when another party is involved in providing goods or services to a customer, the Company is a principal if it controls the specified good or service before that good or service is transferred to a customer. Before the application of IFRS 15, the Company determines whether it is a principal or an agent based on its exposure to the significant risks and rewards associated with the sale of goods or the rendering of services.

Under IFRS 15, the net effect of revenue recognizes, consideration received and receivable is recognized as a contract asset or a contract liability. Before the application of IFRS 15, receivable is recognized or advance receipts and deferred revenue was reduced when revenue was recognized for the contract under IAS 18.

Under IFRS 15, the Company recognized a trade-in liability (other current liabilities) and a right to recover a product (other current assets) when recognizing revenue for the sale with a trade-in right. Before the application of IFRS 15, trade-in right provisions and inventories were recognized when recognizing revenue.

The Company elected to retrospectively apply IFRS 15 to contracts that were not completed on January 1, 2018 and recognized the cumulative effect of the change in the retained earnings on January 1, 2018.

The following table shows the increase (decrease) in assets, liabilities and equity resulting from the application of IFRS 15 on the balance sheet date.


	June 30, 2018 (Unaudited)			December 31, 2017 (Audited)			June 30, 2017 (Unaudited)
ASSETS		Amount	%		Amount	%		Amount	%
CURRENT ASSETS
Cash and cash equivalents	$	43,844	9	$	28,825	7	$	48,310	11
Financial assets at fair value through profit or loss		277	—		—	—		7	—
Hedging derivative financial assets		—	—		—	—		1	—
Held-to-maturity financial assets		—	—		—	—		900	—
Contract assets		5,233	1		—	—		—	—
Trade notes and accounts receivable, net		29,224	6		31,941	7		29,643	6
Receivables from related parties		31	—		49	—		24	—
Inventories		11,938	2		8,840	2		9,329	2
Prepayments		5,689	1		2,188	—		5,215	1
Other current monetary assets		6,619	1		5,308	1		6,613	2
Other current assets		3,677	1		2,183	—		2,113	—

Total current assets		106,532	21		79,334	17		102,155	22

NONCURRENT ASSETS
Financial assets at fair value through other comprehensive income		7,052	1		—	—		—	—
Available-for-sale financial assets		—	—		5,751	1		4,729	1
Investments accounted for using equity method		2,353	1		2,326	1		2,257	—
Contract assets		2,562	1		—	—		—	—
Property, plant and equipment		285,685	60		288,708	64		283,306	62
Investment properties		8,043	2		8,048	2		8,100	2
Intangible assets		52,805	11		54,883	12		45,631	10
Deferred income tax assets		3,269	1		2,730	1		2,363	1
Incremental costs of obtaining contracts		1,841	—		—	—		—	—
Net defined benefit assets		1,184	—		13	—		1,072	—
Prepayments		3,375	1		3,573	1		3,820	1
Other noncurrent assets		5,372	1		5,536	1		4,858	1

Total noncurrent assets		373,541	79		371,568	83		356,136	78

TOTAL	$	480,073	100	$	450,902	100	$	458,291	100

LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term loans	$	80	—	$	70	—	$	125	—
Financial liabilities at fair value through profit or loss		—	—		1	—		—	—
Hedging derivative financial liabilities		—	—		1	—		—	—
Hedging financial liabilities		—	—		—	—		—	—
Contract liabilities		9,735	2		—	—		—	—
Trade notes and accounts payable		17,115	4		19,396	4		14,902	3
Payables to related parties		425	—		684	—		548	—
Current tax liabilities		5,575	1		8,674	2		6,398	2
Dividends payables		37,205	8		—	—		38,336	8
Other payables		22,892	5		25,001	6		21,082	5
Provisions		105	—		189	—		125	—
Advance receipts		—	—		8,842	2		8,825	2
Other current liabilities		1,298	—		1,081	—		1,224	—

Total current liabilities		94,430	20		63,939	14		91,565	20

NONCURRENT LIABILITIES
Contract liabilities		2,360	1		—	—		—	—
Long-term loans		1,600	—		1,600	—		1,600	—
Deferred income taxes liabilities		2,040	—		1,430	—		1,473	—
Provisions		81	—		78	—		68	—
Customers’ deposits		4,627	1		4,671	1		4,524	1
Net defined benefit liabilities		2,036	—		2,704	1		1,544	—
Deferred revenue		—	—		3,612	1		3,549	1
Other noncurrent liabilities		4,726	1		3,458	1		3,777	1

Total noncurrent liabilities		17,470	3		17,553	4		16,535	3

Total liabilities		111,900	23		81,492	18		108,100	23


	June 30, 2018 (Unaudited)			December 31, 2017 (Audited)			June 30, 2017 (Unaudited)
EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE PARENT
Common stocks		77,574	16		77,574	17		77,574		17

Additional paid-in capital		149,455	31		148,091	33		147,266		32

Retained earnings
Legal reserve		77,574	16		77,574	17		77,574		17
Special reserve		2,676	1		2,681	1		2,681		1
Unappropriated earnings		51,503	11		54,633	12		39,248		9

Total retained earnings		131,753	28		134,888	30		119,503		27

Other adjustments		80	—		383	—		(197	)	—

Total equity attributable to stockholders of the parent		358,862	75		360,936	80		344,146		76
NONCONTROLLING INTERESTS		9,311	2		8,474	2		6,045		1

Total equity		368,173	77		369,410	82		350,191		77

TOTAL	$	480,073	100	$	450,902	100	$	458,291		100


	Three Months Ended June 30												Six Months Ended June 30
	2018						2017						2018					2017
	Amount			%			Amount			%			Amount			%		Amount			%
REVENUES	$	53,659			100		$	55,672			100		$	107,291			100	$	110,205			100
OPERATING COSTS		33,193			62			35,078			63			67,643			63		69,699			63

GROSS PROFIT		20,466			38			20,594			37			39,648			37		40,506			37

OPERATING EXPENSES
Marketing		5,955			11			6,153			11			11,608			10		12,435			11
General and administrative		1,168			2			1,158			2			2,359			2		2,322			2
Research and development		910			2			958			2			1,835			2		1,879			2
Expected credit loss		370			1			—			—			768			1		—			—

Total operating expenses		8,403			16			8,269			15			16,570			15		16,636			15

OTHER INCOME AND EXPENSES		(9	)		—			(5	)		—			(81	)		—		(17	)		—

INCOME FROM OPERATIONS		12,054			22			12,320			22			22,997			22		23,853			22

NON-OPERATING INCOME AND EXPENSES
Interest income		59			—			63			—			98			—		107			—
Other income		301			1			444			1			357			—		504			—
Other gains and losses		12			—			(44	)		—			(21	)		—		—			—
Interest expenses		(5	)		—			(5	)		—			(9	)		—		(11	)		—
Share of profits of associates and joint ventures accounted for using equity method		127			—			122			—			207			—		240			—

Total non-operating income and expenses		494			1			580			1			632			—		840			—

INCOME BEFORE INCOME TAX		12,548			23			12,900			23			23,629			22		24,693			22
INCOME TAX EXPENSE (BENEFIT)		(965	)		(2	)		(825	)		(2	)		1,593			1		2,114			2

NET INCOME		13,513			25			13,725			25			22,036			21		22,579			20

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		(453	)		—			—			—			(687	)		—		—			—
Gain or loss on hedging instruments subject to basis adjustment		—			—			—			—			1			—		—			—
Income tax benefit relating to items that will not be reclassified to profit or loss		—			—			—			—			207			—		—			—

		(453	)		—			—			—			(479	)		—		—			—

Items that may be reclassified subsequently to profit or loss:
Exchange differences arising from the translation of the foreign operations		119			—			28			—			67			—		(186	)		—
Unrealized loss on available-for-sale financial assets		—			—			(356	)		(1	)		—			—		(29	)		—
Cash flow hedges		—			—			3			—			—			—		2			—


	Three Months Ended June 30												Six Months Ended June 30
	2018						2017						2018					2017
	Amount			%			Amount			%			Amount			%		Amount			%
Share of exchange differences arising from the translation of the foreign operations of associates and joint ventures	$	1			—		$	—			—		$	2			—	$	(3	)		—
Income tax benefit relating to items that may be reclassified subsequently to profit or loss		—			—			1			—			—			—		2			—

		120			—			(324	)		(1	)		69			—		(214	)		—

Total other comprehensive loss, net of income tax		(333	)		(1	)		(324	)		(1	)		(410	)		—		(214	)		—

TOTAL COMPREHENSIVE INCOME		13,180			24			13,401			24			21,626			21		22,365			20

NET INCOME ATTRIBUTABLE TO
Stockholders of the parent	$	13,204			25		$	13,305			24		$	21,471			20	$	21,932			20
Noncontrolling interests		309			—			420			1			565			1		647			—

	$	13,513			25		$	13,725			25		$	22,036			21	$	22,579			20

COMPREHENSIVE INCOME ATTRIBUTABLE TO
Stockholders of the parent	$	12,867			24		$	12,975			23		$	21,049			20	$	21,740			20
Noncontrolling interests		313			—			426			1			577			1		625			—

	$	13,180			24		$	13,401			24		$	21,626			21	$	22,365			20


EARNINGS PER SHARE
Basic	$	1.70					$	1.72					$	2.77				$	2.83

Diluted	$	1.70					$	1.71					$	2.76				$	2.82


	Six Months Ended June 30
	2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$	23,629		$	24,693
Adjustments to reconcile income before income tax to net cash provided by operating activities:
Depreciation		13,759			14,304
Amortization		2,175			1,800
Amortization of incremental costs of obtaining contracts		1,098			—
Expected credit loss		768			—
Provision for doubtful accounts		—			391
Interest expenses		9			11
Interest income		(98	)		(107	)
Dividend income		(231	)		(312	)
Compensation cost of share-based payment transactions		16			11
Share of profits of associates and joint ventures accounted for using equity method		(207	)		(240	)
Loss on disposal of property, plant and equipment		30			17
Gain on disposal of financial instruments		(6	)		(3	)
Loss on disposal of investments accounted for using equity method		—			—
Provision for inventory and obsolescence		36			18
Impairment loss on intangible assets		51			—
Valuation gain on financial assets and liabilities at fair value through profit or loss, net		—			(8	)
Loss (gain) on foreign exchange, net		(3	)		47
Changes in operating assets and liabilities:
Decrease (increase) in:
Financial assets held for trading		—			—
Financial assets mandatorily measured at fair value through profit or loss		(219	)		—
Contract assets		2,187			—
Trade notes and accounts receivable		1,978			1,140
Receivables from related parties		19			(10	)
Inventories		(3,267	)		(1,924	)
Prepayments		(3,310	)		(2,816	)
Other current monetary assets		(244	)		(178	)
Other current assets		(1,362	)		9
Incremental cost of obtaining contracts		(465	)		—
Increase (decrease) in:
Contract liabilities		1,465			—
Trade notes and accounts payable		(2,283	)		(3,908	)
Payables to related parties		(259	)		(214	)
Other payables		(2,578	)		(3,194	)
Provisions		6			8
Advance receipts		—			(465	)


	Equity Attributable to Stockholders of the Parent
															Other Adjustments
															Exchange Differences			Unrealized Gain			Unrealized
					Retained Earnings										Arising from the			or Loss on			Gain or Loss										Total Equity
	Common Stocks		Additional Paid-in Capital		Legal Reserve		Special Reserve		Unappropriated Earnings			Total Retained Earnings			Translation of the Foreign Operations			Available-for -sale Financial Assets			on Financial Assets at FVOCI		Cash Flow Hedges			Gain or Loss on Hedging Instruments		Total Other Adjustments			Attributable to Stockholders of the Parent			Noncontrolling Interests			Total Equity
BALANCE, JANUARY 1, 2017	$	77,574	$	147,180	$	77,574	$	2,676	$	55,657		$	135,907		$	46		$	(51	)	$	—	$	—		$	—	$	(5	)	$	360,656		$	6,272		$	366,928
Appropriation of 2016 earnings
Provision for special reserve		—		—		—		5		(5	)		—			—			—			—		—			—		—			—			—			—
Cash dividends distributed by Chunghwa		—		—		—		—		(38,336	)		(38,336	)		—			—			—		—			—		—			(38,336	)		—			(38,336	)
Cash dividends distributed by subsidiaries		—		—		—		—		—			—			—			—			—		—			—		—			—			(937	)		(937	)
Partial disposal of interests in subsidiaries		—		77		—		—		—			—			—			—			—		—			—		—			77			29			106
Net income for the six months ended June 30, 2017		—		—		—		—		21,932			21,932			—			—			—		—			—		—			21,932			647			22,579
Other comprehensive income (loss) for the six months ended June 30, 2017		—		—		—		—		—			—			(168	)		(26	)		—		2			—		(192	)		(192	)		(22	)		(214	)

Total comprehensive income for the six months ended June 30, 2017		—		—		—		—		21,932			21,932			(168	)		(26	)		—		2			—		(192	)		21,740			625			22,365

Share-based payment transactions of subsidiaries		—		—		—		—		—			—			—			—			—		—			—		—			—			11			11
Net increase in noncontrolling interests		—		9		—		—		—			—			—			—			—		—			—		—			9			45			54

BALANCE, JUNE 30, 2017	$	77,574	$	147,266	$	77,574	$	2,681	$	39,248		$	119,503		$	(122	)	$	(77	)	$	—	$	2		$	—	$	(197	)	$	344,146		$	6,045		$	350,191

BALANCE, JANUARY 1, 2018	$	77,574	$	148,091	$	77,574	$	2,681	$	54,633		$	134,888		$	(174	)	$	558		$	—	$	(1	)	$	—	$	383		$	360,936		$	8,474		$	369,410


	Measurement category				Carrying amount
	IAS 39		IFRS 9		IAS 39		IFRS 9		Note
Financial assets
Cash and cash equivalents		Loans and receivables		Amortized cost	$	28,825	$	28,825		1	)
Equity securities		Available-for-sale		Fair value through profit and loss (FVTPL)		54		54		2	)
		Available-for-sale		Fair value through other comprehensive income (FVOCI) - equity investments		5,697		7,539		2	)
Trade notes and accounts receivable, receivables from related parties, other current monetary assets and refundable deposits		Loans and receivables		Amortized cost	$	40,158	$	40,158		1	)
Financial Liabilities
Short-term loans, trade notes and accounts payable, payables to related parties, partial other payables, customers’ deposit and loan-term loans		Amortized cost		Amortized cost		39,725		39,725
Derivatives		Held-for-trading		FVTPL		1		1
		Hedging derivative financial liabilities		Hedging financial liabilities		1		1		3	)


	Carrying amounts before retrospective adjustments as of January 1, 2018		Adjustments Arising from Initial Application			Carrying amounts after retrospective adjustments as of January 1, 2018
Contract assets—current	$	—	$	6,065		$	6,065

Trade notes and accounts receivable, net	$	31,941		(118	)	$	31,823

Inventories	$	8,840		(132	)	$	8,708

Prepayments—current	$	2,188		(7	)	$	2,181

Other current assets	$	2,183		132		$	2,315

Contract assets—noncurrent	$	—		3,917		$	3,917

Incremental costs of obtaining contracts	$	—		2,474		$	2,474

Total effect on assets			$	12,331

Contract liabilities—current	$	—	$	8,004		$	8,004

Current tax liabilities	$	8,674		2,227		$	10,901

Provisions - current	$	189		(88	)	$	101

Advance receipts	$	8,842		(8,842	)	$	—

Other current liabilities	$	1,081		72		$	1,153

Contract liabilities—noncurrent	$	—		2,626		$	2,626

Deferred revenue	$	3,612		(3,612	)	$	—

Other noncurrent liabilities	$	3,458		1,072		$	4,530

Total effect on liabilities			$	1,459

Total effect on equity (unappropriated earnings)	$	54,633	$	10,872		$	65,505


	June 30, 2018
Contract assets — current	$	5,233
Trade notes and accounts receivable, net		(121	)
Inventories		(82	)
Prepayments — current		(10	)
Other current assets		82
Contract assets — noncurrent		2,562
Incremental costs of obtaining contracts		1,841

Assets	$	9,505

Contract liabilities—current	$	9,735
Current tax liabilities		1,633
Provisions - current		(54	)
Advance receipts		(10,388	)
Other current liabilities		215
Contract liabilities—noncurrent		2,360
Deferred revenue		(3,376	)
Other noncurrent liabilities		1,057

Liabilities	$	1,182

Equity (unappropriated earnings)	$	8,323


	Three months ended June 30, 2018			Six months ended June 30, 2018
Revenues	$	(2,249	)	$	(2,507	)
Operating costs		361			702
Operating expenses		82			(67	)

Income from operations		(2,692	)		(3,142	)
Income tax expense		(509	)		(594	)

Net income	$	(2,183	)	$	(2,548	)

Decrease in net income attributable to:
Stockholders of the parent	$	(2,183	)	$	(2,548	)
Noncontrolling interests		—			—

	$	(2,183	)	$	(2,548	)

Impact on earnings per share:
Basic earnings per share	$	(0.28	)	$	(0.33	)

Diluted earnings per share	$	(0.28	)	$	(0.33	)