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 November 4, 2022

Chunghwa Telecom Co., Ltd.

(Translation of Registrant’s Name into English)

21-3 Hsinyi 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)

Exhibit	Description
99.1	To announce the differences between consolidated financial statements for the nine months ended September 30, 2022 under Taiwan-IFRSs and that under IFRSs
99.2	Consolidated Financial Statements for the Nine Months Ended September 30, 2022 and 2021 and Independent Auditors’ Review Report pursuant to International Financial Reporting Standards adopted by ROC (“Taiwan-IFRSs”)
99.3	Consolidated Financial Statements for the Nine Months Ended September 30, 2022 and 2021 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: November 4, 2022

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 nine months ended September 30, 2022 under Taiwan-IFRSs and that under IFRSs

Date of events: 2022/11/4

Contents:

1. Date of occurrence of the event: 2022/11/4

2. Of which year/ quarter financial report required to be adjusted: The third quarter of 2022

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$9,776,130 thousand and NT$29,202,599 thousand, consolidated net income attributable to stockholders of the parent of NT$9,359,249 thousand and NT$28,075,670 thousand, and basic earnings per share of NT$1.21 and NT$3.62 for the three months and nine months ended September 30, 2022, respectively. The Company also reported total consolidated assets of NT$503,590,240 thousand, total consolidated liabilities of NT$119,516,433 thousand, and total consolidated equity of NT$384,073,807 thousand as of September 30, 2022.

5. Accounting principles applied (securities issued overseas):

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

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

Under IFRSs, the Company reported consolidated net income of NT$9,259 million and NT$29,606 million, consolidated net income attributable to stockholders of the parent of NT$8,865 million and NT$28,466 million, and basic earnings per share of NT$1.14 and NT$3.67 for the three months and nine months ended September 30, 2022, respectively. The Company also reported total consolidated assets of NT$503,389 million, total consolidated liabilities of NT$121,043 million, and total consolidated equity of NT$382,346 million as of September 30, 2022.

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

Nine Months Ended September 30, 2022 and 2021 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 September 30, 2022 and 2021, the related consolidated statements of comprehensive income for the three months ended September 30, 2022 and 2021 and for the nine months ended September 30, 2022 and 2021, of changes in equity, and cash flows for the nine months then ended, and 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 Statement of Auditing Standards No. 65 “Review of 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 September 30, 2022 and 2021, its consolidated financial performance for the three months ended September 30, 2022 and 2021, and its consolidated financial performance and its consolidated cash flows for the nine months ended September 30, 2022 and 2021 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

November 4, 2022

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)

	September 30, 2022 (Reviewed)					December 31, 2021 (Audited)					September 30, 2021 (Reviewed)
ASSETS	Amount			%		Amount			%		Amount			%
CURRENT ASSETS
Cash and cash equivalents (Note 6)	$	32,898,094			7	$	39,778,624			8	$	23,577,346			4
Financial assets at fair value through profit or loss (Note 7)		4,203			—		2,566			—		2,401			—
Hedging financial assets (Note 20)		12,752			—		—			—		—			—
Contract assets (Note 29)		5,702,487			1		5,554,070			1		5,340,164			1
Trade notes and accounts receivable, net (Notes 9 and 29)		22,278,929			4		23,947,107			5		21,381,611			4
Receivables from related parties (Note 37)		107,116			—		41,528			—		66,361			—
Inventories (Note 10)		12,336,979			2		11,327,409			2		13,080,419			3
Prepayments (Note 11)		5,110,205			1		2,330,097			—		5,077,953			1
Other current monetary assets (Notes 12 and 34)		4,361,591			1		5,060,878			1		5,241,261			1
Other current assets (Notes 18, 19 and 38)		4,007,887			1		2,978,780			1		3,093,606			1
Total current assets		86,820,243			17		91,021,059			18		76,861,122			15
NONCURRENT ASSETS
Financial assets at fair value through profit or loss (Note 7)		1,050,714			—		908,775			—		1,231,096			—
Financial assets at fair value through other comprehensive income (Notes 8 and 34)		3,484,018			1		3,615,888			1		3,334,970			1
Investments accounted for using equity method (Notes 14 and 34)		7,200,176			1		7,332,774			2		7,236,929			2
Contract assets (Note 29)		2,966,660			1		2,607,744			—		2,375,636			—
Property, plant and equipment (Notes 15, 34, 37 and 38)		286,300,996			57		289,100,461			56		284,620,855			58
Right-of-use assets (Notes 16 and 37)		11,234,158			2		11,050,936			2		10,491,845			2
Investment properties (Note 17)		9,707,458			2		9,662,638			2		9,589,763			2
Intangible assets (Notes 18 and 37)		80,794,433			16		83,945,083			16		85,490,442			17
Deferred income tax assets (Note 3)		2,615,752			1		2,785,006			1		3,015,458			1
Incremental costs of obtaining contracts (Note 29)		967,012			—		987,656			—		971,665			—
Net defined benefit assets (Note 3)		3,901,443			1		3,391,077			1		3,929,023			1
Prepayments (Note 11)		1,922,374			—		1,798,463			—		1,891,625			—
Other noncurrent assets (Notes 19, 38 and 39)		4,624,803			1		4,862,800			1		4,841,387			1
Total noncurrent assets		416,769,997			83		422,049,301			82		419,020,694			85
TOTAL	$	503,590,240			100	$	513,070,360			100	$	495,881,816			100
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term loans (Note 21)	$	592,000			—	$	65,000			—	$	66,000			—
Financial liabilities at fair value through profit or loss (Note 7)		—			—		6,180			—		—			—
Hedging financial liabilities (Note 20)		—			—		8,286			—		9,330			—
Contract liabilities (Note 29)		13,611,671			3		12,234,276			2		13,905,112			3
Trade notes and accounts payable (Note 24)		13,160,237			3		18,063,288			4		13,695,667			3
Payables to related parties (Note 37)		476,286			—		391,358			—		485,332			—
Current tax liabilities (Note 3)		3,207,876			1		4,593,458			1		2,794,089			1
Lease liabilities (Notes 16, 34 and 37)		3,216,442			1		3,210,564			1		3,243,039			1
Other payables (Notes 25 and 34)		20,895,752			3		24,436,708			5		23,670,300			4
Provisions (Note 26)		225,903			—		284,813			—		257,945			—
Other current liabilities		1,000,044			—		998,367			—		920,909			—
Total current liabilities		56,386,211			11		64,292,298			13		59,047,723			12
NONCURRENT LIABILITIES
Long-term loans (Notes 22 and 38)		1,600,000			—		1,600,000			—		1,600,000			—
Bonds payable (Note 23)		30,476,032			6		26,976,675			6		26,975,582			5
Contract liabilities (Note 29)		7,124,477			1		6,840,056			1		6,819,317			2
Deferred income tax liabilities (Note 3)		2,248,402			1		2,189,411			—		2,188,487			—
Provisions (Note 26)		157,220			—		141,865			—		132,775			—
Lease liabilities (Notes 16, 34 and 37)		7,345,934			2		7,061,689			2		5,948,847			1
Customers’ deposits (Note 37)		5,075,856			1		5,336,343			1		4,826,659			1
Net defined benefit liabilities (Note 3)		2,268,121			1		2,287,663			—		3,434,689			1
Other noncurrent liabilities		6,834,180			1		5,081,910			1		3,081,834			1
Total noncurrent liabilities		63,130,222			13		57,515,612			11		55,008,190			11
Total liabilities		119,516,433			24		121,807,910			24		114,055,913			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			16
Additional paid-in capital		171,295,803			34		171,279,625			33		171,279,116			34
Retained earnings
Legal reserve		77,574,465			15		77,574,465			15		77,574,465			16
Special reserve		3,083,569			1		2,675,419			1		2,675,419			1
Unappropriated earnings		42,561,752			9		50,639,022			10		41,723,981			8
Total retained earnings		123,219,786			25		130,888,906			26		121,973,865			25
Others		(181,654	)		—		(408,150	)		—		(483,416	)		—
Total equity attributable to stockholders of the parent		371,908,400			74		379,334,846			74		370,344,030			75
NONCONTROLLING INTERESTS (Notes 13 and 28)		12,165,407			2		11,927,604			2		11,481,873			2
Total equity		384,073,807			76		391,262,450			76		381,825,903			77
TOTAL	$	503,590,240			100	$	513,070,360			100	$	495,881,816			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 September 30										Nine Months Ended September 30
	2022					2021					2022					2021
	Amount			%		Amount			%		Amount			%		Amount			%
REVENUES (Notes 29, 37 and 43)	$	53,507,811			100	$	50,885,502			100	$	157,238,260			100	$	150,587,632			100
OPERATING COSTS (Notes 10, 27, 29, 30, 37 and 43)		33,174,844			62		32,045,819			63		97,211,557			62		94,996,966			63
GROSS PROFIT		20,332,967			38		18,839,683			37		60,026,703			38		55,590,666			37
OPERATING EXPENSES (Notes 9, 27, 30, 37 and 43)
Marketing		5,605,147			10		5,133,627			10		16,641,971			10		15,063,012			10
General and administrative		1,540,159			3		1,223,057			2		4,630,572			3		3,805,637			2
Research and development		982,736			2		935,528			2		2,785,315			2		2,703,773			2
Expected credit loss		21,517			—		100,706			—		95,102			—		187,601			—
Total operating expenses		8,149,559			15		7,392,918			14		24,152,960			15		21,760,023			14
OTHER INCOME AND EXPENSES (Note 30)		(1,571	)		—		(4,904	)		—		(6,013	)		—		(2,114	)		—
INCOME FROM OPERATIONS		12,181,837			23		11,441,861			23		35,867,730			23		33,828,529			23
NON-OPERATING INCOME AND EXPENSES
Interest income		58,013			—		27,717			—		146,294			—		74,071			—
Other income (Notes 30 and 37)		68,626			—		210,946			—		322,537			—		301,795			—
Other gains and losses (Notes 30, 36 and 37)		(118,066	)		—		411,087			1		(163,661	)		—		669,930			—
Interest expenses (Notes 16, 30 and 37)		(69,312	)		—		(56,089	)		—		(190,264	)		—		(161,831	)		—
Share of profits of associates and joint ventures accounted for using equity method (Note 14)		85,157			—		65,996			—		400,910			—		174,314			—
Total non-operating income and expenses		24,418			—		659,657			1		515,816			—		1,058,279			—
INCOME BEFORE INCOME TAX		12,206,255			23		12,101,518			24		36,383,546			23		34,886,808			23
INCOME TAX EXPENSE (Notes 3 and 31)		2,430,125			5		2,368,741			5		7,180,947			4		6,762,940			4
NET INCOME		9,776,130			18		9,732,777			19		29,202,599			19		28,123,868			19
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)		(4,192	)		—		(240,364	)		—		(127,988	)		—		(1,250,774	)		(1	)

(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 September 30									Nine Months Ended September 30
	2022				2021					2022					2021
	Amount		%		Amount			%		Amount			%		Amount			%
Gain or loss on hedging instruments subject to basis adjustment (Note 20)	$	20,052		—	$	4,683			—	$	21,038			—	$	(11,082	)		—
Share of other comprehensive income (loss) of associates and joint ventures (Note 14)		2,382		—		—			—		3,906			—		758			—
		18,242		—		(235,681	)		—		(103,044	)		—		(1,261,098	)		(1	)
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising from the translation of the foreign operations		187,978		—		(15,890	)		—		339,824			—		(63,445	)		—
Share of other comprehensive income (loss) of associates and joint ventures (Note 14)		2,948		—		(2	)		—		4,535			—		(1,145	)		—
		190,926		—		(15,892	)		—		344,359			—		(64,590	)		—
Total other comprehensive income (loss), net of income tax		209,168		—		(251,573	)		—		241,315			—		(1,325,688	)		(1	)
TOTAL COMPREHENSIVE INCOME	$	9,985,298		18	$	9,481,204			19	$	29,443,914			19	$	26,798,180			18
NET INCOME ATTRIBUTABLE TO
Stockholders of the parent	$	9,359,249		17	$	9,366,784			18	$	28,075,670			18	$	27,119,256			18
Noncontrolling interests		416,881		1		365,993			1		1,126,929			1		1,004,612			1
	$	9,776,130		18	$	9,732,777			19	$	29,202,599			19	$	28,123,868			19
COMPREHENSIVE INCOME ATTRIBUTABLE TO
Stockholders of the parent	$	9,554,578		17	$	9,119,447			18	$	28,303,690			18	$	25,798,842			17
Noncontrolling interests		430,720		1		361,757			1		1,140,224			1		999,338			1
	$	9,985,298		18	$	9,481,204			19	$	29,443,914			19	$	26,798,180			18
EARNINGS PER SHARE (Note 32)
Basic	$	1.21			$	1.21				$	3.62				$	3.50
Diluted	$	1.21			$	1.21				$	3.62				$	3.49

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)																								Noncontrolling Interests (Notes 13 and 28)			Total Equity
													Others									Total
													Exchange Differences Arising from the Translation of the Foreign Operations			Unrealized Gain or Loss on Financial Assets at Fair Value Through Other Comprehensive Income			Gain or Loss on Hedging Instruments
						Retained Earnings
			Additional							Unappropriated
	Common Stocks		Paid-in Capital			Legal Reserve		Special Reserve		Earnings
BALANCE, JANUARY 1, 2021	$	77,574,465	$	171,261,379		$	77,574,465	$	2,675,419	$	47,918,166		$	(314,531	)	$	1,239,901		$	1,752		$	377,931,016		$	11,327,441		$	389,258,457
Appropriation of 2020 earnings
Cash dividends distributed by Chunghwa		—		—			—		—		(33,403,565	)		—			—			—			(33,403,565	)		—			(33,403,565	)
Cash dividends distributed by subsidiaries		—		—			—		—		—			—			—			—			—			(896,335	)		(896,335	)
Unclaimed dividend		—		1,969			—		—		—			—			—			—			1,969			—			1,969
Change in additional paid-in capital from investments in associates and joint ventures accounted for using equity method		—		200			—		—		—			—			—			—			200			—			200
Net income for the nine months ended September 30, 2021		—		—			—		—		27,119,256			—			—			—			27,119,256			1,004,612			28,123,868
Other comprehensive income (loss) for the nine months ended September 30, 2021		—		—			—		—		758			(65,786	)		(1,244,304	)		(11,082	)		(1,320,414	)		(5,274	)		(1,325,688	)
Total comprehensive income (loss) for the nine months ended September 30, 2021		—		—			—		—		27,120,014			(65,786	)		(1,244,304	)		(11,082	)		25,798,842			999,338			26,798,180
Disposal of investments in equity instruments at fair value through other comprehensive income		—		—			—		—		89,366			—			(89,366	)		—			—			—			—
Share-based payment transactions of subsidiaries		—		15,568			—		—		—			—			—			—			15,568			51,429			66,997
BALANCE, SEPTEMBER 30, 2021	$	77,574,465	$	171,279,116		$	77,574,465	$	2,675,419	$	41,723,981		$	(380,317	)	$	(93,769	)	$	(9,330	)	$	370,344,030		$	11,481,873		$	381,825,903
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
Appropriation of 2021 earnings
Special reserve		—		—			—		408,150		(408,150	)		—			—			—			—			—			—
Cash dividends distributed by Chunghwa		—		—			—		—		(35,746,314	)		—			—			—			(35,746,314	)		—			(35,746,314	)
Cash dividends distributed by subsidiaries		—		—			—		—		—			—			—			—			—			(1,053,240	)		(1,053,240	)
Unclaimed dividend		—		1,632			—		—		—			—			—			—			1,632			—			1,632
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 nine months ended September 30, 2022		—		—			—		—		28,075,670			—			—			—			28,075,670			1,126,929			29,202,599
Other comprehensive income (loss) for the nine months ended September 30, 2022		—		—			—		—		1,524			314,773			(109,315	)		21,038			228,020			13,295			241,315
Total comprehensive income (loss) for the nine months ended September 30, 2022		—		—			—		—		28,077,194			314,773			(109,315	)		21,038			28,303,690			1,140,224			29,443,914
Share-based payment transactions of subsidiaries		—		15,705			—		—		—			—			—			—			15,705			59,370			75,075
Net increase in noncontrolling interests		—		—			—		—		—			—			—			—			—			91,500			91,500
BALANCE, SEPTEMBER 30, 2022	$	77,574,465	$	171,295,803		$	77,574,465	$	3,083,569	$	42,561,752		$	(77,503	)	$	(116,903	)	$	12,752		$	371,908,400		$	12,165,407		$	384,073,807

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

- 6 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

(Reviewed, Not Audited)

	Nine Months Ended September 30
	2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$	36,383,546		$	34,886,808
Adjustments for:
Depreciation		24,583,053			23,748,237
Amortization		4,961,978			4,924,105
Amortization of incremental costs of obtaining contracts		628,476			602,028
Expected credit loss		95,102			187,601
Interest expense		190,264			161,831
Interest income		(146,294	)		(74,071	)
Dividend income		(157,465	)		(138,990	)
Compensation cost of share-based payment transactions		12,356			14,329
Share of profits of associates and joint ventures accounted for using equity method		(400,910	)		(174,314	)
Loss on disposal of property, plant and equipment		6,013			2,114
Gain on disposal of financial instruments		(726	)		(320	)
Gain on disposal of investments accounted for using equity method		—			(3,239	)
Provision for impairment loss and obsolescence of inventory		71,839			82,500
Valuation loss (gain) on financial assets and liabilities at fair value through profit or loss, net		140,571			(527,382	)
Others		182,482			(127,339	)
Changes in operating assets and liabilities:
Decrease (increase) in:
Contract assets		(507,552	)		111,339
Trade notes and accounts receivable		1,601,732			1,127,146
Receivables from related parties		(65,588	)		164,335
Inventories		(1,081,409	)		(754,016	)
Prepayments		(2,904,019	)		(2,449,811	)
Other current monetary assets		(464,165	)		(408,375	)
Other current assets		(1,029,107	)		(744,509	)
Incremental cost of obtaining contracts		(607,832	)		(574,100	)
Increase (decrease) in:
Contract liabilities		1,661,816			(1,364	)
Trade notes and accounts payable		(4,899,643	)		(1,896,214	)
Payables to related parties		84,928			(160,612	)
Other payables		(2,056,783	)		(1,177,291	)
Provisions		(43,555	)		(23,451	)
Other current liabilities		38,366			(90,980	)
Net defined benefit plans		(529,908	)		(537,110	)
Cash generated from operations		55,747,566			56,148,885

(Continued)

- 7 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

(Reviewed, Not Audited)

	Nine Months Ended September 30
	2022			2021
Interests paid	$	(208,888	)	$	(171,360	)
Income taxes paid		(8,338,284	)		(7,998,888	)
Net cash provided by operating activities		47,200,394			47,978,637
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through other comprehensive income		(3,302	)		(103,492	)
Proceeds from disposal of financial assets at fair value through other comprehensive income		—			2,905,889
Proceeds from capital reduction of financial assets at fair value through other comprehensive income		7,184			—
Acquisition of financial assets at fair value through profit or loss		(325,741	)		(43,651	)
Proceeds from disposal of financial assets at fair value through profit or loss		14,573			24,812
Proceeds from capital reduction of financial assets at fair value through profit or loss		65,967			—
Acquisition of time deposits and negotiable certificates of deposit with maturities of more than three months		(5,135,933	)		(16,220,655	)
Proceeds from disposal of time deposits and negotiable certificates of deposit with maturities of more than three months		6,465,605			17,252,379
Acquisition of investments accounted for using equity method		(20,000	)		(329,520	)
Proceeds from disposal of investments accounted for using equity method		—			8,519
Proceeds from capital reduction of investments accounted for using equity method		340,182			—
Acquisition of property, plant and equipment		(20,219,151	)		(23,031,397	)
Proceeds from disposal of property, plant and equipment		5,469			19,846
Acquisition of intangible assets		(1,810,156	)		(128,143	)
Acquisition of investment properties		(18,333	)		(146	)
Decrease in other noncurrent assets		205,229			345,768
Interests received		144,193			74,980
Dividends received		271,067			335,390
Net cash used in investing activities		(20,013,147	)		(18,889,421	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term loans		935,000			179,000
Repayments of short-term loans		(408,000	)		(180,000	)
Proceeds from short-term bills payable		—			5,000,000
Repayments of short-term bills payable		—			(12,000,000	)
Proceeds from issuance of bonds		3,500,000			7,000,000

(Continued)

- 8 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands of New Taiwan Dollars)

(Reviewed, Not Audited)

	Nine Months Ended September 30
	2022			2021
Payments for transaction costs attributable to the issuance of bonds	$	(4,463	)	$	(7,675	)
Decrease in customers’ deposits		(297,176	)		(31,108	)
Payments for the principal of lease liabilities		(2,992,960	)		(2,834,017	)
Increase in other noncurrent liabilities		1,752,270			1,191,029
Cash dividends paid		(35,746,314	)		(33,403,565	)
Cash dividends distributed to noncontrolling interests		(1,047,586	)		(893,247	)
Change in other noncontrolling interests		154,219			52,668
Unclaimed dividend		1,632			1,969
Net cash used in financing activities		(34,153,378	)		(35,924,946	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		85,601			(6,579	)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(6,880,530	)		(6,842,309	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		39,778,624			30,419,655
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	32,898,094		$	23,577,346

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

- 9 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NINE MONTHS ENDED SEPTEMBER 30, 2022 AND 2021

(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 November 4, 2022.

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, 2021. Please refer to the consolidated financial statements for the year ended December 31, 2021 for the details.

- 10 -

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	September 30, 2022		December 31, 2021		September 30, 2021		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	b.
	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	c.
	CHYP Multimedia Marketing & Communications Co., Ltd. (“CHYP”)	Digital information supply services and advertisement services		100		100		100
	Prime Asia Investments Group Ltd. (B.V.I.) (“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		51		51		51
								(Continued)

- 11 -

			Percentage of Ownership Interests
Name of Investor	Name of Investee	Main Businesses and Products	September 30, 2022		December 31, 2021		September 30, 2021		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		73		77		77	d.
	International Integrated Systems, Inc. (“IISI”)	IT solution provider, IT application consultation, system integration and package solution		51		51		51	e.
Senao International Co., Ltd.	Senao International (Samoa) Holding Ltd. (“SIS”)	International investment		100		100		100	f.
	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
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	i.
	CHPT Japan Co., Ltd. (“CHPT (JP)”)	Related services of electronic parts, machinery processed products and printed circuit board		100		100		100
								(Continued)

- 12 -

			Percentage of Ownership Interests
Name of Investor	Name of Investee	Main Businesses and Products	September 30, 2022		December 31, 2021		September 30, 2021		Note
	Chunghwa Precision Test Tech. International, Ltd. (“CHPT (International)”)	Wholesale and retail of electronic materials, and investment		100		100		100	j.
	TestPro Investment Co., Ltd. (“TestPro”)	Investment		100		—		—	k.
TestPro Investment Co., Ltd.	NavCore Tech. Co., Ltd (“NavCore”)	Sale and manufacturing of smart equipment, smart factory software and hardware integration and technical consulting service		54		—		—	l.
Senao International (Samoa) Holding Ltd.	Senao International HK Limited (“SIHK”)	International investment		100		100		100	m.
Senao International HK Limited	Senao International Trading (Shanghai) Co., Ltd. (“SITS”)	Sale of information and communication technologies products		—		—		—	n.
Prime Asia Investments Group Ltd. (B.V.I.)	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		100		100	o.
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	p.
International Integrated Systems, Inc.	Infoexplorer International Co., Ltd.(“IESA”)	Investment		100		100		100	q.
	IISI Investment Co., Ltd. (“IICL”)	Investment		—		100		100	r.
	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	q.
IISI Investment Co., Ltd.	Leading Tech Co., Ltd. (“LTCL”)	Investment		—		100		100	r.
Leading Tech Co., Ltd.	Leading Systems Co., Ltd. (“LSCL”)	Investment		—		100		100	r.
Leading Systems Co., Ltd.	International Integrated Systems Inc. (Shanghai) (“IISS”)	Development and maintenance of information system		—		—		—	s.

(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. DHT reduced and returned its capital to its stakeholders in March 2021. The Company’s ownership interest in DHT remained the same.

- 13 -

c. CHIEF issued new shares in March 2021, December 2021 and March 2022 as its employees exercised options. Therefore, the Company’s ownership interest in CHIEF decreased to 58.90%, 58.89% and 58.72% as of September 30, 2021, December 31, 2021 and September 30, 2022, respectively.

d. CHTSC issued new shares in February 2021, February 2022 and May 2022 as its employees exercised options. Therefore, the Company’s ownership interest in CHTSC decreased to 77.46% , 77.46% and 73.09% as of September 30, 2021, December 31, 2021 and September 30, 2022, respectively.

e. IISI issued new shares in January 2021 as its employees exercised options. Therefore, the Company’s ownership interest in IISI decreased to 51.02%.

f. SIS reduced and returned its capital to its stakeholders in November 2020 and July 2021. SIS reduced 8.14% and 48.15% of its capital to offset accumulated deficits in February and October 2021, respectively. The Company’s ownership interest in SIS remained the same.

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 increased its investment in CHPT (US) proportionally in August 2021 and the Company’s ownership interest in CHPT (US) remained the same.

j. CHPT increased its investment in CHPT (International) proportionally in April 2021 and the Company’s ownership interest in CHPT (International) remained the same.

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

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

m. SIHK reduced and returned its capital to its stakeholders in November 2020 and May 2021. SIHK reduced 8.15% and 47.79% of its capital to offset accumulated deficits in January and August 2021, respectively. The Company’s ownership interest in SIHK remained the same. SIHK was approved to end and dissolve its business in August 2022. The liquidation of SIHK is still in process.

n. SITS completed its liquidation in April 2021.

o. CTC was approved to end and dissolve its business in August 2020. The liquidation of CTC is still in process.

p. CHPT (International) increased its investment in SZPT proportionally in July 2021. The Company’s ownership interest in SZPT remained the same.

q. 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.

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

- 14 -

s. IISS completed its liquidation in August 2021.

The following diagram presented information regarding the relationship and percentages of ownership interests between Chunghwa and its subsidiaries as of September 30, 2022.

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.

- 15 -

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, 2021.

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. Amendments to IFRSs endorsed by the FSC for application starting from January 1, 2023

New, Revised or Amended Standards and Interpretations		Effective Date Announced by IASB
Amendments to IAS 1	Disclosure of Accounting Policies	January 1, 2023 (Note 1)
Amendments to IAS 8	Definition of Accounting Estimates	January 1, 2023 (Note 2)
Amendments to IAS 12	Deferred Tax related to Assets and Liabilities arising from a Single Transaction	January 1, 2023 (Note 3)

Note 1: The amendments will be applied for annual reporting periods beginning on or after January 1, 2023.

Note 2: The amendments are applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.

Note 3: Except that deferred taxes will be recognized for temporary differences associated with leases and decommissioning obligations on January 1, 2022, the amendments will be applied prospectively to transactions that occur on or after January 1, 2022.

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.

c. 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 Noncurrent	January 1, 2023

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

- 16 -

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

	September 30, 2022		December 31, 2021		September 30, 2021
Cash
Cash on hand	$	291,903	$	439,989	$	329,294
Bank deposits		8,839,140		15,646,840		14,502,551
		9,131,043		16,086,829		14,831,845
Cash equivalents (with maturities of less than three months)
Commercial papers		9,741,550		13,530,111		5,875,826
Negotiable certificates of deposit		10,600,000		7,500,000		500,000
Time deposits		3,425,501		2,656,545		2,369,675
Stimulus vouchers		—		5,139		—
		23,767,051		23,691,795		8,745,501
	$	32,898,094	$	39,778,624	$	23,577,346

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

	September 30, 2022	December 31, 2021	September 30, 2021
Bank deposits	0.00%~1.87%	0.00%~0.45%	0.00%~0.45%
Commercial papers	0.45%~0.85%	0.17%~0.30%	0.20%~0.23%
Negotiable certificates of deposit	0.78%~1.10%	0.27%~0.30%	0.26%
Time deposits	0.01%~2.78%	0.01%~3.60%	0.01%~3.60%

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

	September 30, 2022		December 31, 2021		September 30, 2021
Financial assets-current
Mandatorily measured at FVTPL
Derivatives (not designated for hedge)
Forward exchange contracts	$	3,771	$	—	$	—
Non-derivatives
Listed stocks - domestic		432		2,566		2,401
	$	4,203	$	2,566	$	2,401

(Continued)

- 17 -

	September 30, 2022		December 31, 2021		September 30, 2021
Financial assets-noncurrent
Mandatorily measured at FVTPL
Non-derivatives
Non-listed stocks - domestic	$	819,937	$	647,998	$	731,032
Non-listed stocks - foreign		100,758		236,672		475,064
Limited partnership - domestic		115,386		24,105		25,000
Film and drama investing agreement		14,633		—		—
	$	1,050,714	$	908,775	$	1,231,096
Financial liabilities-current
Held for trading
Derivatives (not designated for hedge)
Forward exchange contracts	$	—	$	6,180	$	—

(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 September 30, 2022, Chunghwa invested $100,000 thousand.

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

	Currency		Maturity Period	Contract Amount (In Thousands)
September 30, 2022
Forward exchange contracts - buy	NT$	/EUR	2022.12	NT$	121,304/EUR4,000
December 31, 2021
Forward exchange contracts - buy	NT$	/EUR	2022.03	NT$	257,081/EUR8,000

There were no outstanding forward exchange contracts not designated for hedge as of September 30, 2021.

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.

- 18 -

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

	September 30, 2022		December 31, 2021		September 30, 2021
Domestic investments
Listed stocks	$	261,138	$	458,582	$	160,467
Non-listed stocks		3,084,570		3,029,957		3,069,345
Foreign investments
Non-listed stocks		138,310		127,349		105,158
	$	3,484,018	$	3,615,888	$	3,334,970

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

The Company disposed of its investment in China Airlines, Ltd. starting from December 2020 and sold all its shares by February 2021. The total fair value of the disposed investment was $2,635,568 thousand in 2021. The investments in Imedtac Co., Ltd. (“IME”) and AgriTalk Technology Inc. (“ATT”) held by CHI were reclassified from financial asset at FVOCI to investments in associates in August 2021 and July 2021 at fair value. (Please refer to Note 14(a)).

The related unrealized gain on financial assets at FVOCI of $89,366 thousand was transferred from other equity to retained earnings upon the aforementioned disposals for the nine months ended September 30, 2021.

9. TRADE NOTES AND ACCOUNTS RECEIVABLE, NET

	September 30, 2022			December 31, 2021			September 30, 2021
Trade notes and accounts receivable	$	23,668,841		$	25,551,942		$	23,336,496
Less: Loss allowance		(1,389,912	)		(1,604,835	)		(1,954,885	)
	$	22,278,929		$	23,947,107		$	21,381,611

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.

- 19 -

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 amounts 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 providing for 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.

When there is evidence indicating that the counterparty is in evasion, bankruptcy, deregistration of its company 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:

September 30, 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	%		2%~63	%		10%~80	%		25%~90	%		46%~96	%		100	%
Gross carrying amount	$	16,010,531		$	285,371		$	104,692		$	74,147		$	78,948		$	46,462		$	604,651		$	17,204,802
Loss allowance (lifetime ECL)		(48,001	)		(20,261	)		(19,140	)		(20,556	)		(36,153	)		(18,597	)		(604,651	)		(767,359	)
Amortized cost	$	15,962,530		$	265,110		$	85,552		$	53,591		$	42,795		$	27,865		$	—		$	16,437,443
Project business
Expected credit loss rate (Note b)		0%~5	%		5	%		10	%		30	%		50	%		80	%		100	%
Gross carrying amount	$	2,737,775		$	74,635		$	20,094		$	18,694		$	9,281		$	522		$	567,978		$	3,428,979
Loss allowance (lifetime ECL)		(2,815	)		(7,134	)		(2,952	)		(5,608	)		(4,640	)		(470	)		(567,978	)		(591,597	)
Amortized cost	$	2,734,960		$	67,501		$	17,142		$	13,086		$	4,641		$	52		$	—		$	2,837,382

December 31, 2021

	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%~22	%		3%~62	%		11%~80	%		25%~90	%		49%~97	%		100	%
Gross carrying amount	$	16,410,725		$	282,040		$	82,062		$	44,539		$	31,065		$	31,000		$	602,833		$	17,484,264
Loss allowance (lifetime ECL)		(50,733	)		(23,465	)		(28,596	)		(29,800	)		(25,402	)		(28,423	)		(602,833	)		(789,252	)
Amortized cost	$	16,359,992		$	258,575		$	53,466		$	14,739		$	5,663		$	2,577		$	—		$	16,695,012
Project business
Expected credit loss rate (Note b)		0%~5	%		5	%		10	%		30	%		50	%		80	%		100	%
Gross carrying amount	$	3,988,010		$	136		$	6,960		$	14,271		$	411		$	799		$	769,762		$	4,780,349
Loss allowance (lifetime ECL)		(7,835	)		(68	)		(890	)		(4,293	)		(210	)		(639	)		(769,762	)		(783,697	)
Amortized cost	$	3,980,175		$	68		$	6,070		$	9,978		$	201		$	160		$	—		$	3,996,652

- 20 -

September 30, 2021

	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%~24%			2%~72%			10%~86%			24%~93%			55%~98%			100%
Gross carrying amount	$	15,741,157		$	306,115		$	108,547		$	60,527		$	59,320		$	37,844		$	639,480		$	16,952,990
Loss allowance (lifetime ECL)		(48,801	)		(28,140	)		(49,774	)		(51,824	)		(41,636	)		(26,969	)		(639,480	)		(886,624	)
Amortized cost	$	15,692,356		$	277,975		$	58,773		$	8,703		$	17,684		$	10,875		$	—		$	16,066,366
Project business
Expected credit loss rate (Note b)		0%~5%			5%			10%			30%			50%			80%			100%
Gross carrying amount	$	2,199,835		$	1,107		$	17,790		$	2,512		$	6,271		$	—		$	1,025,585		$	3,253,100
Loss allowance (lifetime ECL)		(5,712	)		(553	)		(1,779	)		(754	)		(3,440	)		—			(1,025,585	)		(1,037,823	)
Amortized cost	$	2,194,123		$	554		$	16,011		$	1,758		$	2,831		$	—		$	—		$	2,215,277

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:

	Nine Months Ended September 30
	2022			2021
Beginning balance	$	1,604,835		$	2,154,364
Add: Provision for credit loss		90,906			183,756
Less: Amounts written off		(305,829	)		(383,235	)
Ending balance	$	1,389,912		$	1,954,885

10. INVENTORIES

	September 30, 2022		December 31, 2021		September 30, 2021
Merchandise	$	3,727,517	$	4,070,189	$	3,788,100
Project in process		6,090,719		4,805,196		6,804,257
Work in process		135,600		144,847		162,208
Raw materials		287,845		224,338		242,228
		10,241,681		9,244,570		10,996,793
Land held under development		1,998,733		1,998,733		1,998,733
Construction in progress		96,565		84,106		84,893
	$	12,336,979	$	11,327,409	$	13,080,419

- 21 -

The operating costs related to inventories were $10,156,154 thousand (including the valuation loss on inventories of $9,049 thousand) and $32,880,791 thousand (including the valuation loss on inventories of $71,839 thousand) for the three months and nine months ended September 30, 2022, respectively. The operating costs related to inventories were $10,896,043 thousand (including the valuation loss on inventories of $50,017 thousand) and $32,810,873 thousand (including the valuation loss on inventories of $82,500 thousand) for the three months and nine months ended September 30, 2021, respectively.

As of September 30, 2022, December 31, 2021 and September 30, 2021, inventories of $2,095,298 thousand, $2,082,839 thousand and $2,083,626 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.

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.

11. PREPAYMENTS

	September 30, 2022		December 31, 2021		September 30, 2021
Prepaid salary and bonus	$	2,426,223	$	4,201	$	2,423,139
Prepaid rents		2,411,901		2,349,236		2,465,228
Others		2,194,455		1,775,123		2,081,211
	$	7,032,579	$	4,128,560	$	6,969,578
Current
Prepaid salary and bonus	$	2,426,223	$	4,201	$	2,423,139
Prepaid rents		599,028		565,950		587,426
Others		2,084,954		1,759,946		2,067,388
	$	5,110,205	$	2,330,097	$	5,077,953
Noncurrent
Prepaid rents	$	1,812,873	$	1,783,286	$	1,877,802
Others		109,501		15,177		13,823
	$	1,922,374	$	1,798,463	$	1,891,625

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

	September 30, 2022		December 31, 2021		September 30, 2021
Time deposits and negotiable certificates of deposit with maturities of more than three months	$	2,245,586	$	3,498,534	$	3,547,964
Accrued custodial receipts		748,981		765,339		836,800
Others		1,367,024		797,005		856,497
	$	4,361,591	$	5,060,878	$	5,241,261

- 22 -

The annual yield rates of time deposits and negotiable certificates of deposit with maturities of more than three months at the balance sheet dates were as follows:

	September 30, 2022		December 31, 2021		September 30, 2021
Time deposits and negotiable certificates of deposit with maturities of more than three months		0.03%~2.70%		0.03%~2.70%		0.03%~2.25%

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		September 30, 2022			December 31, 2021			September 30, 2021
SENAO		Taiwan		72	%		72	%		72	%
CHPT		Taiwan		66	%		66	%		66	%

	Profit Allocated to Noncontrolling Interests
	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021
SENAO	$	143,738	$	113,115	$	352,638	$	301,086
CHPT	$	144,630	$	149,567	$	381,833	$	402,132

	Accumulated Noncontrolling Interests
	September 30, 2022		December 31, 2021		September 30, 2021
SENAO	$	4,457,094	$	4,465,587	$	4,341,785
CHPT		5,152,004		4,960,977		4,775,952
Individually immaterial subsidiaries with noncontrolling interests		2,556,309		2,501,040		2,364,136
	$	12,165,407	$	11,927,604	$	11,481,873

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.

	September 30, 2022			December 31, 2021			September 30, 2021
Current assets	$	7,086,071		$	7,962,726		$	7,992,966
Noncurrent assets		3,220,149			3,129,886			3,130,441
Current liabilities		(3,696,497	)		(4,531,148	)		(4,722,336	)
Noncurrent liabilities		(477,948	)		(418,431	)		(430,553	)
Equity	$	6,131,775		$	6,143,033		$	5,970,518

(Continued)

- 23 -

	September 30, 2022		December 31, 2021		September 30, 2021
Equity attributable to the parent	$	1,674,681	$	1,677,446	$	1,628,733
Equity attributable to noncontrolling interests		4,457,094		4,465,587		4,341,785
	$	6,131,775	$	6,143,033	$	5,970,518

(Concluded)

	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021
Revenues and income	$	7,754,702	$	7,436,225	$	22,985,551	$	21,716,287
Costs and expenses		7,554,460		7,278,649		22,494,250		21,296,824
Profit for the period	$	200,242	$	157,576	$	491,301	$	419,463
Profit attributable to the parent	$	56,504	$	44,461	$	138,663	$	118,377
Profit attributable to noncontrolling interests		143,738		113,115		352,638		301,086
Profit for the period	$	200,242	$	157,576	$	491,301	$	419,463
Other comprehensive income attributable to the parent	$	2,246	$	141	$	4,120	$	3,444
Other comprehensive income attributable to noncontrolling interests		4,938		1,082		9,826		7,870
Other comprehensive income for the period	$	7,184	$	1,223	$	13,946	$	11,314
Total comprehensive income attributable to the parent	$	58,750	$	44,602	$	142,783	$	121,821
Total comprehensive income attributable to noncontrolling interests		148,676		114,197		362,464		308,956
Total comprehensive income for the period	$	207,426	$	158,799	$	505,247	$	430,777

- 24 -

	Nine Months Ended September 30
	2022			2021
Net cash flow from operating activities	$	(441,020	)	$	683,518
Net cash flow from investing activities		7,911			242,127
Net cash flow from financing activities		(749,010	)		(614,130	)
Effect of exchange rate changes on cash and cash equivalents		1,183			(118	)
Net cash inflow (outflow)	$	(1,180,936	)	$	311,397
Dividends paid to noncontrolling interests	$	370,957		$	278,218

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.

	September 30, 2022			December 31, 2021			September 30, 2021
Current assets	$	4,209,343		$	4,656,928		$	4,091,697
Noncurrent assets		4,620,588			4,063,611			4,070,226
Current liabilities		(1,006,602	)		(1,143,341	)		(887,893	)
Noncurrent liabilities		(30,224	)		(31,986	)		(10,224	)
Equity	$	7,793,105		$	7,545,212		$	7,263,806
Equity attributable to CHI	$	2,641,101		$	2,584,235		$	2,487,854
Equity attributable to noncontrolling interests		5,152,004			4,960,977			4,775,952
	$	7,793,105		$	7,545,212		$	7,263,806

	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021
Revenues and income	$	1,252,384	$	1,111,067	$	3,295,035	$	2,976,795
Costs and expenses		1,029,234		883,596		2,710,230		2,365,195
Profit for the period	$	223,150	$	227,471	$	584,805	$	611,600
Profit attributable to CHI	$	78,520	$	77,904	$	202,972	$	209,468
Profit attributable to noncontrolling interests		144,630		149,567		381,833		402,132
Profit for the period	$	223,150	$	227,471	$	584,805	$	611,600

(Continued)

- 25 -

	Three Months Ended September 30					Nine Months Ended September 30
	2022		2021			2022		2021
Other comprehensive income (loss) attributable to CHI	$	3,471	$	(335	)	$	6,619	$	(1,411	)
Other comprehensive income (loss) attributable to noncontrolling interests		4,857		(642	)		10,898		(2,709	)
Other comprehensive income (loss) for the period	$	8,328	$	(977	)	$	17,517	$	(4,120	)
Total comprehensive income attributable to CHI	$	81,991	$	77,569		$	209,591	$	208,057
Total comprehensive income attributable to noncontrolling interests		149,487		148,925			392,731		399,423
Total comprehensive income for the period	$	231,478	$	226,494		$	602,322	$	607,480

(Concluded)

	Nine Months Ended September 30
	2022			2021
Net cash flow from operating activities	$	776,504		$	541,953
Net cash flow from investing activities		(894,036	)		(448,439	)
Net cash flow from financing activities		(379,523	)		(408,831	)
Effect of exchange rate changes on cash and cash equivalents		16,184			(2,559	)
Net cash outflow	$	(480,871	)	$	(317,876	)
Dividends paid to noncontrolling interests	$	293,204		$	258,710

b. Equity transactions with noncontrolling interests

CHIEF issued new shares in March 2021, December 2021 and March 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 2021, February 2022 and May 2022 as its employees exercised options. Therefore, the Company’s ownership interest in CHTSC decreased. See Note 33(b) for details.

IISI issued new shares in January 2021 as its employees exercised options. Therefore, the Company’s ownership interest in IISI decreased. See Note 33(c) for details.

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

- 26 -

Information of the Company’s equity transactions with noncontrolling interests for the nine months ended September 30, 2022 and 2021 was as follows:

	Nine Months Ended September 30, 2022
	CHIEF Share-Based Payment			CHTSC Share-Based Payment
Cash consideration received from noncontrolling interests	$	27,317		$	35,402
The proportionate share of the carrying amount of the net assets of the subsidiary transferred to noncontrolling interests		(16,977	)		(30,037	)
Differences arising from equity transactions	$	10,340		$	5,365
Line items for equity transaction adjustments
Additional paid-in capital - arising from changes in equities of subsidiaries	$	10,340		$	5,365

	Nine Months Ended September 30, 2021
	CHIEF Share-Based Payment			CHTSC Share-Based Payment			IISI Share-Based Payment
Cash consideration received from noncontrolling interests	$	28,364		$	20,650		$	3,654
The proportionate share of the carrying amount of the net assets of the subsidiary transferred to noncontrolling interests		(17,242	)		(19,066	)		(792	)
Differences arising from equity transactions	$	11,122		$	1,584		$	2,862
Line items for equity transaction adjustments
Additional paid-in capital - arising from changes in equities of subsidiaries	$	11,122		$	1,584		$	2,862

14. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

	September 30, 2022		December 31, 2021		September 30, 2021
Investments in associates	$	7,190,371	$	7,322,842	$	7,226,883
Investment in joint venture		9,805		9,932		10,046
	$	7,200,176	$	7,332,774	$	7,236,929

- 27 -

a. Investments in associates

Investments in associates were as follows:

	Carrying Amount
	September 30, 2022		December 31, 2021		September 30, 2021
Material associate
Next Commercial Bank Co., Ltd. (“NCB”)	$	3,308,099	$	3,592,054	$	3,538,205
Associates that are not individually material
Listed
Senao Networks, Inc. (“SNI”)		1,287,069		1,077,604		1,023,428
KingwayTek Technology Co., Ltd. (“KWT”)		267,235		258,943		258,304
Non-listed
Viettel-CHT Co., Ltd. (“Viettel-CHT”)		510,379		447,097		421,393
ST-2 Satellite Ventures Pte., Ltd. (“STS”)		337,008		518,165		592,728
Chunghwa PChome Fund I Co., Ltd. (“CPFI”)		296,821		222,491		217,413
Taiwan International Standard Electronics Co., Ltd. (“TISE”)		271,400		347,269		299,649
WiAdvance Technology Corporation (“WATC”)		237,984		253,873		261,577
So-net Entertainment Taiwan Limited (“So-net”)		231,136		217,021		218,251
KKBOX Taiwan Co., Ltd. (“KKBOXTW”)		170,055		157,524		158,212
Taiwan International Ports Logistics Corporation (“TIPL”)		92,303		70,121		65,215
CHT Infinity Singapore Pte. Ltd. (“CISG”)		62,678		54,952		55,552
Click Force Co., Ltd. (“CF”)		40,147		36,938		35,743
Imedtac Co., Ltd. (“IME”)		39,302		44,565		41,001
AgriTalk Technology Inc. (“ATT”)		16,824		17,637		33,612
Baohwa Trust Co., Ltd. (“BHT”)		15,362		—		—
Cornerstone Ventures Co., Ltd. (“CVC”)		6,569		6,588		6,600
Alliance Digital Tech Co., Ltd. (“ADT”)		—		—		—
		3,882,272		3,730,788		3,688,678
	$	7,190,371	$	7,322,842	$	7,226,883

- 28 -

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
	September 30, 2022		December 31, 2021		September 30, 2021
Material associate
Next Commercial Bank Co., Ltd. (“NCB”)		42		42		42
Associates that are not individually material
Senao Networks, Inc. (“SNI”)		34		34		34
KingwayTek Technology Co., Ltd. (“KWT”)		23		23		23
Viettel-CHT Co., Ltd. (“Viettel-CHT”)		30		30		30
ST-2 Satellite Ventures Pte., Ltd. (“STS”)		38		38		38
Chunghwa PChome Fund I Co., Ltd. (“CPFI”)		50		50		50
Taiwan International Standard Electronics Co., Ltd. (“TISE”)		40		40		40
WiAdvance Technology Corporation (“WATC”)		20		20		20
So-net Entertainment Taiwan Limited (“So-net”)		30		30		30
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		8
AgriTalk Technology Inc. (“ATT”)		17		17		17
Baohwa Trust Co., Ltd. (“BHT”)		40		—		—
Cornerstone Ventures Co., Ltd. (“CVC”)		49		49		49
Alliance Digital Tech Co., Ltd. (“ADT”)		—		—		—

Summarized financial information of NCB was set out below:

	September 30, 2022			December 31, 2021			September 30, 2021
Assets	$	26,754,912		$	9,197,280		$	9,066,931
Liabilities		(18,771,203	)		(524,813	)		(519,296	)
Equity	$	7,983,709		$	8,672,467		$	8,547,635

(Continued)

- 29 -

	September 30, 2022			December 31, 2021			September 30, 2021
The percentage of ownership interest held by the Company		41.90	%		41.90	%		41.90	%
Equity attributable to the Company	$	3,345,174		$	3,633,764		$	3,581,459
Unrealized gain or loss from downstream transactions		(37,075	)		(41,710	)		(43,254	)
The carrying amount of investment	$	3,308,099		$	3,592,054		$	3,538,205

(Concluded)

	Three Months Ended September 30						Nine Months Ended September 30
	2022			2021			2022			2021
Net revenues (losses)	$	(33,088	)	$	2,789		$	(17,063	)	$	11,990
Net loss for the period	$	(274,986	)	$	(181,663	)	$	(666,385	)	$	(570,497	)
Other comprehensive loss		(12,737	)		—			(22,373	)		—
Total comprehensive loss for the period	$	(287,723	)	$	(181,663	)	$	(688,758	)	$	(570,497	)

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 September 30					Nine Months Ended September 30
	2022		2021			2022		2021
The Company’s share of profits	$	198,867	$	144,600		$	675,618	$	413,139
The Company’s share of other comprehensive income (loss)		10,667		(2	)		17,815		(387	)
The Company’s share of total comprehensive income	$	209,534	$	144,598		$	693,433	$	412,752

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

	September 30, 2022		December 31, 2021		September 30, 2021
SNI	$	2,818,436	$	1,699,351	$	1,497,087
KWT	$	769,305	$	909,787	$	1,027,333

STS reduced its capital in April 2022 and the Company received $340,182 thousand from capital reduction. 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.

- 30 -

The Company invested $55,720 thousand and obtained 40.00% ownership interest in CISG in June 2021. CISG mainly engages in investment business.

The Company invested $273,800 thousand and obtained 20.33% ownership interest by participating in the capital increase of WATC in March 2021. WATC mainly engages in software solution integration. WATC issued new shares in March 2022 as its employees exercised option. Therefore, the Company’s ownership interest in WATC decreased to 20.08% as of September 30, 2022.

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 7.54% ownership interest in IME. The Company originally treated it as a financial asset at FVOCI. However, as the Company obtained one out of five seats of the Board of Directors of IME in August 2021 and has significant influence over IME, the Company reclassified it as an associate. IME issued new shares in December 2021 as its employees exercised options; therefore, the Company’s ownership interest in IME decreased to 6.74% as of December 31, 2021.

The Company invested and obtained 17.19% ownership interest in ATT. The Company originally treated it as a financial asset at FVOCI. However, as the Company obtained one out of three seats of the Board of Directors of ATT in July 2021 and has significant influence over ATT, the Company reclassified it as an associate.

The Company owns 14% ownership interest in ADT. Considering the seats that the Company controls in the Board of Directors of ADT and the relative size of ownership interest and the dispersion of shares owned by the other stockholders, the Company has significant influence over ADT. ADT completed its liquidation in August 2021. The Company received the liquidation distribution of $8,519 thousand and recognized gain on disposal of $3,239 thousand under “other gains and losses” on the consolidated statements of comprehensive income.

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	September 30, 2022		December 31, 2021		September 30, 2021		September 30, 2022			December 31, 2021			September 30, 2021
Non-listed
Chunghwa SEA Holdings (“CHT SEA”)	$	9,805	$	9,932	$	10,046		51	%		51	%		51	%

- 31 -

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 September 30						Nine Months Ended September 30
	2022			2021			2022			2021
The Company’s share of loss	$	(36	)	$	(40	)	$	(128	)	$	(154	)
The Company’s share of other comprehensive income		—			—			—			—
The Company’s share of total comprehensive loss	$	(36	)	$	(40	)	$	(128	)	$	(154	)

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

	September 30, 2022		December 31, 2021		September 30, 2021
Assets used by the Company	$	278,829,751	$	281,849,188	$	277,328,730
Assets subject to operating leases		7,471,245		7,251,273		7,292,125
	$	286,300,996	$	289,100,461	$	284,620,855

a. Assets used by the Company

	Land		Land Improvements			Buildings			Computer Equipment			Telecommunications Equipment			Transportation Equipment			Miscellaneous Equipment			Construction in Progress and Equipment to be Accepted			Total
Cost
Balance on January 1, 2021	$	101,990,645	$	1,630,362		$	70,889,578		$	12,405,580		$	710,775,709		$	3,894,243		$	10,299,819		$	8,529,416		$	920,415,352
Additions		—		—			25,936			42,332			67,565			—			132,494			23,710,070			23,978,397
Disposal		—		(1,025	)		(29,418	)		(966,571	)		(14,959,264	)		(42,934	)		(291,415	)		—			(16,290,627	)
Effect of foreign exchange differences		—		—			—			145			(50,274	)		(360	)		(2,384	)		(4,196	)		(57,069	)
Others		76,225		9,922			308,126			155,535			20,869,837			21,283			293,715			(21,472,274	)		262,369
Balance on September 30, 2021	$	102,066,870	$	1,639,259		$	71,194,222		$	11,637,021		$	716,703,573		$	3,872,232		$	10,432,229		$	10,763,016		$	928,308,422
Accumulated depreciation and impairment
Balance on January 1, 2021	$	—	$	(1,399,204	)	$	(29,247,331	)	$	(10,638,967	)	$	(593,662,932	)	$	(3,718,392	)	$	(7,925,938	)	$	—		$	(646,592,764	)
Depreciation expenses		—		(32,849	)		(1,046,847	)		(540,885	)		(18,484,518	)		(47,305	)		(518,237	)		—			(20,670,641	)
Disposal		—		1,025			29,418			957,690			14,950,296			42,299			287,939			—			16,268,667
Effect of foreign exchange differences		—		—			—			(146	)		23,707			143			1,280			—			24,984
Others		—		—			3,562			(1,207	)		1,479			(197	)		(13,575	)		—			(9,938	)
Balance on September 30, 2021	$	—	$	(1,431,028	)	$	(30,261,198	)	$	(10,223,515	)	$	(597,171,968	)	$	(3,723,452	)	$	(8,168,531	)	$	—		$	(650,979,692	)
Balance on January 1, 2021, net	$	101,990,645	$	231,158		$	41,642,247		$	1,766,613		$	117,112,777		$	175,851		$	2,373,881		$	8,529,416		$	273,822,588
Balance on September 30, 2021, net	$	102,066,870	$	208,231		$	40,933,024		$	1,413,506		$	119,531,605		$	148,780		$	2,263,698		$	10,763,016		$	277,328,730

(Continued)

- 32 -

	Land			Land Improvements			Buildings			Computer Equipment			Telecommunications 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		462,475			—			118,639			53,815			103,160			1,196			122,671			17,830,963			18,692,919
Disposal		—			(6,042	)		(6,747	)		(497,952	)		(15,206,441	)		(62,490	)		(233,313	)		—			(16,012,985	)
Effect of foreign exchange differences		—			—			—			195			267,844			148			4,661			23,959			296,807
Others		(184,155	)		13,488			(66,459	)		278,206			17,479,259			682			379,671			(18,262,707	)		(362,015	)
Balance on September 30, 2022	$	102,923,034		$	1,669,074		$	71,403,469		$	11,051,312		$	716,178,044		$	3,866,873		$	11,082,563		$	10,378,364		$	928,552,733
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		—			(29,472	)		(1,075,534	)		(548,925	)		(19,241,381	)		(57,410	)		(559,693	)		—			(21,512,415	)
Disposal		—			6,042			6,747			497,685			15,198,552			62,490			229,987			—			16,001,503
Effect of foreign exchange differences		—			—			—			(191	)		(142,480	)		(46	)		(2,983	)		—			(145,700	)
Others		—			—			66,893			(3,622	)		(22,445	)		(286	)		(18,091	)		—			22,449
Balance on September 30, 2022	$	—		$	(1,465,042	)	$	(31,579,464	)	$	(9,687,099	)	$	(594,741,043	)	$	(3,694,230	)	$	(8,556,104	)	$	—		$	(649,722,982	)
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 September 30, 2022, net	$	102,923,034		$	204,032		$	39,824,005		$	1,364,213		$	121,437,001		$	172,643		$	2,526,459		$	10,378,364		$	278,829,751

(Concluded)

There was no indication that property, plant and equipment was impaired; therefore, the Company did not recognize any impairment loss for the nine months ended September 30, 2022 and 2021.

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

Land improvements	10~30 years
Buildings
Main buildings	20~60 years
Other building facilities	3~15 years
Computer equipment	1~8 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

b. Assets subject to operating leases

	Land			Buildings			Total
Cost
Balance on January 1, 2021	$	4,972,920		$	4,236,156		$	9,209,076
Others		(167,469	)		(83,961	)		(251,430	)
Balance on September 30, 2021	$	4,805,451		$	4,152,195		$	8,957,646
Accumulated depreciation and impairment
Balance on January 1, 2021	$	—		$	(1,615,721	)	$	(1,615,721	)
Depreciation expenses		—			(57,653	)		(57,653	)
Others		—			7,853			7,853
Balance on September 30, 2021	$	—		$	(1,665,521	)	$	(1,665,521	)

(Continued)

- 33 -

	Land		Buildings			Total
Balance on January 1, 2021, net	$	4,972,920	$	2,620,435		$	7,593,355
Balance on September 30, 2021, net	$	4,805,451	$	2,486,674		$	7,292,125
Cost
Balance on January 1, 2022	$	4,808,926	$	4,133,989		$	8,942,915
Others		301,857		(36,154	)		265,703
Balance on September 30, 2022	$	5,110,783	$	4,097,835		$	9,208,618
Accumulated depreciation and impairment
Balance on January 1, 2022	$	—	$	(1,691,642	)	$	(1,691,642	)
Depreciation expenses		—		(57,127	)		(57,127	)
Others		—		11,396			11,396
Balance on September 30, 2022	$	—	$	(1,737,373	)	$	(1,737,373	)
Balance on January 1, 2022, net	$	4,808,926	$	2,442,347		$	7,251,273
Balance on September 30, 2022, net	$	5,110,783	$	2,360,462		$	7,471,245

(Concluded)

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

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

	September 30, 2022		December 31, 2021		September 30, 2021
Year 1	$	374,477	$	371,380	$	375,633
Year 2		279,078		300,591		299,522
Year 3		199,293		210,073		223,063
Year 4		166,701		158,541		157,806
Year 5		142,391		135,208		134,233
Onwards		1,128,833		1,177,460		1,180,791
	$	2,290,773	$	2,353,253	$	2,371,048

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

- 34 -

16. LEASE ARRANGEMENTS

a. Right-of-use assets

	September 30, 2022		December 31, 2021		September 30, 2021
Land and buildings
Handsets base stations	$	7,108,132	$	6,987,731	$	6,948,036
Others		1,843,737		1,537,852		1,627,794
Equipment		2,282,289		2,525,353		1,916,015
	$	11,234,158	$	11,050,936	$	10,491,845

	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021
Additions to right-of-use assets					$	3,335,259	$	2,636,051
Depreciation charge for right-of-use assets
Land and buildings
Handsets base stations	$	715,367	$	700,725	$	2,137,829	$	2,083,975
Others		191,824		194,638		580,566		592,125
Equipment		92,157		103,498		262,426		312,138
	$	999,348	$	998,861	$	2,980,821	$	2,988,238

The Company did not have significant sublease or impairment of right-of-use assets for the nine months ended September 30, 2022 and 2021.

b. Lease liabilities

	September 30, 2022		December 31, 2021		September 30, 2021
Lease liabilities
Current	$	3,216,442	$	3,210,564	$	3,243,039
Noncurrent		7,345,934		7,061,689		5,948,847
	$	10,562,376	$	10,272,253	$	9,191,886

Ranges of discount rates for lease liabilities were as follows:

	September 30, 2022		December 31, 2021		September 30, 2021
Land and buildings
Handsets base stations		0.37%~1.62%		0.37%~1.18%		0.37%~1.18%
Others		0.37%~9.00%		0.37%~9.00%		0.37%~9.00%
Equipment		0.37%~2.99%		0.37%~2.99%		0.37%~2.99%

- 35 -

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 September 30				Nine Months Ended September 30
	2022		2021		2022		2021
Expenses relating to low-value asset leases	$	2,268	$	2,113	$	6,465	$	6,121
Expenses relating to variable lease payments not included in the measurement of lease liabilities	$	2,418	$	1,811	$	6,047	$	5,072
Total cash outflow for leases					$	3,059,350	$	2,897,490

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.

- 36 -

17. INVESTMENT PROPERTIES

Cost
Balance on January 1, 2021	$	10,662,450
Additions		146
Balance on September 30, 2021	$	10,662,596
Accumulated depreciation and impairment
Balance on January 1, 2021	$	(1,041,128	)
Depreciation expense		(31,705	)
Balance on September 30, 2021	$	(1,072,833	)
Balance on January 1, 2021, net	$	9,621,322
Balance on September 30, 2021, net	$	9,589,763
Cost
Balance on January 1, 2022	$	10,662,596
Additions		18,333
Reclassification		99,099
Balance on September 30, 2022	$	10,780,028
Accumulated depreciation and impairment
Balance on January 1, 2022	$	(999,958	)
Depreciation expense		(32,690	)
Reclassification		(39,922	)
Balance on September 30, 2022	$	(1,072,570	)
Balance on January 1, 2022, net	$	9,662,638
Balance on September 30, 2022, net	$	9,707,458

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, 2021 and 2020 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 September 30, 2022 and 2021 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:

	September 30, 2022		December 31, 2021		September 30, 2021
Fair value	$	25,547,766	$	25,547,766	$	22,644,318
Overall capital interest rate		0.91%~3.05%		0.91%~3.05%		0.93%~3.03%
Profit margin ratio		8%~20%		8%~20%		12%~20%
Discount rate		—		—		—
Capitalization rate		0.53%~2.11%		0.53%~2.11%		0.73%~2.20%

- 37 -

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:

	September 30, 2022		December 31, 2021		September 30, 2021
Year 1	$	119,207	$	107,183	$	95,534
Year 2		100,678		82,505		74,018
Year 3		90,632		61,629		51,870
Year 4		71,200		55,510		44,542
Year 5		47,520		38,605		29,514
Onwards		158,042		77,626		40,182
	$	587,279	$	423,058	$	335,660

18. INTANGIBLE ASSETS

	Mobile Broadband Concession			Computer Software			Goodwill			Others			Total
Cost
Balance on January 1, 2021	$	108,338,000		$	3,319,223		$	291,206		$	392,326		$	112,340,755
Additions-acquired separately		—			123,839			—			4,304			128,143
Disposal		—			(294,185	)		—			—			(294,185	)
Effect of foreign exchange differences		—			(286	)		—			(24	)		(310	)
Others		—			1,898			—			—			1,898
Balance on September 30, 2021	$	108,338,000		$	3,150,489		$	291,206		$	396,606		$	112,176,301
Accumulated amortization and impairment
Balance on January 1, 2021	$	(19,318,842	)	$	(2,532,910	)	$	(44,926	)	$	(159,517	)	$	(22,056,195	)
Amortization expenses		(4,649,183	)		(253,099	)		—			(21,823	)		(4,924,105	)
Disposal		—			294,185			—			—			294,185
Effect of foreign exchange differences		—			274			—			8			282
Others		—			(26	)		—			—			(26	)
Balance on September 30, 2021	$	(23,968,025	)	$	(2,491,576	)	$	(44,926	)	$	(181,332	)	$	(26,685,859	)
Balance on January 1, 2021, net	$	89,019,158		$	786,313		$	246,280		$	232,809		$	90,284,560
Balance on September 30, 2021, net	$	84,369,975		$	658,913		$	246,280		$	215,274		$	85,490,442
Cost
Balance on January 1, 2022	$	108,338,000		$	3,202,901		$	291,206		$	412,477		$	112,244,584
Additions-acquired separately		1,625,431			176,045			—			8,680			1,810,156
Disposal		—			(315,902	)		—			(962	)		(316,864	)
Effect of foreign exchange differences		—			206			—			5			211
Others		—			1,083			—			—			1,083
Balance on September 30, 2022	$	109,963,431		$	3,064,333		$	291,206		$	420,200		$	113,739,170

(Continued)

- 38 -

	Mobile Broadband Concession			Computer Software			Goodwill			Others			Total
Accumulated amortization and impairment
Balance on January 1, 2022	$	(25,517,753	)	$	(2,529,941	)	$	(73,624	)	$	(178,183	)	$	(28,299,501	)
Amortization expenses		(4,696,990	)		(235,743	)		—			(29,245	)		(4,961,978	)
Disposal		—			315,902			—			962			316,864
Effect of foreign exchange differences		—			(122	)		—			—			(122	)
Balance on September 30, 2022	$	(30,214,743	)	$	(2,449,904	)	$	(73,624	)	$	(206,466	)	$	(32,944,737	)
Balance on January 1, 2022, net	$	82,820,247		$	672,960		$	217,582		$	234,294		$	83,945,083
Balance on September 30, 2022, net	$	79,748,688		$	614,429		$	217,582		$	213,734		$	80,794,433

(Concluded)

Chunghwa’s Board of Directors approved the acquisition of the 900MHz frequency band and equipment from Asia Pacific Telecom Co., Ltd. in November 2021. The aforementioned tax-excluded transaction amount was $1,800,113 thousand included in intangible assets- mobile broadband concession and other assets- spare parts, respectively. The transaction was approved by the related authority in May 2022 and completed in July 2022.

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

	September 30, 2022		December 31, 2021		September 30, 2021
Spare parts	$	3,785,377	$	2,836,191	$	2,938,284
Refundable deposits		1,869,499		1,971,058		1,891,250
Other financial assets		1,000,000		1,000,000		1,000,000
Others		1,977,814		2,034,331		2,105,459
	$	8,632,690	$	7,841,580	$	7,934,993
Current
Spare parts	$	3,785,377	$	2,836,191	$	2,938,284
Others		222,510		142,589		155,322
	$	4,007,887	$	2,978,780	$	3,093,606
Noncurrent
Refundable deposits	$	1,869,499	$	1,971,058	$	1,891,250
Other financial assets		1,000,000		1,000,000		1,000,000
Others		1,755,304		1,891,742		1,950,137
	$	4,624,803	$	4,862,800	$	4,841,387

- 39 -

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.

September 30, 2022

Hedging Instruments

Notional Amount

Forward

Line Item in

Carrying Amount

Change in Fair Values of Hedging Instruments Used for Calculating Hedge

Currency

(In Thousands)

Maturity

Rate

Balance Sheet

Asset

Liability

Ineffectiveness

Cash flow hedge

Forecast purchases - forward exchange contracts

NT$

/EUR

NT$ 425,012 / EUR14,000

2022.12

$

30.36

Hedging financial assets (liabilities)

$

12,752

$

—

$

21,038

	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	$	(21,038	)	$	12,752	$	—

- 40 -

December 31, 2021

Notional Amount

Forward

Line Item in

Carrying Amount

Change in Fair Values of Hedging Instruments Used for Calculating Hedge

Hedging Instruments

Currency

(In Thousands)

Maturity

Rate

Balance Sheet

Asset

Liability

Ineffectiveness

Cash flow hedge

Forecast purchases - forward exchange contracts

NT$/EUR

NT$ 227,780 /EUR 7,000

2022.03

$

32.54

Hedging financial assets (liabilities)

$

—

$

8,286

$

(10,038

)

	Change in Value of Hedged Item Used for		Accumulated Gain or Loss on Hedging Instruments in Other Equity
Hedged Items	Calculating Hedge Ineffectiveness		Continuing Hedges			Hedge Accounting no Longer Applied
Cash flow hedge
Forecast equipment purchases	$	10,038	$	(8,286	)	$	—

September 30, 2021

Hedging Instruments

Notional Amount

Forward

Line Item in

Carrying Amount

Change in Fair Values of Hedging Instruments Used for Calculating Hedge

Currency

(In Thousands)

Maturity

Rate

Balance Sheet

Asset

Liability

Ineffectiveness

Cash flow hedge

Forecast purchases - forward exchange contracts

NT$/EUR

NT$ 524,459/ EUR 15,900

2021.12

$

32.98

Hedging financial assets (liabilities)

$

—

$

9,330

$

(11,082

)

	Change in Value of Hedged Item Used for		Accumulated Gain or Loss on Hedging Instruments in Other Equity
Hedged Items	Calculating Hedge Ineffectiveness		Continuing Hedges			Hedge Accounting no Longer Applied
Cash flow hedge
Forecast equipment purchases	$	11,082	$	(9,330	)	$	—

- 41 -

Nine months ended September 30, 2022

	Comprehensive Income
							Reclassification from Equity to Profit or Loss 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 P/L and the Adjusted Line Item	Due to Hedged Future Cash Flows No Longer Expected to Occur
Cash flow hedge
Forecast equipment purchases	$	21,038	$	—		—	$(14,253)	$—
							Construction in progress and equipment to be accepted	Other gains and losses

Nine months ended September 30, 2021

	Comprehensive Income
								Reclassification from Equity to Profit or Loss 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 P/L and the Adjusted Line Item	Due to Hedged Future Cash Flows No Longer Expected to Occur
Cash flow hedge
Forecast equipment purchases	$	(11,082	)	$	—		—	$(22,100)	$—
								Construction in progress and equipment to be accepted	Other gains and losses

21. SHORT-TERM LOANS

	September 30, 2022		December 31, 2021		September 30, 2021
Unsecured bank loans	$	592,000	$	65,000	$	66,000

The annual interest rates of bank loans were as follows:

	September 30, 2022	December 31, 2021	September 30, 2021
Unsecured bank loans	1.30%~3.06%	1.97%~2.43%	1.10%~2.43%

- 42 -

22. LONG-TERM LOANS

	September 30, 2022		December 31, 2021		September 30, 2021
Secured bank loans (Note 38)	$	1,600,000	$	1,600,000	$	1,600,000

The annual interest rates of bank loans were as follows:

	September 30, 2022			December 31, 2021			September 30, 2021
Secured bank loans		1.30	%		0.89	%		0.89	%

LED obtained a secured loan from Chang Hwa Bank in September 2010. Interest is paid monthly. $300,000 thousand and $1,350,000 thousand were originally due in December 2014 and September 2015, respectively. In October 2014, the bank borrowing mentioned above was extended to September 2018 for one-time repayment. LED made an early repayment of $50,000 thousand in April 2015. LED entered into a contract with Chang Hwa Bank to renew the contract upon the maturity of the aforementioned contract in December 2017 and the due date of the renewed contract is September 2021. Furthermore, LED entered into another contract with Chang Hwa Bank to renew the contract upon the maturity of the aforementioned contract in August 2021 and the due date of the renewed contract is September 2024.

23. BONDS PAYABLE

	September 30, 2022			December 31, 2021			September 30, 2021
Unsecured domestic bonds	$	30,500,000		$	27,000,000		$	27,000,000
Less: Discounts on bonds payable		(23,968	)		(23,325	)		(24,418	)
	$	30,476,032		$	26,976,675		$	26,975,582

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

	September 30, 2022		December 31, 2021		September 30, 2021
Trade notes and accounts payable	$	13,160,237	$	18,063,288	$	13,695,667

- 43 -

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

25. OTHER PAYABLES

	September 30, 2022		December 31, 2021		September 30, 2021
Accrued salary and compensation	$	8,112,367	$	10,125,732	$	7,640,090
Accrued compensation to employees and remuneration to directors and supervisors		1,800,357		1,997,277		1,636,867
Payables to contractors		1,772,059		3,014,677		3,741,121
Amounts collected for others		1,593,842		1,426,443		1,497,377
Accrued maintenance costs		965,129		1,010,892		1,014,711
Payables to equipment suppliers		879,479		1,153,550		1,090,917
Others		5,772,519		5,708,137		7,049,217
	$	20,895,752	$	24,436,708	$	23,670,300

26. PROVISIONS

	September 30, 2022		December 31, 2021		September 30, 2021
Warranties	$	216,743	$	213,537	$	194,476
Onerous contracts		95,199		146,541		131,260
Employee benefits		67,414		62,833		60,887
Others		3,767		3,767		4,097
	$	383,123	$	426,678	$	390,720
Current	$	225,903	$	284,813	$	257,945
Noncurrent		157,220		141,865		132,775
	$	383,123	$	426,678	$	390,720

	Warranties			Onerous Contracts			Employee Benefits			Others		Total
Balance on January 1, 2021	$	182,431		$	170,433		$	57,210		$	4,097	$	414,171
Additional / (reversal of) provisions recognized		74,921			(39,173	)		4,379			—		40,127
Used / forfeited during the period		(62,860	)		—			(702	)		—		(63,562	)
Effect of foreign exchange differences		(16	)		—			—			—		(16	)
Balance on September 30, 2021	$	194,476		$	131,260		$	60,887		$	4,097	$	390,720
Balance on January 1, 2022	$	213,537		$	146,541		$	62,833		$	3,767	$	426,678
Additional / (reversal of) provisions recognized		68,188			(51,342	)		4,851			—		21,697
Used / forfeited during the period		(65,013	)		—			(270	)		—		(65,283	)
Effect of foreign exchange differences		31			—			—			—		31
Balance on September 30, 2022	$	216,743		$	95,199		$	67,414		$	3,767	$	383,123

- 44 -

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.

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, 2021 and 2020 were as follows:

	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021
Operating costs	$	140,170	$	180,785	$	424,388	$	544,652
Marketing expenses		90,608		91,887		270,214		275,007
General and administrative expenses		21,772		20,260		64,015		59,648
Research and development expenses		9,241		11,293		27,356		33,148
	$	261,791	$	304,225	$	785,973	$	912,455

28. EQUITY

a. Share capital

1) Common stocks

	September 30, 2022		December 31, 2021		September 30, 2021
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.

- 45 -

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 September 30, 2022, the outstanding ADSs were 209,200 thousand common stocks, which equaled 20,920 thousand units and represented 2.70% 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:

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 nine months ended September 30, 2022 and 2021 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, 2021	$	147,329,386	$	186,828		$	2,087,957	$	987,611	$	21,519	$	20,648,078	$	171,261,379
Unclaimed dividend		—		—			—		—		1,969		—		1,969
Change in additional paid-in capital from investments in associates and joint ventures accounted for using equity method		—		200			—		—		—		—		200
Share-based payment transactions of subsidiaries		—		—			15,568		—		—		—		15,568
Balance on September 30, 2021	$	147,329,386	$	187,028		$	2,103,525	$	987,611	$	23,488	$	20,648,078	$	171,279,116
Balance on January 1, 2022	$	147,329,386	$	186,391		$	2,104,672	$	987,611	$	23,487	$	20,648,078	$	171,279,625
Unclaimed dividend		—		—			—		—		1,632		—		1,632
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		—		—			15,705		—		—		—		15,705
Balance on September 30, 2022	$	147,329,386	$	185,232		$	2,120,377	$	987,611	$	25,119	$	20,648,078	$	171,295,803

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.

- 46 -

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.

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 2021 and 2020 earnings of Chunghwa approved by the stockholders in their meetings on May 27, 2022 and August 20, 2021 were as follows:

	Appropriation of Earnings				Dividends Per Share (NT$)
	For Fiscal Year 2021		For Fiscal Year 2020		For Fiscal Year 2021		For Fiscal Year 2020
Special reserve	$	408,150	$	—
Cash dividends		35,746,314		33,403,565	$	4.608	$	4.306

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.

- 47 -

2) Unrealized gain or loss on financial assets at FVOCI

	Nine Months Ended September 30
	2022			2021
Beginning balance	$	(7,588	)	$	1,239,901
Unrealized gain or loss for the period
Equity instruments		(102,323	)		(1,244,304	)
Share of loss of associates and joint ventures accounted for using equity method		(6,992	)		—
Transferred accumulated gain or loss to unappropriated earnings resulting from the disposal of equity instruments (Note 8)		—			(89,366	)
Ending balance	$	(116,903	)	$	(93,769	)

e. Noncontrolling interests

	Nine Months Ended September 30
	2022			2021
Beginning balance	$	11,927,604		$	11,327,441
Shares attributed to noncontrolling interests
Net income for the period		1,126,929			1,004,612
Exchange differences arising from the translation of the foreign operations		32,372			1,929
Unrealized gain or loss on financial assets at FVOCI		(25,665	)		(6,470	)
Share of other comprehensive income (loss) of associates and joint ventures accounted for using equity method		6,588			(733	)
Cash dividends distributed by subsidiaries		(1,053,240	)		(896,335	)
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		59,370			51,429
Net increase in noncontrolling interests		91,500			—
Ending balance	$	12,165,407		$	11,481,873

29. REVENUES

	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021
Revenue from contracts with customers	$	52,723,050	$	50,660,195	$	155,594,467	$	149,763,852
Other revenues
Rental income		273,813		163,556		759,477		628,124
Government grants income		466,103		20,314		741,682		73,797
Others		44,845		41,437		142,634		121,859
		784,761		225,307		1,643,793		823,780
	$	53,507,811	$	50,885,502	$	157,238,260	$	150,587,632

- 48 -

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, 2021 for details.

a. Disaggregation of revenue

Please refer to Note 43 Segment Information for details.

b. Contract balances

	September 30, 2022			December 31, 2021			September 30, 2021			January 1, 2021
Trade notes and accounts receivable (Note 9)	$	22,278,929		$	23,947,107		$	21,381,611		$	22,621,902
Contract assets
Products and service bundling	$	7,636,305		$	7,197,206		$	6,893,783		$	7,232,134
Others		1,051,141			982,688			839,218			612,206
Less: Loss allowance		(18,299	)		(18,080	)		(17,201	)		(17,792	)
	$	8,669,147		$	8,161,814		$	7,715,800		$	7,826,548
Current	$	5,702,487		$	5,554,070		$	5,340,164		$	5,331,246
Noncurrent		2,966,660			2,607,744			2,375,636			2,495,302
	$	8,669,147		$	8,161,814		$	7,715,800		$	7,826,548
Contract liabilities
Telecommunications business	$	13,513,216		$	13,143,598		$	13,040,533		$	13,601,662
Project business		6,738,247			5,435,268			7,234,479			6,686,561
Products and service bundling		9,187			4,168			6,755			16,404
Others		475,498			491,298			442,662			421,166
	$	20,736,148		$	19,074,332		$	20,724,429		$	20,725,793
Current	$	13,611,671		$	12,234,276		$	13,905,112		$	13,436,706
Noncurrent		7,124,477			6,840,056			6,819,317			7,289,087
	$	20,736,148		$	19,074,332		$	20,724,429		$	20,725,793

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.

- 49 -

c. Incremental costs of obtaining contracts

	September 30, 2022		December 31, 2021		September 30, 2021
Noncurrent
Incremental costs of obtaining contracts	$	967,012	$	987,656	$	971,665

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 and nine months ended September 30, 2022 were $210,224 thousand and $628,476 thousand, respectively. Amortization expenses for the three months and nine months ended September 30, 2021 were $206,618 thousand and $602,028 thousand, respectively.

30. NET INCOME

a. Other income and expenses

	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021
Loss on disposal of property, plant and equipment, net	$	1,571	$	4,904	$	6,013	$	2,114

b. Other income

	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021
Dividend income	$	4,236	$	138,990	$	157,465	$	138,990
Rental income		19,629		18,106		58,796		50,495
Others		44,761		53,850		106,276		112,310
	$	68,626	$	210,946	$	322,537	$	301,795

c. Other gains and losses

	Three Months Ended September 30					Nine Months Ended September 30
	2022			2021		2022			2021
Valuation gain (loss) on financial assets and liabilities at fair value through profit or loss, net	$	(77,248	)	$	303,513	$	(140,571	)	$	527,382
Foreign currency exchange gain or loss, net		(44,175	)		101,721		(49,640	)		160,493

(Continued)

- 50 -

	Three Months Ended September 30					Nine Months Ended September 30
	2022			2021		2022			2021
Gain on disposal of investments accounted for using equity method, net	$	—		$	3,239	$	—		$	3,239
Gain on disposal of financial instruments, net		9			20		726			320
Others		3,348			2,594		25,824			(21,504	)
	$	(118,066	)	$	411,087	$	(163,661	)	$	669,930

(Concluded)

d. Interest expenses

	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021
Interest on bonds payable	$	41,895	$	35,636	$	119,523	$	95,999
Interest on lease liabilities		19,693		16,952		53,878		52,280
Interest paid to financial institutions		7,720		3,498		16,849		12,580
Others		4		3		14		972
	$	69,312	$	56,089	$	190,264	$	161,831

e. Impairment loss (reversal of impairment loss)

	Three Months Ended September 30						Nine Months Ended September 30
	2022			2021			2022		2021
Contract assets	$	(442	)	$	(331	)	$	219	$	(591	)
Trade notes and accounts receivable	$	19,172		$	104,024		$	90,906	$	183,756
Other receivables	$	2,787		$	(2,987	)	$	3,977	$	4,436
Inventories	$	9,049		$	50,017		$	71,839	$	82,500

f. Depreciation and amortization expenses

	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021
Property, plant and equipment	$	7,218,310	$	6,978,310	$	21,569,542	$	20,728,294
Right-of-use assets		999,348		998,861		2,980,821		2,988,238
Investment properties		10,927		10,569		32,690		31,705

(Continued)

- 51 -

	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021
Intangible assets	$	1,687,252	$	1,641,267	$	4,961,978	$	4,924,105
Incremental costs of obtaining contracts		210,224		206,618		628,476		602,028
Total depreciation and amortization expenses	$	10,126,061	$	9,835,625	$	30,173,507	$	29,274,370
Depreciation expenses summarized by functions
Operating costs	$	7,716,971	$	7,542,568	$	23,060,543	$	22,389,241
Operating expenses		511,614		445,172		1,522,510		1,358,996
	$	8,228,585	$	7,987,740	$	24,583,053	$	23,748,237
Amortization expenses summarized by functions
Operating costs	$	1,846,825	$	1,795,304	$	5,442,361	$	5,370,281
Marketing expenses		19,833		23,355		59,382		70,430
General and administrative expenses		18,214		18,179		51,709		53,370
Research and development expenses		12,604		11,047		37,002		32,052
	$	1,897,476	$	1,847,885	$	5,590,454	$	5,526,133

(Concluded)

g. Employee benefit expenses

	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021
Post-employment benefit
Defined contribution plans	$	217,106	$	196,482	$	634,279	$	583,452
Defined benefit plans		261,791		304,225		785,973		912,455
		478,897		500,707		1,420,252		1,495,907
Share-based payment
Equity-settled share - based payment		4,337		5,086		12,356		14,329
Other employee benefit (Note)		10,730,056		10,355,791		32,670,916		31,616,975
Total employee benefit expenses	$	11,213,290	$	10,861,584	$	34,103,524	$	33,127,211
Summary by functions
Operating costs	$	5,298,098	$	5,470,128	$	16,378,126	$	16,975,075
Operating expenses		5,915,192		5,391,456		17,725,398		16,152,136
	$	11,213,290	$	10,861,584	$	34,103,524	$	33,127,211

- 52 -

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.

The compensation to the employees and remuneration to the directors of 2021 and 2020 approved by the Board of Directors on February 23, 2022 and 2021, respectively, were as follows:

	Cash
	2021		2020
Compensation distributed to the employees	$	1,429,000	$	1,202,448
Remuneration paid to the directors		38,552		35,803

There was no difference between the initial accrued amounts recognized in 2021 and 2020 and the amounts approved by the Board of Directors in 2022 and 2021 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 September 30						Nine Months Ended September 30
	2022			2021			2022			2021
Current tax
Current tax expenses recognized for the period	$	2,434,206		$	2,204,728		$	7,034,949		$	6,487,320
Income tax on unappropriated earnings		—			1,849			30,379			33,094
Income tax adjustments on prior years		(319	)		(255	)		(118,926	)		(97,218	)
Others		4,981			369			5,965			742
		2,438,868			2,206,691			6,952,367			6,423,938
Deferred tax
Deferred tax expenses recognized for the period		(9,015	)		161,785			77,665			335,643

(Continued)

- 53 -

	Three Months Ended September 30					Nine Months Ended September 30
	2022			2021		2022		2021
Income tax adjustments on prior years	$	272		$	265	$	150,915	$	3,359
		(8,743	)		162,050		228,580		339,002
Income tax recognized in profit or loss	$	2,430,125		$	2,368,741	$	7,180,947	$	6,762,940

(Concluded)

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

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 September 30						Nine Months Ended September 30
	2022			2021			2022			2021
Net income used to compute the basic earnings per share
Net income attributable to the parent	$	9,359,249		$	9,366,784		$	28,075,670		$	27,119,256
Assumed conversion of all dilutive potential common stocks
Employee stock options and employee compensation of subsidiaries		(1,114	)		(983	)		(3,858	)		(3,198	)
Net income used to compute the diluted earnings per share	$	9,358,135		$	9,365,801		$	28,071,812		$	27,116,058

- 54 -

Weighted Average Number of Common Stocks

(Thousand Shares)

	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021
Weighted average number of common stocks used to compute the basic earnings per share		7,757,447		7,757,447		7,757,447		7,757,447
Assumed conversion of all dilutive potential common stocks
Employee compensation		1,706		1,609		7,467		7,041
Weighted average number of common stocks used to compute the diluted earnings per share		7,759,153		7,759,056		7,764,914		7,764,488

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)

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.

- 55 -

The compensation costs for stock options for the three months and nine months ended September 30, 2022 and 2021 were as follows:

	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021
Granted on November 13, 2020	$	2,433	$	2,433	$	7,296	$	7,298
Granted on October 31, 2018		17		42		52		126
Granted on December 19, 2017		—		35		—		121
	$	2,450	$	2,510	$	7,348	$	7,545

CHIEF modified the plan terms of stock options granted on November 13, 2020 in September 2021 and July 2022; therefore, the exercise price changed from $206.00 to $199.70 and $193.50 per share, repectively. The modification did not cause any incremental fair value granted.

CHIEF modified the plan terms of stock options granted on October 31, 2018 in September 2021 and July 2022; therefore, the exercise price changed from $138.70 to $134.50 and $130.30 per share, respectively. The modification did not cause any incremental fair value granted.

CHIEF modified the plan terms of stock options granted on December 19, 2017 in September 2021 and July 2022; therefore, the exercise price changed from $132.70 to $128.70 and $124.70 per share, respectively. The modification did not cause any incremental fair value granted.

Information about CHIEF’s outstanding stock options for the nine months ended September 30, 2022 and 2021 was as follows:

	Nine Months Ended September 30, 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		193.50		10.50		130.30		1.00			124.70
Options exercisable at end of the period		—		—		—		—		1.00			124.70
Weighted average remaining contractual life (years)		3.12				1.08				0.22

- 56 -

	Nine Months Ended September 30, 2021
	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		200.00		$	206.00		21.00	$	138.70		427.50		$	132.70
Options exercised		—			—		—		—		(213.75	)		132.70
Options forfeited		(6.00	)		—		—		—		(0.50	)		—
Options outstanding at end of the period		194.00			199.70		21.00		134.50		213.25			128.70
Options exercisable at end of the period		—			—		—		—		—			—
Weighted average remaining contractual life (years)		4.12					2.08				1.22

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.

- 57 -

The compensation costs for stock options for the three months and nine months ended September 30, 2022 and 2021 were as follows:

	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021
Granted on February 20, 2021	$	889	$	1,609	$	2,667	$	3,902
Granted on December 20, 2019		394		730		1,183		2,192
	$	1,283	$	2,339	$	3,850	$	6,094

Information about CHTSC’s outstanding stock options for the nine months ended September 30, 2022 and 2021 were as follows:

	Nine Months Ended September 30, 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		(797	)		19.085		(1,058	)		19.085
Options forfeited		(136	)		—		(42	)		—
Options outstanding at end of the period		2,391			19.085		2,074			19.085
Options exercisable at end of the period		20			19.085		—			—
Weighted average remaining contractual life (years)		3.39					2.22

- 58 -

	Nine Months Ended September 30, 2021
	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		—		$	—		4,328		$	19.085
Options granted		3,500			19.085		—			—
Options exercised		—			—		(1,082	)		19.085
Options forfeited		(176	)		—		(72	)		—
Options outstanding at end of the period		3,324			19.085		3,174			19.085
Options exercisable at end of the period		—			—		—			—
Weighted average remaining contractual life (years)		4.39					3.22

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

IISI issued 1,665 stock options in January 2014. Each option is eligible to subscribe for one thousand common stocks when exercisable. The options are granted to specific employees of IISI and its subsidiaries that meet the vesting conditions. The options of the IISI Plan are valid for seven years and the graded vesting schedule will vest at certain percentages starting from two years after the grant date. The exercise price of the original options is $14 per share. After the options are issued, if the common stocks of IISI change, the exercise price of the options should be adjusted according to the prescribed formula.

- 59 -

Information about IISI’s outstanding stock options for the nine months ended September 30, 2021 was as follows:

	Nine Months Ended September 30, 2021
	Granted in January 2014
	Number of Options			Weighted Average Exercise Price (NT$)
Employee stock options
Options outstanding at beginning of the period		530.00		$	14.00
Options exercised		(261.00	)		14.00
Options forfeited		(269.00	)		—
Options outstanding at end of the period		—			—
Options exercisable at end of the period		—			—
Weighted average remaining contractual life (years)		—

No compensation cost of stock options granted was recognized for the nine months ended September 30, 2021.

IISI 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 in January 2014
Grant-date share price (NT$)	$	14.51
Exercise price (NT$)	$	14.00
Dividend yield		6	%
Risk-free interest rate		1.16%~1.32	%
Expected life		4.5~5.5 years
Expected volatility		35.28%~35.97	%
Weighted average fair value of grants (NT$)	$	2,345

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

d. 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.

- 60 -

The compensation costs for stock options for the three months and nine months ended September 30, 2022 and 2021 were as follows:

	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021
Granted on May 31, 2022	$	353	$	—	$	470	$	—
Granted on February 26, 2021		251		237		688		690
	$	604	$	237	$	1,158	$	690

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 nine months ended September 30, 2022 and 2021 was as follows:

	Nine Months Ended September 30, 2022
	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 of the period		—	$	—		550		$	15.90
Options granted		600		16.87		—			—
Options forfeited		—		—		(40	)		—
Options outstanding at end of the period		600		16.87		510			15.90
Options exercisable at end of the period		—		—		—			—
Weighted average remaining contractual life (years)		3.67				2.41

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	Nine Months Ended September 30, 2021
	Granted on February 26, 2021
	Number of Options			Weighted Average Exercise Price (NT$)
Employee stock options
Options outstanding at beginning of the period		—		$	—
Options granted		690			16.87
Options forfeited		(90	)		—
Options outstanding at end of the period		600			15.90
Options exercisable at end of the period		—			—
Weighted average remaining contractual life (years)		3.41

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	Nine Months Ended September 30
	2022		2021
Increase in property, plant and equipment	$	18,692,919	$	23,978,397
Changes in other payables		1,526,232		(947,000	)
Acquisition of property, plant and equipment	$	20,219,151	$	23,031,397

(Continued)

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	Nine Months Ended September 30
	2022		2021
Disposal of financial assets at fair value through other comprehensive income	$	—	$	2,710,921
Changes in other current monetary assets		—		270,321
Reclassified to investment accounted for using equity method		—		(75,353	)
Proceeds from disposal of financial assets at fair value through other comprehensive income	$	—	$	2,905,889

(Concluded)

Financing Activities

	Balance on January 1, 2022		Cash Flows From Financing Activities			Changes in Non-Cash Transactions					Cash Flows From Operation Activities - Interest Paid			Balance on September 30, 2022
						New Leases		Others
Lease liabilities	$	10,272,253	$	(2,992,960	)	$	3,335,259	$	1,702		$	(53,878	)	$	10,562,376
	Balance on January 1, 2021		Cash Flows From Financing Activities			Changes in Non-Cash Transactions					Cash Flows From Operation Activities - Interest Paid			Balance on September 30, 2021
						New Leases		Others
Lease liabilities	$	9,596,667	$	(2,834,017	)	$	2,636,051	$	(154,535	)	$	(52,280	)	$	9,191,886

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.

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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.

	September 30, 2022				December 31, 2021				September 30, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
Financial liabilities
Financial liabilities measured at amortized cost
Bonds payable	$	30,476,032	$	30,448,420	$	26,976,675	$	27,082,090	$	26,975,582	$	27,086,638

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.

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

September 30, 2022

	Level 1		Level 2		Level 3		Total
Financial assets at FVTPL
Derivatives	$	—	$	3,771	$	—	$	3,771
Listed stocks		432		—		—		432
Non-listed stocks		—		—		920,695		920,695
Limited partnership		—		—		115,386		115,386
Film and drama investing agreement		—		—		14,633		14,633
	$	432	$	3,771	$	1,050,714	$	1,054,917
Hedging financial assets	$	—	$	12,752	$	—	$	12,752
Financial assets at FVOCI
Listed stocks	$	261,138	$	—	$	—	$	261,138
Non-listed stocks		—		—		3,222,880		3,222,880
	$	261,138	$	—	$	3,222,880	$	3,484,018

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December 31, 2021

	Level 1		Level 2		Level 3		Total
Financial assets at FVTPL
Listed stocks	$	2,566	$	—	$	—	$	2,566
Non-listed stocks		—		—		884,670		884,670
Limited partnership		—		—		24,105		24,105
	$	2,566	$	—	$	908,775	$	911,341
Financial assets at FVOCI
Listed stocks	$	458,582	$	—	$	—	$	458,582
Non-listed stocks		—		—		3,157,306		3,157,306
	$	458,582	$	—	$	3,157,306	$	3,615,888
Financial liabilities at FVTPL
Derivatives	$	—	$	6,180	$	—	$	6,180
Hedging financial liabilities	$	—	$	8,286	$	—	$	8,286

September 30, 2021

	Level 1		Level 2		Level 3		Total
Financial assets at FVTPL
Listed stocks	$	2,401	$	—	$	—	$	2,401
Non-listed stocks		—		—		1,206,096		1,206,096
Limited partnership		—		—		25,000		25,000
	$	2,401	$	—	$	1,231,096	$	1,233,497
Financial assets at FVOCI
Listed stocks	$	160,467	$	—	$	—	$	160,467
Non-listed stocks		—		—		3,174,503		3,174,503
	$	160,467	$	—	$	3,174,503	$	3,334,970
Hedging financial liabilities	$	—	$	9,330	$	—	$	9,330

There were no transfers between Levels 1 and 2 for the nine months ended September 30, 2022 and 2021.

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

Nine months ended September 30, 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
Acquisition		313,848			—			313,848
Recognized in profit or loss under “Other gains and losses”		(150,342	)		—			(150,342	)
Recognized in other comprehensive income under “Unrealized gain or loss on financial assets at fair value through other comprehensive income”		—			72,758			72,758
Proceeds from capital reduction of the investee		(21,567	)		(7,184	)		(28,751	)
Balance on September 30, 2022	$	1,050,714		$	3,222,880		$	4,273,594
Unrealized gain or loss for the nine months ended September 30, 2022	$	(143,825	)

Nine months ended September 30, 2021

Financial Assets	Measured at Fair Value through Profit or Loss		Measured at Fair Value through Other Comprehensive Income			Total
Balance on January 1, 2021	$	677,202	$	4,438,999		$	5,116,201
Acquisition		25,000		81,000			106,000
Reclassified to investments accounted for using equity method		—		(75,353	)		(75,353	)
Recognized in profit or loss under “Other gains and losses”		528,894		—			528,894
Recognized in other comprehensive income under “Unrealized gain or loss on financial assets at fair value through other comprehensive income”		—		(1,270,143	)		(1,270,143	)
Balance on September 30, 2021	$	1,231,096	$	3,174,503		$	4,405,599
Unrealized gain or loss for the nine months ended September 30, 2021	$	528,894

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.

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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 agreement 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 Company originally used the market approach to measure the fair value of its investment in Taipei Financial Center Corp.; however, as the stock market was impacted by COVID-19 pandemic, the multiples of the referenced companies were changed significantly. With continuing impact of COVID-19 pandemic, the Company evaluated that the income approach, instead of the former market approach, would better reflect the future cash flows of Taipei Financial Center Corp. Therefore, the Company changed its valuation technique to the income approach starting from the second quarter of 2021. 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.

	September 30, 2022	December 31, 2021	September 30, 2021
Discount for lack of marketability	16.05%~20.00%	16.05%~20.00%	14.73%~20.00%
Noncontrolling interests discount	17.29%~25.00%	17.29%~25.00%	17.29%~25.00%
Growth rate of long-term revenue	0.19%	0.19%	0.19%
Discount rate	7.24%	8.50%	8.30%

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.

	September 30, 2022			September 30, 2021
Discount for lack of marketability
5% increase	$	(33,521	)	$	(45,292	)
5% decrease	$	33,521		$	45,292
Noncontrolling interests discount
5% increase	$	(21,731	)	$	(33,404	)
5% decrease	$	21,731		$	33,404
Long-term revenue growth rates
0.1% increase	$	28,872		$	25,772
0.1% decrease	$	(28,319	)	$	(25,298	)
Discount rate
1% increase	$	(328,770	)	$	(299,223	)
1% decrease	$	405,971		$	365,351

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Categories of Financial Instruments

	September 30, 2022		December 31, 2021		September 30, 2021
Financial assets
Measured at FVTPL
Mandatorily measured at FVTPL	$	1,054,917	$	911,341	$	1,233,497
Hedging financial assets		12,752		—		—
Financial assets at amortized cost (Note a)		62,515,229		71,799,195		53,157,829
Financial assets at FVOCI		3,484,018		3,615,888		3,334,970
Financial liabilities
Measured at FVTPL
Held for trading		—		6,180		—
Hedging financial liabilities		—		8,286		9,330
Measured at amortized cost (Note b)		62,363,439		64,746,363		62,042,583

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

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

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

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.

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

1) Foreign currency risk

The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities at the balance sheet dates were as follows:

	September 30, 2022		December 31, 2021		September 30, 2021
Assets
USD	$	2,020,473	$	2,009,607	$	1,826,622
EUR		83,311		48,962		33,120
SGD		492,790		259,571		157,830
JPY		16,093		37,123		18,240
RMB		26,946		88,654		49,936
HKD		7,732		69,776		68,406
Liabilities
USD		921,450		889,578		846,514
EUR		608,312		861,481		741,079
SGD		1,995,352		1,964,490		874,816
JPY		10,698		12,662		6,838
RMB		44,031		38,521		53,837
HKD		17,600		15,792		16,080

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

	September 30, 2022		December 31, 2021		September 30, 2021
Assets
EUR	$	16,523	$	—	$	—
Liabilities
EUR		—		14,466		9,330

Foreign currency sensitivity analysis

The Company is mainly exposed to the fluctuations of the currencies USD, EUR, SGD, JPY, RMB and HKD as listed above.

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.

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	Nine Months Ended September 30
	2022			2021
Profit or loss
Monetary assets and liabilities (a)
USD	$	54,951		$	49,005
EUR		(26,250	)		(35,398	)
SGD		(75,128	)		(35,849	)
JPY		270			570
RMB		(854	)		(195	)
HKD		(493	)		2,616
Derivatives (b)
EUR		6,252			—
Equity
Derivatives (c)
EUR		21,882			25,694

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:

	September 30, 2022		December 31, 2021		September 30, 2021
Fair value interest rate risk
Financial assets	$	26,407,199	$	27,670,982	$	12,842,693
Financial liabilities		41,038,408		37,248,928		36,167,468
Cash flow interest rate risk
Financial assets		8,033,546		14,171,472		13,615,718
Financial liabilities		2,192,000		1,665,000		1,666,000

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 $14,604 thousand and $29,874 thousand for the nine months ended September 30, 2022 and 2021, 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 $51,826 thousand and $174,201 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL and financial assets at FVOCI for the nine months ended September 30, 2022. If equity prices had been 5% higher/lower, pre-tax profit and pre-tax other comprehensive income would have increased/decreased by $61,675 thousand and $166,749 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL and financial assets at FVOCI for the nine months ended September 30, 2021.

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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September 30, 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		—	$	32,731,918	$	—	$	1,800,357	$	5,075,856	$	—	$	39,608,131
Floating interest rate instruments		1.42		—		202,000		390,000		1,600,000		—		2,192,000
Fixed interest rate instruments		0.53		—		—		—		21,700,000		8,800,000		30,500,000
			$	32,731,918	$	202,000	$	2,190,357	$	28,375,856	$	8,800,000	$	72,300,131

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	$	3,268,826	$	4,384,107	$	2,082,345	$	997,937	$	10,733,215

December 31, 2021

	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		—	$	40,894,077	$	—	$	1,997,277	$	5,336,343	$	—	$	48,227,697
Floating interest rate instruments		0.95		—		15,000		50,000		1,600,000		—		1,665,000
Fixed interest rate instruments		0.51		—		—		—		10,700,000		16,300,000		27,000,000
			$	40,894,077	$	15,000	$	2,047,277	$	17,636,343	$	16,300,000	$	76,892,697

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	$	3,227,909	$	4,125,893	$	1,808,056	$	1,243,987	$	10,405,845

September 30, 2021

	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		—	$	36,214,432	$	—	$	1,636,867	$	4,826,659	$	—	$	42,677,958
Floating interest rate instruments		0.94		—		60,000		6,000		1,600,000		—		1,666,000
Fixed interest rate instruments		0.51		—		—		—		10,700,000		16,300,000		27,000,000
			$	36,214,432	$	60,000	$	1,642,867	$	17,126,659	$	16,300,000	$	71,343,958

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	$	3,253,105	$	4,127,277	$	1,670,259	$	269,652	$	9,320,293

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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
September 30, 2022
Gross settled
Forward exchange contracts
Inflow	$	—	$	562,839		$	—	$	—	$	562,839
Outflow		—		546,316			—		—		546,316
	$	—	$	16,523		$	—	$	—	$	16,523
December 31, 2021
Gross settled
Forward exchange contracts
Inflow	$	—	$	470,395		$	—	$	—	$	470,395
Outflow		—		484,861			—		—		484,861
	$	—	$	(14,466	)	$	—	$	—	$	(14,466	)
September 30, 2021
Gross settled
Forward exchange contracts
Inflow	$	—	$	515,129		$	—	$	—	$	515,129
Outflow		—		524,459			—		—		524,459
	$	—	$	(9,330	)	$	—	$	—	$	(9,330	)

2) Financing facilities

	September 30, 2022		December 31, 2021		September 30, 2021
Facilities of unsecured bank loan
Amount used	$	592,000	$	65,000	$	66,800
Amount unused		59,123,016		61,620,489		57,176,845
	$	59,715,016	$	61,685,489	$	57,243,645
Secured bank loan facility
Amount used	$	1,600,000	$	1,600,000	$	1,600,000
Amount unused		—		—		—
	$	1,600,000	$	1,600,000	$	1,600,000

- 73 -

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.
Emplus Technologies, Inc.	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
Alliance Digital Tech Co., Ltd.	Associate (Note 1)
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 (Note 2)
Imedtac Co., Ltd.	Associate (Note 2)
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.	One of the directors of E-Life Mall and a director of SENAO are members of an immediate family
Engenius Technologies Co., Ltd.	Chairman of Engenius Technologies Co., Ltd. is a member of SENAO’s management
Cheng Keng Investment Co., Ltd.	Chairman of Cheng Keng Investment Co., Ltd. and SENAO’s chief executive officer are members of an immediate family

(Continued)

- 74 -

Company	Relationship
Cheng Feng Investment Co., Ltd.	Chairman of Cheng Feng Investment Co., Ltd. and SENAO’s chief executive officer are members of an immediate family
All Oriented Investment Co., Ltd.	Chairman of All Oriented Investment Co., Ltd. and SENAO’s chief executive officer are members of an immediate family
Hwa Shun Investment Co., Ltd.	Chairman of Hwa Shun Investment Co., Ltd. and SENAO’s chief executive officer are members of an immediate family
Yu Yu Investment Co., Ltd.	Chairman of Yu Yu Investment Co., Ltd. and SENAO’s chief executive officer are members of an immediate family
Divine Fine Foods & Wine Inc.	Chairman of Divine Fine Foods & Wine Inc. and SENAO’s chief executive officer are members of an immediate family (Note 3)
Kangsin Co., Ltd.	Chairman of Kangsin Co., Ltd. and SENAO’s chief executive officer are members of an immediate family
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

(Concluded)

Note 1: ADT completed its liquidation in August 2021. Please refer to Note 14.

Note 2: ATT and IME were previously treated as financial assets at FVOCI. As the Company acquired seats in the Board of Directors of each company and has significant influence over ATT and IME in July and August 2021, respectively, these investments are reclassified as associates. Please refer to Note 14.

Note 3: Divine Fine Foods & Wine Inc. replaced its responsible persons in October 2021. Since then, Divine Fine Foods & Wine Inc. is no longer a related party of the Company.

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 September 30				Nine Months Ended September 30
	2022		2021		2022		2021
Associates	$	135,613	$	284,584	$	286,029	$	425,942
Others		19,991		12,859		45,244		38,425
	$	155,604	$	297,443	$	331,273	$	464,367

- 75 -

	Operating Costs and Expenses
	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021
Associates	$	450,864	$	204,133	$	829,737	$	451,646
Others		4,338		5,137		73,803		64,941
	$	455,202	$	209,270	$	903,540	$	516,587

2) Non-operating transactions

	Non-operating Income and Expenses
	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021
Associates	$	9,367	$	9,641	$	27,683	$	28,582
Others		189		454		668		1,006
	$	9,556	$	10,095	$	28,351	$	29,588

3) Receivables

	September 30, 2022		December 31, 2021		September 30, 2021
Associates	$	101,251	$	34,864	$	61,608
Others		5,865		6,664		4,753
	$	107,116	$	41,528	$	66,361

4) Payables

	September 30, 2022		December 31, 2021		September 30, 2021
Associates	$	472,689	$	385,327	$	481,865
Others		3,597		6,031		3,467
	$	476,286	$	391,358	$	485,332

5) Customers’ deposits

	September 30, 2022		December 31, 2021		September 30, 2021
Associates	$	34,167	$	16,120	$	13,823
Others		284		—		—
	$	34,451	$	16,120	$	13,823

- 76 -

6) Acquisition of property, plant and equipment

	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021
Associates	$	4,838	$	84,732	$	4,838	$	186,577

7) Acquisition of intangible assets

	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021
Associates	$	—	$	—	$	677	$	—

8) Disposal of property, plant and equipment

	Proceeds				Gain on Disposal
	Three Months Ended September 30				Three Months Ended September 30
	2022		2021		2022		2021
Associates	$	—	$	—	$	—	$	—

	Proceeds				Gain on Disposal
	Nine Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021
Associates	$	—	$	9,800	$	—	$	1,628

9) 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.

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

	September 30, 2022		December 31, 2021		September 30, 2021
Lease liabilities - current	$	188,130	$	173,306	$	172,976
Lease liabilities - noncurrent		1,754,368		1,740,557		650,411
	$	1,942,498	$	1,913,863	$	823,387

- 77 -

The interest expense recognized for the aforementioned lease liabilities for the three months and nine months ended September 30, 2022 were $2,033 thousand and $6,096 thousand, respectively. The interest expense recognized for the aforementioned lease liabilities for the three months and nine months ended September 30, 2021 were $1,759 thousand and $5,630 thousand, respectively.

c. Compensation of key management personnel

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

	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021
Short-term employee benefits	$	38,484	$	73,418	$	251,797	$	237,505
Post-employment benefits		1,764		1,961		5,340		5,766
Share-based payment		402		411		1,204		1,238
	$	40,650	$	75,790	$	258,341	$	244,509

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.

	September 30, 2022		December 31, 2021		September 30, 2021
Property, plant and equipment	$	2,410,160	$	2,432,296	$	2,439,674
Restricted assets (included in other assets - others)		127,892		163,012		200,357
	$	2,538,052	$	2,595,308	$	2,640,031

39. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

Except for those disclosed in other notes, the Company’s significant commitments and contingent liabilities as of September 30, 2022 were as follows:

a. Acquisitions of land and buildings of $59,484 thousand.

b. Acquisitions of telecommunications-related inventory and equipment of $26,407,340 thousand.

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.

- 78 -

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.

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:

	September 30, 2022
	Foreign Currencies (Thousands)		Exchange Rate		New Taiwan Dollars (Thousands)
Assets denominated in foreign currencies
Monetary items
USD	$	63,637		31.75	$	2,020,473
EUR		2,665		31.26		83,311
SGD		22,188		22.21		492,790
JPY		73,116		0.220		16,093
RMB		6,024		4.473		26,946
HKD		1,912		4.044		7,732
Non-monetary items
Investments accounted for using equity method
SGD		15,174		22.21		337,008
VND		388,121,058		0.0013		510,379
Liabilities denominated in foreign currencies
Monetary items
USD		29,022		31.75		921,450
EUR		19,460		31.26		608,312
SGD		89,840		22.21		1,995,352
JPY		48,605		0.220		10,698
RMB		9,844		4.473		44,031
HKD		4,352		4.044		17,600

- 79 -

	December 31, 2021
	Foreign Currencies (Thousands)		Exchange Rate		New Taiwan Dollars (Thousands)
Assets denominated in foreign currencies
Monetary items
USD	$	72,601		27.68	$	2,009,607
EUR		1,563		31.32		48,962
SGD		12,687		20.46		259,571
JPY		154,358		0.241		37,123
RMB		20,408		4.344		88,654
HKD		19,661		3.549		69,776
Non-monetary items
Investments accounted for using equity method
SGD		25,326		20.46		518,165
VND		374,139,749		0.0012		447,097
Liabilities denominated in foreign currencies
Monetary items
USD		32,138		27.68		889,578
EUR		27,506		31.32		861,481
SGD		96,016		20.46		1,964,490
JPY		52,648		0.241		12,662
RMB		8,868		4.344		38,521
HKD		4,450		3.549		15,792

	September 30, 2021
	Foreign Currencies (Thousands)		Exchange Rate		New Taiwan Dollars (Thousands)
Assets denominated in foreign currencies
Monetary items
USD	$	65,588		27.85	$	1,826,622
EUR		1,025		32.32		33,120
SGD		7,710		20.47		157,830
JPY		73,253		0.249		18,240
RMB		11,599		4.305		49,936
HKD		19,129		3.576		68,406
Non-monetary items
Investments accounted for using equity method
SGD		28,956		20.47		592,728
VND		349,703,734		0.0012		421,393

(Continued)

- 80 -

	September 30, 2021
	Foreign Currencies (Thousands)		Exchange Rate		New Taiwan Dollars (Thousands)
Liabilities denominated in foreign currencies
Monetary items
USD	$	30,395		27.85	$	846,514
EUR		22,929		32.32		741,079
SGD		42,736		20.47		874,816
JPY		27,463		0.249		6,838
RMB		12,506		4.305		53,837
HKD		4,497		3.576		16,080

(Concluded)

The unrealized foreign currency exchange gains were $25,269 thousand and $29,953 thousand for the three months ended September 30, 2022 and 2021, respectively. The unrealized foreign currency exchange gains were $66,012 thousand and $109,221 thousand for the nine months ended September 30, 2022 and 2021, 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.

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: Please see Table 3.

e. Acquisition of individual real estate at costs of at least $300 million or 20% of the paid-in capital: Please see Table 4.

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 5.

h. Receivables from related parties amounting to $100 million or 20% of the paid-in capital: Please see Table 6.

i. Names, locations, and other information of investees on which the Company exercises significant influence (excluding investments in Mainland China): Please see Table 7.

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

- 81 -

k. Investments in Mainland China: Please see Table 8.

l. Intercompany relationships and significant intercompany transactions: Please see Table 9.

m. Information of main stakeholders: Please see Table 10.

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” and restated the corresponding items of segment information for the comparative period. 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.

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
For the three months ended September 30, 2022
Revenues
From external customers	$	32,834,085	$	17,385,725	$	1,801,094	$	1,486,907	$	53,507,811
Intersegment revenues		544,663		181,493		240,377		87,792		1,054,325
Segment revenues	$	33,378,748	$	17,567,218	$	2,041,471	$	1,574,699		54,562,136
Intersegment elimination										(1,054,325	)
Consolidated revenues									$	53,507,811
Segment operating costs and expenses	$	25,749,031	$	12,867,189	$	1,497,480	$	1,210,703	$	41,324,403
Segment income before income tax	$	7,385,590	$	3,889,978	$	564,560	$	366,127	$	12,206,255
For the nine months ended September 30, 2022
Revenues
From external customers	$	97,074,198	$	50,949,153	$	5,273,664	$	3,941,245	$	157,238,260
Intersegment revenues		1,469,839		618,077		615,351		254,847		2,958,114
Segment revenues	$	98,544,037	$	51,567,230	$	5,889,015	$	4,196,092		160,196,374
Intersegment elimination										(2,958,114	)
Consolidated revenues									$	157,238,260
Segment operating costs and expenses	$	76,056,499	$	37,778,019	$	4,334,090	$	3,195,909	$	121,364,517
Segment income before income tax	$	21,722,915	$	11,645,050	$	1,627,634	$	1,387,947	$	36,383,546

(Continued)

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	Consumer Business		Enterprise Business		International Business		Others		Total
For the three months ended September 30, 2021
Revenues
From external customers	$	31,618,085	$	16,548,228	$	1,469,236	$	1,249,953	$	50,885,502
Intersegment revenues		664,074		275,125		238,720		122,715		1,300,634
Segment revenues	$	32,282,159	$	16,823,353	$	1,707,956	$	1,372,668		52,186,136
Intersegment elimination										(1,300,634	)
Consolidated revenues									$	50,885,502
Segment operating costs and expenses	$	25,218,461	$	11,644,558	$	1,503,629	$	1,072,089	$	39,438,737
Segment income before income tax	$	6,727,300	$	4,401,243	$	212,018	$	760,957	$	12,101,518
For the nine months ended September 30, 2021
Revenues
From external customers	$	94,141,603	$	48,261,212	$	4,467,923	$	3,716,894	$	150,587,632
Intersegment revenues		2,106,716		1,022,958		718,880		256,041		4,104,595
Segment revenues	$	96,248,319	$	49,284,170	$	5,186,803	$	3,972,935		154,692,227
Intersegment elimination										(4,104,595	)
Consolidated revenues									$	150,587,632
Segment operating costs and expenses	$	74,572,404	$	34,663,129	$	4,536,758	$	2,984,698	$	116,756,989
Segment income before income tax	$	20,467,568	$	12,021,629	$	568,466	$	1,829,145	$	34,886,808

(Concluded)

Main Products and Service Revenues

	Three Months Ended September 30				Nine Months Ended September 30
	2022		2021		2022		2021
Consumer Business
Mobile services	$	13,048,474	$	12,384,115	$	38,511,014	$	36,612,768
Fixed-line services		10,730,125		10,726,077		32,056,360		31,652,448
Sales		8,316,824		7,890,805		24,785,402		24,343,395
Others		738,662		617,089		1,721,422		1,532,992
		32,834,085		31,618,086		97,074,198		94,141,603
Enterprise Business
Fixed-line services		8,705,661		8,884,540		25,866,237		26,053,802
Project business		5,254,336		4,759,628		15,322,689		13,462,484
Mobile services		2,223,347		2,206,262		6,675,099		6,251,704
Others		1,202,381		697,799		3,085,128		2,493,222
		17,385,725		16,548,229		50,949,153		48,261,212
International Business
Fixed-line services		1,224,153		1,219,785		3,709,200		3,702,161
Project business		363,894		146,787		1,111,653		522,915
Others		213,047		102,664		452,811		242,847
		1,801,094		1,469,236		5,273,664		4,467,923
Others
Sales		1,278,138		1,129,717		3,364,893		3,026,512
Others		208,769		120,234		576,352		690,382
		1,486,907		1,249,951		3,941,245		3,716,894
	$	53,507,811	$	50,885,502	$	157,238,260	$	150,587,632

- 83 -

TABLE 1

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED

NINE MONTHS ENDED SEPTEMBER 30, 2022

(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	$	611,974	$	300,000	$	300,000	$	300,000	$	—		4.90	$	3,059,872	Yes	No	No		Notes 3 and 4
		Wiin Technology Co., Ltd.	b		611,974		200,000		200,000		200,000		—		3.27		3,059,872	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.

- 84 -

TABLE 2

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

MARKETABLE SECURITIES HELD

SEPTEMBER 30, 2022

(Amounts in Thousands of New Taiwan Dollars)

Held Company Name	Marketable Securities Type and Name	Relationship with the Company		Financial Statement Account	September 30, 2022								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	$	2,991,720		12	$	2,991,720		—
	Innovation Works Development Fund, L.P.		—	Financial assets at FVTPL -noncurrent		—		100,758		4		100,758		—
	Industrial Bank of Taiwan II Venture Capital Co., Ltd. (IBT II)		—	Financial assets at FVOCI		5,252		13,412		17		13,412		—
	Global Mobile Corp.		—	Financial assets at FVOCI		7,617		—		3		—		—
	Innovation Works Limited		—	Financial assets at FVOCI		1,000		2,610		2		2,610		—
	RPTI Intergroup International Ltd.		—	Financial assets at FVOCI		4,765		—		10		—		—
	Taiwan mobile payment Co., Ltd.		—	Financial assets at FVOCI		1,200		4,230		2		4,230		—
	Taiwania Capital Buffalo Fund Co., Ltd.		—	Financial assets at FVTPL -noncurrent		555,600		633,470		13		633,470		—
	4 Gamers Entertainment Inc.		—	Financial assets at FVOCI		136		135,700		19.9		135,700		—
	TOP TAIWAN XIV VENTURE CAPITAL CO., LTD.		—	Financial assets at FVTPL -noncurrent		20,000		186,467		10		186,467		—
	Limited partnership
	Taiwania Capital Buffalo Fund VI, L.P.		—	Financial assets at FVTPL -noncurrent		—		97,418		11		97,418		—
Senao International Co., Ltd.	Stocks
	N.T.U. Innovation Incubation Corporation		—	Financial assets at FVOCI		1,200		9,497		9		9,497		—
	UUPON Inc.		—	Financial assets at FVOCI		109		258		2		258		—
CHIEF Telecom Inc.	Stocks
	3 Link Information Service Co., Ltd.		—	Financial assets at FVOCI		374		284		10		284		—
	WPG Holdings Limited		—	Financial assets at FVTPL -current		9		432		—		432		Note 2
	WPG Holdings Limited		—	Financial assets at FVOCI		2,102		101,317		—		101,317		Note 2
	WT Microelectronics Co., Ltd.		—	Financial assets at FVOCI		361		17,364		—		17,364		Note 2
Chunghwa Investment Co., Ltd.	Stocks
	Tatung Technology Inc.		—	Financial assets at FVOCI		4,571		65,169		11		65,169		—
	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		2,000		51,600		7		51,600		Note 2
	PChome Online Inc.		—	Financial assets at FVOCI		1,875		90,857		1		90,857		Note 2
	Limited partnership
	Taiwania Capital Buffalo Fund V, L.P.		—	Financial assets at FVTPL - noncurrent		—		17,968		3		17,968		—

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

Note 2: Fair value was based on the closing price on September 30, 2022.

- 85 -

TABLE 3

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

MARKETABLE SECURITIES ACQUIRED AND DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL

NINE MONTHS ENDED SEPTEMBER 30, 2022

(Amounts in Thousands of New Taiwan Dollars)

Company Name	Marketable Securities Type and Name	Financial Statement Account	Counter-party	Nature of Relationship		Beginning Balance				Acquisition				Disposal								Ending Balance
						Shares (Thousands/ Thousand Units)		Amount		Shares (Thousands/ Thousand Units)		Amount		Shares (Thousands/ Thousand Units)		Amount		Carrying Value		Gain on Disposal		Shares (Thousands/ Thousand Units)		Amount
Chunghwa Precision Test Tech. Co., Ltd.	Stocks TestPro Investment Co., Ltd.	Investments accounted for using equity method	Invested and established		Subsidiary		—	$	—		13,500	$	135,000		—	$	—	$	—	$	—		13,500	$	135,000 (Note	)
TestPro Investment Co., Ltd.	Stocks NavCore Tech. Co., Ltd	Investments accounted for using equity method	Invested and established		Subsidiary		—		—		10,850		108,500		—		—		—		—		10,850		108,500 (Note	)

Note:     Showing at their original investment amounts. The amount was eliminated upon consolidation.

- 86 -

TABLE 4

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

ACQUISITION OF INDIVIDUAL REAL ESTATE AT COSTS OF AT LEAST $300 MILLION OR 20% OF THE PAID-IN CAPITAL

NINE MONTHS ENDED SEPTEMBER 30, 2022

(Amounts in Thousands of New Taiwan Dollars)

Buyer

Property

Event Date

Transaction Amount

Payment Status

Counterparty

Relationship

Information on Previous Title Transfer If Counterparty is a Related Party

Pricing Reference

Purpose of Acquisition

Other Terms

Property Owner

Relationship

Transaction Date

Amount

Chunghwa Precision Test Tech. Co., Ltd.

Land

2021.01~2022.05

$

534,030

Fully paid

Taiwan Powder Technologies Co., Ltd.

—

Not applicable

Not applicable

Not applicable

Not applicable

According to appraisal report

Space requirements for future business expansion and operational considerations

—

- 87 -

TABLE 5

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

NINE MONTHS ENDED SEPTEMBER 30, 2022

(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 (Notes 2 and 5)		% to Total		Payment Terms	Unit Price		Payment Terms		Ending Balance (Notes 3 and 5)			% to Total
Chunghwa Telecom Co., Ltd.	Senao International Co., Ltd.	Subsidiary	Sales	$	2,250,032		2	30 days	$	—		—	$	543,101			3
			Purchase		672,665		1	30~90 days		—		—		(1,043,944	)		(8	)
	Aval Technologies Co., Ltd.	Subsidiary	Purchase		254,473		—	30 days		—		—		(120	)		—
	CHIEF Telecom Inc.	Subsidiary	Sales		360,339		—	30 days		—		—		86,165			—
	Chunghwa System Integration Co., Ltd.	Subsidiary	Purchase		994,023		1	30 days		—		—		(399,887	)		(3	)
	Honghwa International Co., Ltd.	Subsidiary	Purchase		4,737,478		6	30~60 days		—		—		(874,521	)		(6	)
	Donghwa Telecom Co., Ltd.	Subsidiary	Sales		135,029		—	30 days		—		—		47,619			—
			Purchase		405,356		1	90 days		—		—		(185,361	)		(1	)
	Chunghwa Telecom Global, Inc.	Subsidiary	Sales		102,678		—	90 days		—		—		24,031			—
			Purchase		239,210		—	90 days		—		—		(38,654	)		—
	CHT Security Co., Ltd.	Subsidiary	Purchase		251,764		—	30 days		—		—		(46,269	)		—
	International Integrated Systems, Inc.	Subsidiary	Purchase		530,754		1	30 days		—		—		(165,452	)		(1	)
	Senyoung Insurance Agent Co., Ltd.	Subsidiary	Sales		101,396		—	90 days		—		—		42,405			—
	Taiwan International Standard Electronics Co., Ltd.	Associate	Purchase		475,621		1	30~90 days		—		—		(202,047	)		(2	)
Senao International Co., Ltd.	Chunghwa Telecom Co., Ltd.	Parent company	Sales		5,438,390		24	30~90 days		—		—		1,043,655			51
			Purchase		2,119,366		11	30 days		—		—		(518,103	)		(23	)
	Aval Technologies Co., Ltd.	Subsidiary	Sales		288,232		1	60 days		—		—		81,375			4
			Purchase		161,421		1	30 days		—		—		(8,675	)		—
CHIEF Telecom Inc.	Chunghwa Telecom Co., Ltd.	Parent company	Sales		173,245		8	60 days		—		—		8,043			3
			Purchase		360,909		31	30 days		—		—		(86,165	)		(63	)
	So-net Entertainment Taiwan Limited	Associate	Sales		105,541		5	30 days		—		—		24,824			10
Chunghwa System Integration Co., Ltd.	Chunghwa Telecom Co., Ltd.	Parent company	Sales		1,123,977		82	30 days		—		—		397,183			76
Honghwa International Co., Ltd.	Chunghwa Telecom Co., Ltd.	Parent company	Sales		4,808,281		97	30~60 days		—		—		874,025			98
Donghwa Telecom Co., Ltd.	Chunghwa Telecom Co., Ltd.	Parent company	Sales		405,356		46	90 days		—		—		185,361			37
			Purchase		135,029		17	30 days		—		—		(47,619	)		(37	)
Chunghwa Telecom Global, Inc.	Chunghwa Telecom Co., Ltd.	Parent company	Sales		239,210		52	90 days		—		—		38,654			44
			Purchase		102,603		33	90 days		—		—		(24,031	)		(15	)
CHT Security Co., Ltd.	Chunghwa Telecom Co., Ltd.	Parent company	Sales		266,201		30	30 days		—		—		46,265			25
International Integrated Systems, Inc.	Chunghwa Telecom Co., Ltd.	Parent company	Sales		198,198		31	60 days		—		—		76,997			35
Aval Technologies Co., Ltd.	Chunghwa Telecom Co., Ltd.	Parent company	Sales		254,473		1	30 days		—		—		120			—
Chunghwa Precision Test Tech. Co., Ltd.	Su Zhou Precision Test Tech. Ltd.	Subsidiary	Sales		146,156		5	90 days		—		—		71,472			8

Note 1: Purchases include costs to acquire services.

Note 2: The differences were because Chunghwa Telecom Co., Ltd. and subsidiaries classified the amount as incremental costs of obtaining contracts, property, plant and equipment, intangible assets, and operating expenses.

Note 3: Notes and accounts receivable did not include the amounts collected for others and other receivables.

Note 4: 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 5: All intercompany transactions, balances, income and expenses are eliminated upon consolidation.

- 88 -

TABLE 6

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

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

SEPTEMBER 30, 2022

(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	$	697,212 (Note 2	)		11.14	$	—		—	$	57,673	$	—
Senao International Co., Ltd.	Chunghwa Telecom Co., Ltd.	Parent company		1,336,621 (Note 2	)		7.73		—		—		10,904		—
Chunghwa System Integration Co., Ltd.	Chunghwa Telecom Co., Ltd.	Parent company		397,183 (Note 2	)		3.74		—		—		120,239		—
Honghwa International Co., Ltd.	Chunghwa Telecom Co., Ltd.	Parent company		874,025 (Note 2	)		7.22		—		—		264,888		—
Donghwa Telecom Co., Ltd.	Chunghwa Telecom Co., Ltd.	Parent company		185,361 (Note 2	)		2.85		—		—		134,597		—
Chunghwa Precision Test Tech. Co., Ltd.	Su Zhou Precision Test Tech. Ltd.	Subsidiary		71,472 (Note 2	)		2.72		—		—		—		—

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.

- 89 -

TABLE 7

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)

NINE MONTHS ENDED SEPTEMBER 30, 2022

(Amounts in Thousands of New Taiwan Dollars)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount				Balance as of September 30, 2022							Net Income (Loss) of the Investee			Recognized Gain (Loss) (Notes 1, 2 and 3)			Note
				September 30, 2022		December 31, 2021		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	$	1,676,000		$	492,074		$	132,434			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		3,833,150			15,352			6,730			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		737,330			35,328			35,328			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		1,219,777			195,109			195,155			Subsidiary (Note 5)
	Chunghwa System Integration Co., Ltd.	Taiwan	Providing system integration services and telecommunications equipment		838,506		838,506		60,000		100		721,992			15,748			30,890			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		1,841,672			604,304			347,583			Subsidiary (Note 5)
	Chunghwa Investment Co., Ltd.	Taiwan	Investment		639,559		639,559		68,085		89		3,141,925			185,260			164,980			Subsidiary (Note 5)
	Prime Asia Investments Group Ltd. (B.V.I.)	British Virgin Islands	Investment		385,274		385,274		1		100		168,235			9,991			9,991			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		717,890			432,420			416,562			Subsidiary (Note 5)
	CHYP Multimedia Marketing & Communications Co., Ltd.	Taiwan	Digital information supply services and advertisement services		150,000		150,000		15,000		100		197,188			15,345			15,845			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		104,503			(2,095	)		(2,095	)		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		593,014			56,293			56,584			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		73		383,270			155,018			112,058			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		109,140			8,089			8,089			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		153,816			37,346			20,929			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		144,825			30,595			22,946			Subsidiary (Note 5)
	Smartfun Digital Co., Ltd.	Taiwan	Providing diversified family education digital services		65,000		65,000		6,500		65		78,381			14,424			9,006			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		111,148			21,546			21,546			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		51		(8,173	)		(5,808	)		(3,265	)		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		590,272			95,780			61,733			Subsidiary (Note 5)
	Viettel-CHT Co., Ltd.	Vietnam	IDC services		288,327		288,327		—		30		510,379			269,252			80,791			Associate

(Continued)

- 90 -

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)

NINE MONTHS ENDED SEPTEMBER 30, 2022

(Amounts in Thousands of New Taiwan Dollars)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount				Balance as of September 30, 2022						Net Income (Loss) of the Investee			Recognized Gain (Loss) (Notes 1, 2 and 3)			Note
				September 30, 2022		December 31, 2021		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	$	271,400	$	117,043		$	59,300		Associate
	KKBOX Taiwan Co., Ltd.	Taiwan	Providing of music on-line, software, electronic information, and advertisement services		67,025		67,025		4,438		30		170,055		27,253			8,176		Associate
	So-net Entertainment Taiwan Limited	Taiwan	Online service and sale of computer hardware		120,008		120,008		9,429		30		231,136		45,207			13,562		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		9,557		23		267,235		61,696			14,321		Associate
	Taiwan International Ports Logistics Corporation	Taiwan	Import and export storage, logistic warehouse, and ocean shipping service		80,000		80,000		8,000		27		92,303		83,171			22,182		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		296,821		171,699			85,850		Associate
	Cornerstone Ventures Co., Ltd.	Taiwan	Investment, venture capital, investment advisor, management consultant and other consultancy service		4,900		4,900		490		49		6,569		(40	)		(20	)	Associate
	Next Commercial Bank Co., Ltd.	Taiwan	Online banking business		4,190,000		4,190,000		419,000		42		3,308,099		(666,385	)		(274,580	)	Associate
	Chunghwa SEA Holdings	Taiwan	Investment business		10,200		10,200		1,020		51		9,805		(250	)		(128	)	Joint venture
	WiAdvance Technology Corporation	Taiwan	Software solution integration		273,800		273,800		3,700		20		237,984		(51,260	)		(15,153	)	Associate
Senao International Co., Ltd.	Senao Networks, Inc.	Taiwan	Telecommunication facilities manufactures and sales		202,758		202,758		16,579		34		1,287,069		739,902			250,033		Associate
	Senao International (Samoa) Holding Ltd.	Samoa Islands	International investment		2,046,143		2,046,143		31,875		100		37,795		1			1		Subsidiary (Note 5)
	Youth Co., Ltd.	Taiwan	Sale of information and communication technologies products		427,850		427,850		14,752		96		189,481		(616	)		(6,945	)	Subsidiary (Note 5)
	Aval Technologies Co., Ltd.	Taiwan	Sale of information and communication technologies products		89,550		89,550		11,660		100		125,622		6,009			6,008		Subsidiary (Note 5)
	Senyoung Insurance Agent Co., Ltd.	Taiwan	Property and liability insurance agency		59,000		59,000		5,900		100		91,734		24,361			24,367		Subsidiary (Note 5)
CHIEF Telecom Inc.	Unigate Telecom Inc.	Taiwan	Telecommunications and internet service		2,000		2,000		200		100		1,195		116			116		Subsidiary (Note 5)
	Chief International Corp.	Samoa Islands	Telecommunications and internet service		6,068		6,068		200		100		102,579		5,976			5,976		Subsidiary (Note 5)
Chunghwa Telecom Singapore Pte., Ltd.	ST-2 Satellite Ventures Pte., Ltd.	Singapore	Operation of ST-2 telecommunications satellite		21,309		409,061		943		38		337,008		421,832			160,846		Associate
	CHT Infinity Singapore Pte. Ltd.	Singapore	Investment business		55,720		55,720		2,000		40		62,678		(815	)		(326	)	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		2,641,101		592,632			202,972		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		90,266		604,304			17,783		Associate (Note 5)
	Senao International Co., Ltd.	Taiwan	Selling and maintaining mobile phones and its peripheral products		49,731		49,731		1,001		—		44,464		492,074			1,907		Associate (Note 5)
	AgriTalk Technology Inc.	Taiwan	Providing smart agricultural solutions, scientific agricultural product, biological inhibitor, and biochips		33,000		33,000		1,650		17		16,824		(8,247	)		(813	)	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		39,302		(48,787	)		(4,788	)	Associate
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		98,971		1,122			1,122		Subsidiary (Note 5)

(Continued)

- 91 -

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)

NINE MONTHS ENDED SEPTEMBER 30, 2022

(Amounts in Thousands of New Taiwan Dollars)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount				Balance as of September 30, 2022						Net Income (Loss) of the Investee			Recognized Gain (Loss) (Notes 1, 2 and 3)			Note
				September 30, 2022		December 31, 2021		Shares (Thousands)		Percentage of Ownership (%)		Carrying Value (Note 3)
	CHPT Japan Co., Ltd.	Japan	Related services of electronic parts, machinery processed products and printed circuit board	$	2,008	$	2,008		1		100	$	2,123	$	54		$	54		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		170,465		10,504			11,042		Subsidiary (Note 5)
	TestPro Investment Co., Ltd.	Taiwan	Investment		135,000		—		13,500		100		105,507		(9,411	)		(27,344	)	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		—		10,850		54		97,069		(17,109	)		(9,282	)	Subsidiary (Note 5)
Prime Asia Investments Group, Ltd. (B.V.I.)	Chunghwa Hsingta Co., Ltd.	Hong Kong	Investment		375,274		375,274		1		100		168,235		9,991			9,991		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		35,360		—			—		Subsidiary (Note 5)
Youth Co., Ltd.	ISPOT Co., Ltd.	Taiwan	Sale of information and communication technologies products		53,021		53,021		—		100		13,018		1,259			1,115		Subsidiary (Note 5)
	Youyi Co., Ltd.	Taiwan	Maintenance of information and communication technologies products		21,354		21,354		—		100		16,701		(862	)		(923	)	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		43,263		3,823			3,823		Subsidiary (Note 5)
Senyoung Insurance Agent Co., Ltd.	Senaolife Insurance Agent Co., Ltd.	Taiwan	Life insurance services		29,500		29,500		2,950		100		22,176		(1,313	)		(1,313	)	Subsidiary (Note 5)
CHYP Multimedia Marketing & Communications Co., Ltd	Click Force Marketing Company	Taiwan	Advertisement services		44,607		44,607		1,401		49		40,147		13,286			6,295		Associate
International Integrated Systems, Inc.	Infoexplorer International Co., Ltd.	Samoa	Investment		24,806		24,806		795		100		29,837		(76	)		(76	)	Subsidiary (Note 5)
	IISI Investment Co., Ltd.	Mauritius	Investment		—		81,302		—		—		—		(100	)		(100	)	Subsidiary (Notes 5 and 6)
	Unitronics Technology Corp.	Taiwan	Development and maintenance of information system		55,569		55,569		5,065		99.96		79,558		6,316			6,313		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		29,830		(76	)		(76	)	Subsidiary (Note 5)
IISI Investment Co., Ltd.	Leading Tech Co., Ltd.	Mauritius	Investment		—		65,374		—		—		—		6			6		Subsidiary (Notes 5 and 6)
Leading Tech Co., Ltd.	Leading Systems Co., Ltd.	Mauritius	Investment		—		100,693		—		—		—		6			6		Subsidiary (Notes 5 and 6)
CHT Security Co., Ltd.	Baohwa Trust Co., Ltd.	Taiwan	VR integration and AIoT security services		20,000		—		2,000		40		15,362		(11,596	)		(4,638	)	Associate

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 8.

Note 5: The amount was eliminated upon consolidation.

Note 6: IICL , LTCL and LSCL completed the cancellation of registration in September 2022.

(Concluded)

- 92 -

TABLE 8

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

INVESTMENTS IN MAINLAND CHINA

NINE MONTHS ENDED SEPTEMBER 30, 2022

(Amounts in Thousands of New Taiwan Dollars)

		Total Amount of Paid-in Capital		Investment Type (Note 1)	Accumulated Outflow of Investment from Taiwan as of January 1, 2022						Accumulated Outflow of Investment from Taiwan as of September 30, 2022		Net Income (Loss) of the Investee			% Ownership of Direct or Indirect Investment		Investment Gain (Loss) (Note 2)			Carrying Value as of September 30, 2022		Accumulated Inward Remittance of Earnings as of September 30, 2022
Investee	Main Businesses and Products						Investment Flows																		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 8   and 12
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		(4,731	)		100		(4,731	)		25,403		—	Notes 10   and 12
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 12
Shanghai Taihua Electronic Technology Limited	Design of printed circuit board and related consultation service		51,233	2		51,233		—		—		51,233		(325	)		100		(325	)		8,857		—	Note 12
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		10,836			100		10,836			165,070		—	Note 12
Shanghai Chief Telecom Co., Ltd.	Telecommunications and internet service		10,150	1		4,973		—		—		4,973		714			49		350			14,594		—	Note 12
International Integrated Systems Inc. (Shanghai)	Development and maintenance of information system		48,753	2		39,923		—		—		39,923		—			100		—			—		—	Notes 11   and 12

(Continued)

- 93 -

Investee	Accumulated Investment in Mainland China as of September 30, 2022		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	$	3,679,064
Chunghwa Telecom (China) Co., Ltd. (Note 4)		177,176		177,176		230,444,284
Jiangsu Zhenghua Information Technology Company, LLC (Note 4)		142,057		142,057		230,444,284
Chunghwa Precision Test Tech Co., Ltd and its subsidiaries (Note 5)		170,432		216,185		4,675,863
Shanghai Chief Telecom Co., Ltd. (Note 6)		4,973		4,973		1,851,271
IISI and its subsidiaries (Note 7)		39,923		39,923		656,066

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: IISI and its subsidiaries were calculated based on the consolidated net assets value of IISI.

Note 8: Senao International Trading (Shanghai) Co., Ltd. completed its liquidation in April 2021.

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

Note 10: Chunghwa Telecom (China) Co., Ltd. was approved to end and dissolve its business in August 2020. The liquidation of Chunghwa Telecom (China) Co., Ltd. is still in process.

Note 11: International Integrated Systems Inc. (Shanghai) completed its liquidation in August 2021.

Note 12: The amount was eliminated upon consolidation.

(Concluded)

- 94 -

TABLE 9

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT TRANSACTIONS

NINE MONTHS ENDED SEPTEMBER 30, 2022

(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)
2022	0	Chunghwa Telecom Co., Ltd.	Senao International Co., Ltd.	a	Accounts receivable	$	543,101		—		—
					Accrued custodial receipts		154,111		—		—
					Accounts payable		1,043,944		—		—
					Amounts collected for others		292,515		—		—
					Revenues		2,250,032		—		1
					Operating costs and expenses		616,840		—		—
					Inventories		55,825		—		—
			CHIEF Telecom Inc.	a	Accounts receivable		86,165		—		—
					Revenues		360,339		—		—
			Chunghwa System Integration Co., Ltd.	a	Accounts payable		399,887		—		—
					Operating costs and expenses		992,266		—		1
					Inventories		1,757		—		—
			Chunghwa Telecom Global Inc.	a	Accounts receivable		24,031		—		—
					Accounts payable		38,654		—		—
					Revenues		102,678		—		—
					Operating costs and expenses		239,210		—		—
			Donghwa Telecom Co., Ltd.	a	Accounts receivable		47,619		—		—
					Accounts payable		185,361		—		—
					Revenues		135,029		—		—
					Operating costs and expenses		405,356		—		—
			Honghwa International Co., Ltd.	a	Accounts payable		874,521		—		—
					Operating costs and expenses		4,651,229		—		3
					Inventories		86,249		—		—
			CHT Security Co., Ltd.	a	Accounts payable		46,269		—		—
					Operating costs and expenses		208,343		—		—
					Inventories		43,421		—		—
			International Integrated Systems, Inc.	a	Accounts payable		165,452		—		—
					Operating costs and expenses		517,630		—		—
					Inventories		13,124		—		—
			Aval Technologies Co., Ltd.	a	Accounts payable		120		—		—
					Operating costs and expenses		254,473		—		—
			Senyoung Insurance Agent Co., Ltd.	a	Accounts receivable		42,405		—		—
					Revenues		101,396		—		—

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”.

- 95 -

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 September 30, 2022, while revenues, costs and expenses are shown as a percentage to consolidated revenues for the nine months ended September 30, 2022.

Note 5: The amount was eliminated upon consolidation.

- 96 -

TABLE 10

CHUNGHWA TELECOM CO., LTD.

INFORMATION OF MAJOR STOCKHOLDERS

SEPTEMBER 30, 2022

	Shares
Name of Major Stockholders	Number of Shares		Percentage of Ownership (%)
Ministry of Transportation and Communications		2,737,718,976		35.29
Shin Kong Life Insurance Co., Ltd.		402,138,184		5.18

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.

- 97 -

EX-99.3

Exhibit 99.3

Chunghwa Telecom Co., Ltd. and Subsidiaries

Consolidated Financial Statements for the

Nine Months Ended September 30, 2022 and 2021

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Millions of New Taiwan Dollars)

	September 30, 2022 (Unaudited)				December 31, 2021 (Audited)				September 30, 2021 (Unaudited)
ASSETS	Amount		%		Amount		%		Amount		%
CURRENT ASSETS
Cash and cash equivalents	$	32,898		7	$	39,779		8	$	23,577		5
Financial assets at fair value through profit or loss		4		—		3		—		2		—
Hedging financial assets		13		—		—		—		—		—
Contract assets		5,702		1		5,554		1		5,340		1
Trade notes and accounts receivable, net		22,279		4		23,947		5		21,382		4
Receivables from related parties		107		—		41		—		66		—
Inventories		12,337		2		11,327		2		13,080		3
Prepayments		5,110		1		2,330		—		5,078		1
Other current monetary assets		4,362		1		5,061		1		5,242		1
Other current assets		4,008		1		2,979		1		3,094		1
Total current assets		86,820		17		91,021		18		76,861		16
NONCURRENT ASSETS
Financial assets at fair value through profit or loss		1,051		—		909		—		1,231		—
Financial assets at fair value through other comprehensive income		3,484		1		3,616		1		3,335		1
Investments accounted for using equity method		6,999		1		7,137		1		7,044		2
Contract assets		2,967		1		2,608		1		2,376		—
Property, plant and equipment		286,301		57		289,100		56		284,621		57
Right-of-use assets		11,234		2		11,051		2		10,492		2
Investment properties		9,707		2		9,663		2		9,590		2
Intangible assets		80,794		16		83,945		16		85,490		17
Deferred income tax assets		2,616		1		2,785		1		3,015		1
Incremental costs of obtaining contracts		967		—		988		—		972		—
Net defined benefit assets		3,901		1		3,391		1		3,929		1
Prepayments		1,923		—		1,798		—		1,892		—
Other noncurrent assets		4,625		1		4,863		1		4,841		1
Total noncurrent assets		416,569		83		421,854		82		418,828		84
TOTAL	$	503,389		100	$	512,875		100	$	495,689		100

	September 30, 2022 (Unaudited)					December 31, 2021 (Audited)					September 30, 2021 (Unaudited)
LIABILITIES AND EQUITY	Amount			%		Amount			%		Amount			%
CURRENT LIABILITIES
Short-term loans	$	592			—	$	65			—	$	66			—
Financial liabilities at fair value through profit or loss		—			—		6			—		—			—
Hedging financial liabilities		—			—		8			—		9			—
Contract liabilities		13,612			3		12,234			2		13,905			3
Trade notes and accounts payable		13,161			3		18,063			4		13,696			3
Payables to related parties		476			—		392			—		485			—
Current tax liabilities		4,734			1		6,530			1		4,266			1
Lease liabilities		3,216			1		3,211			1		3,243			—
Other payables		20,896			4		24,437			5		23,670			5
Provisions		226			—		285			—		258			—
Other current liabilities		1,000			—		998			—		921			—
Total current liabilities		57,913			12		66,229			13		60,519			12
NONCURRENT LIABILITIES
Long-term loans		1,600			—		1,600			—		1,600			—
Bonds payable		30,476			6		26,977			6		26,976			6
Contract liabilities		7,124			2		6,840			1		6,819			1
Deferred income taxes liabilities		2,248			—		2,189			—		2,188			—
Provisions		157			—		142			—		133			—
Lease liabilities		7,346			2		7,062			1		5,949			1
Customers’ deposits		5,076			1		5,336			1		4,827			1
Net defined benefit liabilities		2,268			—		2,288			1		3,435			1
Other noncurrent liabilities		6,835			1		5,082			1		3,081			1
Total noncurrent liabilities		63,130			12		57,516			11		55,008			11
Total liabilities		121,043			24		123,745			24		115,527			23
EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE PARENT
Common stocks		77,574			15		77,574			15		77,574			16
Additional paid-in capital		149,827			30		149,810			29		149,808			30
Retained earnings
Legal reserve		77,574			15		77,574			15		77,574			16
Special reserve		3,084			1		2,676			1		2,676			1
Unappropriated earnings		62,471			12		70,157			14		61,689			12
Total retained earnings		143,129			28		150,407			30		141,939			29
Others		(182	)		—		(408	)		—		(483	)		—
Total equity attributable to stockholders of the parent		370,348			73		377,383			74		368,838			75
NONCONTROLLING INTERESTS		11,998			3		11,747			2		11,324			2
Total equity		382,346			76		389,130			76		380,162			77
TOTAL	$	503,389			100	$	512,875			100	$	495,689			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 September 30										Nine Months Ended September 30
	2022					2021					2022					2021
	Amount			%		Amount			%		Amount			%		Amount			%
REVENUES	$	53,508			100	$	50,886			100	$	157,238			100	$	150,588			100
OPERATING COSTS		33,174			62		32,046			63		97,211			62		94,997			63
GROSS PROFIT		20,334			38		18,840			37		60,027			38		55,591			37
OPERATING EXPENSES
Marketing		5,605			10		5,134			10		16,642			11		15,063			9
General and administrative		1,541			3		1,222			2		4,631			3		3,805			3
Research and development		983			2		936			2		2,785			1		2,704			2
Expected credit loss		21			—		101			—		95			—		188			—
Total operating expenses		8,150			15		7,393			14		24,153			15		21,760			14
OTHER INCOME AND EXPENSES		(2	)		—		(5	)		—		(6	)		—		(2	)		—
INCOME FROM OPERATIONS		12,182			23		11,442			23		35,868			23		33,829			23
NON-OPERATING INCOME AND EXPENSES
Interest income		58			—		28			—		146			—		74			—
Other income		69			—		211			—		323			—		302			—
Other gains and losses		(118	)		—		411			1		(165	)		—		670			—
Interest expenses		(69	)		—		(56	)		—		(190	)		—		(162	)		—
Share of profits of associates and joint ventures accounted for using equity method		79			—		63			—		395			—		179			—
Total non-operating income and expenses		19			—		657			1		509			—		1,063			—
INCOME BEFORE INCOME TAX		12,201			23		12,099			24		36,377			23		34,892			23
INCOME TAX EXPENSE		2,942			5		2,876			6		6,771			4		6,446			4
NET INCOME		9,259			18		9,223			18		29,606			19		28,446			19
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		(4	)		—		(241	)		—		(128	)		—		(1,251	)		(1	)
Gain or loss on hedging instruments subject to basis adjustment		20			—		5			—		21			—		(11	)		—
Share of other comprehensive income (loss) of associates and joint ventures		2			—		—			—		4			—		1			—
		18			—		(236	)		—		(103	)		—		(1,261	)		(1	)
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising from the translation of the foreign operations		187			—		(16	)		—		339			—		(64	)		—

(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 September 30									Nine Months Ended September 30
	2022				2021					2022				2021
	Amount		%		Amount			%		Amount		%		Amount			%
Share of other comprehensive income (loss) of associates and joint ventures	$	4		—	$	—			—	$	5		—	$	(1	)		—
		191		—		(16	)		—		344		—		(65	)		—
Total other comprehensive income (loss), net of income tax		209		—		(252	)		—		241		—		(1,326	)		(1	)
TOTAL COMPREHENSIVE INCOME	$	9,468		18	$	8,971			18	$	29,847		19	$	27,120			18
NET INCOME ATTRIBUTABLE TO
Stockholders of the parent	$	8,865		17	$	8,876			17	$	28,466		18	$	27,429			18
Noncontrolling interests		394		1		347			1		1,140		1		1,017			1
	$	9,259		18	$	9,223			18	$	29,606		19	$	28,446			19
COMPREHENSIVE INCOME ATTRIBUTABLE TO
Stockholders of the parent	$	9,060		17	$	8,629			17	$	28,694		18	$	26,109			17
Noncontrolling interests		408		1		342			1		1,153		1		1,011			1
	$	9,468		18	$	8,971			18	$	29,847		19	$	27,120			18
EARNINGS PER SHARE
Basic	$	1.14			$	1.14				$	3.67			$	3.54
Diluted	$	1.14			$	1.14				$	3.67			$	3.53

(Concluded)

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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 on						Attributable to
			Additional				Special		Unappropriated			Total Retained			the Foreign			Assets at			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, 2021	$	77,574	$	149,790	$	77,574	$	2,676	$	67,574		$	147,824		$	(315	)	$	1,240		$	2		$	927		$	376,115		$	11,158		$	387,273
Appropriation of 2020 earnings
Cash dividends distributed by Chunghwa		—		—		—		—		(33,404	)		(33,404	)		—			—			—			—			(33,404	)		—			(33,404	)
Cash dividends distributed by subsidiaries		—		—		—		—		—			—			—			—			—			—			—			(896	)		(896	)
Unclaimed dividend		—		2		—		—		—			—			—			—			—			—			2			—			2
Change in additional paid-in capital from investments in associates and joint ventures accounted for using equity method		—		—		—		—		—			—			—			—			—			—			—			—			—
Net income for the nine months ended September 30, 2021		—		—		—		—		27,429			27,429			—			—			—			—			27,429			1,017			28,446
Other comprehensive income (loss) for the nine months ended September 30, 2021		—		—		—		—		1			1			(65	)		(1,245	)		(11	)		(1,321	)		(1,320	)		(6	)		(1,326	)
Total comprehensive income (loss) for the nine months ended September 30, 2021		—		—		—		—		27,430			27,430			(65	)		(1,245	)		(11	)		(1,321	)		26,109			1,011			27,120
Disposal of investments in equity instruments at fair value through other comprehensive income		—		—		—		—		89			89			—			(89	)		—			(89	)		—			—			—
Share-based payment transactions of subsidiaries		—		16		—		—		—			—			—			—			—			—			16			51			67
BALANCE, SEPTEMBER 30, 2021	$	77,574	$	149,808	$	77,574	$	2,676	$	61,689		$	141,939		$	(380	)	$	(94	)	$	(9	)	$	(483	)	$	368,838		$	11,324		$	380,162
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
Appropriation of 2021 earnings
Special reserve		—		—		—		408		(408	)		—			—			—			—			—			—			—			—
Cash dividends distributed by Chunghwa		—		—		—				(35,746	)		(35,746	)		—			—			—			—			(35,746	)		—			(35,746	)
Cash dividends distributed by subsidiaries		—		—		—		—		—			—			—			—			—			—			—			(1,053	)		(1,053	)
Unclaimed dividend		—		2		—		—		—			—			—			—			—			—			2			—			2
Change in additional paid-in capital from investments in associates and joint ventures accounted for using equity method		—		—		—		—		—			—			—			—			—			—			—			—			—
Net income for the nine months ended September 30, 2022		—		—		—		—		28,466			28,466			—			—			—			—			28,466			1,140			29,606
Other comprehensive income (loss) for the nine months ended September 30, 2022		—		—		—		—		2			2			314			(109	)		21			226			228			13			241
Total comprehensive income (loss) for the nine months ended September 30, 2022		—		—		—		—		28,468			28,468			314			(109	)		21			226			28,694			1,153			29,847
Share-based payment transactions of subsidiaries		—		15		—		—		—			—			—			—			—			—			15			59			74
Net increase in noncontrolling interests		—		—		—		—		—			—			—			—			—			—			—			92			92
BALANCE, SEPTEMBER 30, 2022	$	77,574	$	149,827	$	77,574	$	3,084	$	62,471		$	143,129		$	(78	)	$	(117	)	$	13		$	(182	)	$	370,348		$	11,998		$	382,346

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CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Millions of New Taiwan Dollars)

(Unaudited)

	Nine Months Ended September 30
	2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$	36,377		$	34,892
Adjustments to reconcile income before income tax to net cash provided by operating activities:
Depreciation		24,583			23,748
Amortization		4,962			4,924
Amortization of incremental costs of obtaining contracts		628			602
Expected credit loss		95			188
Interest expense		190			162
Interest income		(146	)		(74	)
Dividend income		(157	)		(139	)
Compensation cost of share-based payment transactions		12			14
Share of profits of associates and joint ventures accounted for using equity method		(395	)		(179	)
Loss on disposal of property, plant and equipment		6			2
Gain on disposal of financial instruments		(1	)		—
Loss (gain) on disposal of investments accounted for using equity method		1			(3	)
Provision for impairment loss and obsolescence of inventory		72			83
Valuation loss (gain) on financial assets and liabilities at fair value through profit or loss, net		141			(527	)
Others		182			(128	)
Changes in operating assets and liabilities:
Decrease (increase) in:
Contract assets		(507	)		111
Trade notes and accounts receivable		1,602			1,127
Receivables from related parties		(66	)		164
Inventories		(1,082	)		(754	)
Prepayments		(2,905	)		(2,450	)
Other current monetary assets		(464	)		(408	)
Other current assets		(1,029	)		(745	)
Incremental cost of obtaining contracts		(607	)		(574	)
Increase (decrease) in:
Contract liabilities		1,662			(1	)
Trade notes and accounts payable		(4,900	)		(1,896	)
Payables to related parties		84			(161	)
Other payables		(2,056	)		(1,178	)
Provisions		(44	)		(23	)

(Continued)

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CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Millions of New Taiwan Dollars)

(Unaudited)

	Nine Months Ended September 30
	2022			2021
Other current liabilities	$	39		$	(91	)
Net defined benefit plans		(530	)		(537	)
Cash generated from operations		55,747			56,149
Interests paid		(209	)		(171	)
Income taxes paid		(8,338	)		(7,999	)
Net cash provided by operating activities		47,200			47,979
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through other comprehensive income		(3	)		(103	)
Proceeds from disposal of financial assets at fair value through other comprehensive income		—			2,906
Proceeds from capital reduction of financial assets at fair value through other comprehensive income		7			—
Acquisition of financial assets at fair value through profit or loss		(326	)		(44	)
Proceeds from disposal of financial assets at fair value through profit or loss		15			25
Proceeds from capital reduction of financial assets at fair value through profit or loss		66			—
Acquisition of time deposits and negotiable certificates of deposit with maturities of more than three months		(5,136	)		(16,221	)
Proceeds from disposal of time deposits and negotiable certificates of deposit with maturities of more than three months		6,466			17,252
Acquisition of investments accounted for using equity method		(20	)		(330	)
Proceeds from disposal of investments accounted for using equity method		—			9
Proceeds from capital reduction of investments accounted for using equity method		340			—
Acquisition of property, plant and equipment		(20,219	)		(23,031	)
Proceeds from disposal of property, plant and equipment		5			20
Acquisition of intangible assets		(1,810	)		(128	)
Acquisition of investment properties		(18	)		—
Decrease in other noncurrent assets		205			346
Interests received		144			75
Dividends received		271			335
Net cash used in investing activities		(20,013	)		(18,889	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term loans		935			179
Repayments of short-term loans		(408	)		(180	)
Proceeds from short-term bills payable		—			5,000
Repayments of short-term bills payable		—			(12,000	)

(Continued)

- 6 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Millions of New Taiwan Dollars)

(Unaudited)

	Nine Months Ended September 30
	2022			2021
Proceeds from issuance of bonds	$	3,500		$	7,000
Payments for transaction costs attributable to the issuance of bonds		(4	)		(8	)
Decrease in customers’ deposits		(298	)		(31	)
Payments for the principal of lease liabilities		(2,993	)		(2,834	)
Increase in other noncurrent liabilities		1,753			1,191
Cash dividends paid		(35,746	)		(33,404	)
Cash dividends distributed to noncontrolling interests		(1,048	)		(893	)
Change in other noncontrolling interests		154			53
Unclaimed dividend		2			2
Net cash used in financing activities		(34,153	)		(35,925	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		85			(8	)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(6,881	)		(6,843	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		39,779			30,420
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	32,898		$	23,577

(Concluded)

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CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

NOTE TO CONSOLIDATED FINANCIAL STATEMENTS

NINE MONTHS ENDED SEPTEMBER 30, 2022 and 2021

(Unaudited)

STATEMENT OF COMPLIANCE

The Company has prepared its consolidated balance sheets as of September 30, 2022 and 2021, the related consolidated statements of comprehensive income for the three months ended September 30, 2022 and 2021, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the nine months ended September 30, 2022 and 2021 in accordance with International Accounting Standards No. 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.

- 8 -