Chunghwa Telecom (CHT) 6-K Current report (foreign)

Exhibit 99.3

Chunghwa Telecom Co., Ltd. and

Subsidiaries

Consolidated Financial Statements for the

Six Months Ended June 30, 2015 and 2014

- 1 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Millions of New Taiwan Dollars)

	June 30, 2015 (Unaudited)				December 31, 2014 (Audited)				June 30, 2014 (Unaudited)
	Amount		%		Amount		%		Amount		%
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	34,285		7	$	23,560		5	$	28,141		6
Financial assets at fair value through profit or loss		1		—		1		—		—		—
Available-for-sale financial assets		—		—		—		—		—		—
Held-to-maturity financial assets		2,903		1		3,457		1		4,467		1
Hedging derivative assets		—		—		—		—		—		—
Trade notes and accounts receivable, net		27,552		6		26,228		6		23,610		5
Accounts receivable from related parties		22		—		81		—		70		—
Inventories		6,713		1		7,097		2		8,194		2
Prepayments		5,791		1		2,444		—		5,595		2
Other current monetary assets		14,879		3		3,325		1		5,182		1
Other current assets		2,494		1		3,219		1		5,267		1
Total current assets		94,640		20		69,412		16		80,526		18
NONCURRENT ASSETS
Available-for-sale financial assets		5,942		1		6,281		1		5,215		1
Held-to-maturity financial assets		3,799		1		4,028		1		5,715		1
Investments accounted for using equity method		2,678		1		2,750		1		2,328		—
Property, plant and equipment		295,149		64		302,650		68		298,533		66
Investment properties		7,666		2		7,621		2		8,010		2
Intangible assets		41,412		9		42,825		9		43,763		10
Deferred income tax assets		1,908		—		1,826		—		1,778		—
Prepayments		3,484		1		3,504		1		3,410		1
Other noncurrent assets		5,252		1		5,601		1		5,212		1
Total noncurrent assets		367,290		80		377,086		84		373,964		82
TOTAL	$	461,930		100	$	446,498		100	$	454,490		100

(Continued)

- 2 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Millions of New Taiwan Dollars)

	June 30, 2015 (Unaudited)				December 31, 2014 (Audited)				June 30, 2014 (Unaudited)
	Amount		%		Amount		%		Amount			%
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term loans	$	860		—	$	564		—	$	1,085			—
Financial liabilities at fair value through profit or loss		2		—		—		—		—			—
Hedging derivative liabilities		—		—		—		—		—			—
Trade notes and accounts payable		15,318		3		18,519		4		12,387			3
Payables to related parties		432		—		408		—		640			—
Current tax liabilities		6,644		2		6,982		2		6,368			1
Dividends payable		37,673		8		—		—		18,526			4
Other payables		20,182		5		24,335		6		38,862			9
Provisions		253		—		179		—		119			—
Advance receipts		9,616		2		9,913		2		9,060			2
Current portion of long-term loans		3		—		—		—		300			—
Other current liabilities		1,489		—		1,619		—		1,607			—
Total current liabilities		92,472		20		62,519		14		88,954			19
NONCURRENT LIABILITIES
Long-term loans		1,797		—		1,900		—		1,748			1
Deferred income taxes liabilities		108		—		132		—		111			—
Provisions		49		—		93		—		121			—
Customers’ deposits		4,655		1		4,759		1		4,775			1
Net defined benefit liabilities		6,671		2		6,470		2		5,679			1
Deferred revenue		3,572		1		3,398		1		3,566			1
Other noncurrent liabilities		1,983		—		1,515		—		1,329			—
Total noncurrent liabilities		18,835		4		18,267		4		17,329			4
Total liabilities		111,307		24		80,786		18		106,283			23
EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE PARENT
Common stock		77,574		17		77,574		18		77,574			17
Additional paid-in capital		146,738		32		146,720		33		146,717			32
Retained earnings
Legal reserve		77,574		17		76,893		17		76,893			17
Special reserve		2,676		—		2,820		1		2,820			1
Unappropriated earnings		40,640		9		55,895		12		40,200			9
Total retained earnings		120,890		26		135,608		30		119,913			27
Other adjustments		478		—		886		—		(412	)		—
Total equity attributable to stockholders of the parent		345,680		75		360,788		81		343,792			76
NONCONTROLLING INTERESTS		4,943		1		4,924		1		4,415			1
Total equity		350,623		76		365,712		82		348,207			77
TOTAL	$	461,930		100	$	446,498		100	$	454,490			100

(Concluded)

- 3 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

(Unaudited)

	For the Three Months Ended June 30											For the Six Months Ended June 30
	2015						2014					2015					2014
	Amount			%			Amount			%		Amount			%		Amount			%
REVENUES	$	56,920			100		$	55,784			100	$	113,393			100	$	110,834			100
OPERATING COSTS		35,711			63			35,037			63		72,407			64		70,037			63
GROSS PROFIT		21,209			37			20,747			37		40,986			36		40,797			37
OPERATING EXPENSES
Marketing		6,026			11			6,428			11		12,009			11		12,596			11
General and administrative		1,105			2			1,084			2		2,250			2		2,167			2
Research and development		866			1			897			2		1,701			1		1,791			2
Total operating expenses		7,997			14			8,409			15		15,960			14		16,554			15
OTHER INCOME AND EXPENSES		(15	)		—			(11	)		—		(44	)		—		(20	)		—
INCOME FROM OPERATIONS		13,197			23			12,327			22		24,982			22		24,223			22
NON-OPERATING INCOME AND EXPENSES
Interest income		95			—			84			—		162			—		143			—
Other revenue		270			1			142			—		523			1		395			—
Other gains and losses		(196	)		—			23			—		(71	)		—		(10	)		—
Interest expenses		(6	)		—			(10	)		—		(15	)		—		(19	)		—
Share of the profit of associates and joint ventures accounted for using equity method		223			—			256			1		507			—		417			1
Total non-operating income and expenses		386			1			495			1		1,106			1		926			1
INCOME BEFORE INCOME TAX		13,583			24			12,822			23		26,088			23		25,149			23
INCOME TAX EXPENSE (BENEFIT)		(279	)		—			1,039			2		2,744			3		3,942			4
NET INCOME		13,862			24			11,783			21		23,344			20		21,207			19
OTHER COMPREHENSIVE INCOME (LOSS)
Items that will not be reclassified to profit or loss:
Share of remeasurements of defined benefit pension plans of associates		—			—			—			—		—			—		—			—
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising from the translation of the foreign operations		(56	)		—			(51	)		—		(85	)		—		(37	)		—
Unrealized gain (loss) on available-for-sale financial assets		(761	)		(1	)		26			—		(333	)		—		(234	)		—
Cash flow hedges		—			—			—			—		—			—		—			—
Share of exchange differences arising from the translation of the foreign operations of associates		(1	)		—			(32	)		—		—			—		(24	)		—
Income tax benefit (expense) relating to items that may be reclassified subsequently		(1	)		—			1			—		(4	)		—		2			—
		(819	)		(1	)		(56	)		—		(422	)		—		(293	)		—
Total other comprehensive loss, net	$	(819	)		(1	)	$	(56	)		—	$	(422	)		—	$	(293	)		—

(Continued)

- 4 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

(Unaudited)

	For the Three Months Ended June 30								For the Six Months Ended June 30
	2015				2014				2015				2014
	Amount		%		Amount		%		Amount		%		Amount		%
TOTAL COMPREHENSIVE INCOME	$	13,043		23	$	11,727		21	$	22,922		20	$	20,914		19
NET INCOME ATTRIBUTABLE TO
Stockholders of the parent	$	13,597		24	$	11,576		21	$	22,955		20	$	20,869		19
Noncontrolling interests		265		—		207		—		389		1		338		—
	$	13,862		24	$	11,783		21	$	23,344		21	$	21,207		19
COMPREHENSIVE INCOME ATTRIBUTABLE TO
Stockholders of the parent	$	12,787		23	$	11,536		21	$	22,547		20	$	20,601		19
Noncontrolling interests		256		—		191		—		375		—		313		—
	$	13,043		23	$	11,727		21	$	22,922		20	$	20,914		19
EARNINGS PER SHARE
Basic	$	1.75			$	1.49			$	2.96			$	2.69
Diluted	$	1.75			$	1.49			$	2.95			$	2.69

(Concluded)

- 5 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(In Millions of New Taiwan Dollars)

(Unaudited)

	Equity Attributable to Stockholders of the Parent
																	Other Adjustments
																	Exchange Differences Arising from the Translation of the Foreign			Unrealized Gain (Loss) on Available-for- sale Financial								Total Equity Attributable to Stockholders
						Retained Earnings
	Common		Additional			Legal Reserve		Special			Unappropriated			Total Retained									Cash Flow		Total Other						Noncontrolling			Total Equity
	Stock		Paid-in Capital					Reserve			Earnings			Earnings			Operations			Assets			Hedges		Adjustments			of the Parent			Interests
BALANCE, JANUARY 1, 2014	$	77,574	$	163,294		$	74,819	$	2,676		$	40,075		$	117,570		$	6		$	(150	)	$	—	$	(144	)	$	358,294		$	4,846		$	363,140
Appropriation of 2013 earnings
Legal reserve		—		—			2,074		—			(2,074	)		—			—			—			—		—			—			—			—
Special reserve		—		—			—		144			(144	)		—			—			—			—		—			—			—			—
Cash dividends distributed by Chunghwa		—		—			—		—			(18,526	)		(18,526	)		—			—			—		—			(18,526	)		—			(18,526	)
Cash dividends distributed by subsidiaries		—		—			—		—			—			—			—			—			—		—			—			(797	)		(797	)
Cash distributed from additional paid-in capital		—		(16,577	)		—		—			—			—			—			—			—		—			(16,577	)		—			(16,577	)
Net income for the six months ended June 30, 2014		—		—			—		—			20,869			20,869			—			—			—		—			20,869			338			21,207
Other comprehensive loss for the six months ended June 30, 2014		—		—			—		—			—			—			(44	)		(224	)		—		(268	)		(268	)		(25	)		(293	)
Total comprehensive income (loss) for the six months ended June 30, 2014		—		—			—		—			20,869			20,869			(44	)		(224	)		—		(268	)		20,601			313			20,914
Compensation cost of employee stock option of a subsidiary		—		—			—		—			—			—			—			—			—		—			—			53			53
BALANCE, JUNE 30, 2014	$	77,574	$	146,717		$	76,893	$	2,820		$	40,200		$	119,913		$	(38	)	$	(374	)	$	—	$	(412	)	$	343,792		$	4,415		$	348,207
BALANCE, JANUARY 1, 2015	$	77,574	$	146,720		$	76,893	$	2,820		$	55,895		$	135,608		$	146		$	740		$	—	$	886		$	360,788		$	4,924		$	365,712
Appropriation of 2014 earnings
Legal reserve		—		—			681		—			(681	)		—			—			—			—		—			—			—			—
Special reserve		—		—			—		(144	)		144			—			—			—			—		—			—			—			—
Cash dividends distributed by Chunghwa		—		—			—		—			(37,673	)		(37,673	)		—			—			—		—			(37,673	)		—			(37,673	)
Cash dividends distributed by subsidiaries		—		—			—		—			—			—			—			—			—		—			—			(354	)		(354	)
Reversal of special reserve recognized from land disposal		—		—			—		—			—			—			—			—			—		—			—			—			—
Partial disposal of interests in subsidiaries		—		27			—		—			—			—			—			—			—		—			27			18			45
Net income for the six months ended June 30, 2015		—		—			—		—			22,955			22,955			—			—			—		—			22,955			389			23,344
Other comprehensive loss for the six months ended June 30, 2015		—		—			—		—			—			—			(69	)		(339	)		—		(408	)		(408	)		(14	)		(422	)
Total comprehensive income (loss) for the six months ended June 30, 2015		—		—			—		—			22,955			22,955			(69	)		(339	)		—		(408	)		22,547			375			22,922
Compensation cost of employee stock option of a subsidiary		—		—			—		—			—			—			—			—			—		—			—			29			29
Purchase of treasury stocks by a subsidiary		—		(9	)		—		—			—			—			—			—			—		—			(9	)		(49	)		(58	)
BALANCE, JUNE 30, 2015	$	77,574	$	146,738		$	77,574	$	2,676		$	40,640		$	120,890		$	77		$	401		$	—	$	478		$	345,680		$	4,943		$	350,623

- 6 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Millions of New Taiwan Dollars)

(Unaudited)

	For the Six Months Ended June 30
	2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$	26,088		$	25,149
Adjustments to reconcile income before income tax to net cash provided by operating activities:
Depreciation		15,415			16,106
Amortization		1,539			785
Provision for doubtful accounts		190			148
Interest expenses		15			19
Interest income		(162	)		(143	)
Dividend income		(218	)		(77	)
Compensation cost of employee share options		29			53
Share of the profit of associates and joint ventures accounted for using equity method		(507	)		(417	)
Impairment loss on available-for-sale financial assets		26			9
Provision for inventory and obsolescence		91			248
Gain on disposal of financial instruments		—			(44	)
Loss on disposal of property, plant and equipment		44			20
Loss on disposal of intangible assets		—			—
Loss (gain) on disposal of investments accounted for using equity method		(5	)		4
Valuation loss on financial instruments at fair value through profit or loss, net		1			—
Loss (gain) on foreign exchange		(6	)		107
Changes in operating assets and liabilities:
Decrease (increase) in:
Financial assets held for trading		1			—
Trade notes and accounts receivable		(1,494	)		(855	)
Receivables from related parties		59			—
Inventories		292			(593	)
Other current monetary assets		(254	)		(274	)
Prepayments		(3,327	)		(3,172	)
Other current assets		726			(1,306	)
Increase (decrease) in:
Trade notes and accounts payable		(3,191	)		(3,256	)
Payables to related parties		24			83
Other payables		(2,234	)		(4,188	)
Provisions		31			(13	)
Advance receipts		(296	)		(403	)
Other current liabilities		(127	)		6
Deferred revenue		174			(135	)
Net defined benefit liabilities		201			195
Cash generated from operations		33,125			28,056

(Continued)

- 7 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Millions of New Taiwan Dollars)

(Unaudited)

	For the Six Months Ended June 30
	2015			2014
Interest paid	$	(16	)	$	(19	)
Income tax paid		(3,195	)		(4,005	)
Net cash provided by operating activities		29,914			24,032
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of available-for-sale financial assets		(22	)		(47	)
Proceeds from disposal of available-for-sale financial assets		1			84
Capital reduction of available-for-sale financial assets		—			44
Acquisition of time deposits and negotiable certificate of deposits with maturities of more than three months		(11,448	)		(411	)
Proceeds from disposal of time deposits and negotiable certificate of deposits with maturities of more than three months		554			435
Acquisition of held-to-maturity financial assets		(1,002	)		—
Proceeds from disposal of held-to-maturity financial assets		1,775			1,570
Acquisition of investments accounted for using equity method		(6	)		(133	)
Proceeds from disposal of investments accounted for using equity method		11			—
Acquisition of property, plant and equipment		(10,321	)		(13,090	)
Proceeds from disposal of property, plant and equipment		1			4
Acquisition of intangible assets		(127	)		(149	)
Decrease (increase) in other noncurrent assets		362			(341	)
Interest received		139			22
Cash dividends received		406			452
Net cash used in investing activities		(19,677	)		(11,560	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term loans		2,750			831
Repayment of short-term loans		(2,454	)		—
Proceeds from long-term loans		—			348
Repayment of long-term loans		(100	)		—
Customers’ deposits refunded		(107	)		(59	)
Increase (decrease) in other noncurrent liabilities		466			(5	)
Proceeds from disposal of interest in subsidiaries without losing control		45			—
Other change in noncontrolling interests		(35	)		—
Net cash provided by financing activities		565			1,115
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		(77	)		(31	)

(Continued)

- 8 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Millions of New Taiwan Dollars)

(Unaudited)

	For the Six Months Ended June 30
	2015		2014
NET INCREASE IN CASH AND CASH EQUIVALENTS	$	10,725	$	13,556
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		23,560		14,585
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	34,285	$	28,141

(Concluded)

- 9 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

NOTE TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2015 AND 2014

(Unaudited)

STATEMENT OF COMPLIANCE

The Company has prepared its consolidated balance sheets as of June 30, 2015 and 2014, the related consolidated statements of comprehensive income for the three months ended June 30, 2015 and 2014 and for the six months ended June 30, 2015 and 2014, as well as the consolidated statements of changes in equity and cash flows for the six months ended June 30, 2015 and 2014 in accordance with IAS 34 “Interim Financial Reporting” as issued by the International Accounting Standard Board. The consolidated financial statements are incomplete as they omit the related footnote disclosures as required under IFRSs.

- 10 -