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

Exhibit 99.3

Chunghwa Telecom Co., Ltd. and Subsidiaries

Consolidated Financial Statements for the

Nine Months Ended September 30, 2023 and 2022

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Millions of New Taiwan Dollars)

	September 30, 2023 (Unaudited)			December 31, 2022 (Audited)			September 30, 2022 (Unaudited)
ASSETS		Amount	%		Amount	%		Amount	%
CURRENT ASSETS
Cash and cash equivalents	$	32,005	6	$	50,193	10	$	32,898	7
Financial assets at fair value through profit or loss		—	—		4	—		4	—
Hedging financial assets		—	—		13	—		13	—
Contract assets		6,727	1		6,056	1		5,702	1
Trade notes and accounts receivable, net		23,515	5		24,672	5		22,279	4
Receivables from related parties		111	—		75	—		107	—
Inventories		12,364	2		11,316	2		12,337	2
Prepayments		5,556	1		2,398	—		5,110	1
Other current monetary assets		12,327	2		3,619	1		4,362	1
Incremental costs of obtaining contracts		95	—		—	—		—	—
Other current assets		4,205	1		3,555	1		4,008	1
Total current assets		96,905	18		101,901	20		86,820	17
NONCURRENT ASSETS
Financial assets at fair value through profit or loss		1,052	—		1,020	—		1,051	—
Financial assets at fair value through other comprehensive income		4,054	1		3,491	1		3,484	1
Investments accounted for using equity method		7,018	1		6,949	1		6,999	1
Contract assets		3,526	1		3,137	1		2,967	1
Property, plant and equipment		287,208	56		291,528	56		286,301	57
Right-of-use assets		11,187	2		11,103	2		11,234	2
Investment properties		10,147	2		9,804	2		9,707	2
Intangible assets		74,277	16		79,187	15		80,794	16
Deferred income tax assets		2,109	—		2,197	—		2,616	1
Incremental costs of obtaining contracts		937	—		980	—		967	—
Net defined benefit assets		5,720	1		5,266	1		3,901	1
Prepayments		3,175	1		1,728	—		1,923	—
Other noncurrent assets		4,686	1		4,705	1		4,625	1
Total noncurrent assets		415,096	82		421,095	80		416,569	83
TOTAL	$	512,001	100	$	522,996	100	$	503,389	100

	September 30, 2023 (Unaudited)			December 31, 2022 (Audited)				September 30, 2022 (Unaudited)
LIABILITIES AND EQUITY		Amount	%		Amount		%		Amount		%
CURRENT LIABILITIES
Short-term loans	$	820	—	$	722		—	$	592		—
Financial liabilities at fair value through profit or loss		2	—		—		—		—		—
Hedging financial liabilities		4	—		—		—		—		—
Contract liabilities		14,287	3		13,390		3		13,612		3
Trade notes and accounts payable		13,178	3		16,429		3		13,161		3
Payables to related parties		168	—		539		—		476		—
Current tax liabilities		8,640	2		6,999		1		4,734		1
Lease liabilities		3,456	1		3,339		1		3,216		1
Other payables		21,150	4		25,080		5		20,896		4
Provisions		324	—		226		—		226		—
Current portion of long-term loans		1,600	—		—		—		—		—
Other current liabilities		1,026	—		1,016		—		1,000		—
Total current liabilities		64,655	13		67,740		13		57,913		12
NONCURRENT LIABILITIES
Long-term loans		—	—		1,600		—		1,600		—
Bonds payable		30,481	6		30,477		6		30,476		6
Contract liabilities		7,880	2		7,674		2		7,124		2
Deferred income taxes liabilities		2,390	—		2,301		—		2,248		—
Provisions		481	—		173		—		157		—
Lease liabilities		7,417	2		7,334		2		7,346		2
Customers’ deposits		5,199	1		5,157		1		5,076		1
Net defined benefit liabilities		2,279	—		2,285		—		2,268		—
Other noncurrent liabilities		6,601	1		6,726		1		6,835		1
Total noncurrent liabilities		62,728	12		63,727		12		63,130		12
Total liabilities		127,383	25		131,467		25		121,043		24
EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE PARENT
Common stocks		77,574	15		77,574		15		77,574		15
Additional paid-in capital		149,848	29		149,844		29		149,827		30
Retained earnings
Legal reserve		77,574	15		77,574		15		77,574		15
Special reserve		2,899	1		3,084		1		3,084		1
Unappropriated earnings		64,129	13		71,268		13		62,471		12
Total retained earnings		144,602	29		151,926		29		143,129		28
Others		420	—		(223	)	—		(182	)	—
Total equity attributable to stockholders of the parent		372,444	73		379,121		73		370,348		73
NONCONTROLLING INTERESTS		12,174	2		12,408		2		11,998		3
Total equity		384,618	75		391,529		75		382,346		76
TOTAL	$	512,001	100	$	522,996		100	$	503,389		100

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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
	2023					2022					2023					2022
	Amount			%		Amount			%		Amount			%		Amount			%
REVENUES	$	53,659			100	$	53,508			100	$	161,333			100	$	157,238			100
OPERATING COSTS		33,842			63		33,174			62		100,548			62		97,211			62
GROSS PROFIT		19,817			37		20,334			38		60,785			38		60,027			38
OPERATING EXPENSES
Marketing		5,874			11		5,605			10		17,150			11		16,642			11
General and administrative		1,510			3		1,541			3		4,798			3		4,631			3
Research and development		953			2		983			2		2,854			2		2,785			1
Expected credit loss		14			—		21			—		85			—		95			—
Total operating expenses		8,351			16		8,150			15		24,887			16		24,153			15
OTHER INCOME AND EXPENSES		(1	)		—		(2	)		—		1			—		(6	)		—
INCOME FROM OPERATIONS		11,465			21		12,182			23		35,899			22		35,868			23
NON-OPERATING INCOME AND EXPENSES
Interest income		136			—		58			—		455			—		146			—
Other income		76			—		69			—		325			—		323			—
Other gains and losses		(70	)		—		(118	)		—		(223	)		—		(165	)		—
Interest expenses		(80	)		—		(69	)		—		(233	)		—		(190	)		—
Share of profits of associates and joint ventures accounted for using equity method		109			—		79			—		345			—		395			—
Total non-operating income and expenses		171			—		19			—		669			—		509			—
INCOME BEFORE INCOME TAX		11,636			21		12,201			23		36,568			22		36,377			23
INCOME TAX EXPENSE		2,745			4		2,942			5		6,585			3		6,771			4
NET INCOME		8,891			17		9,259			18		29,983			19		29,606			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		111			—		(4	)		—		548			—		(128	)		—
Gain or loss on hedging instruments subject to basis adjustment		(13	)		—		20			—		(16	)		—		21			—
Share of other comprehensive income (loss) of associates and joint ventures		—			—		2			—		8			—		4			—
		98			—		18			—		540			—		(103	)		—
Items that may be reclassified subsequently to profit or loss:
Exchange differences arising from the translation of the foreign operations		95			—		187			—		102			—		339			—

(Continued)

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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
	2023				2022				2023				2022
	Amount		%		Amount		%		Amount		%		Amount		%
Share of other comprehensive income of associates and joint ventures	$	4		—	$	4		—	$	6		—	$	5		—
		99		—		191		—		108		—		344		—
Total other comprehensive income, net of income tax		197		—		209		—		648		—		241		—
TOTAL COMPREHENSIVE INCOME	$	9,088		17	$	9,468		18	$	30,631		19	$	29,847		19
NET INCOME ATTRIBUTABLE TO
Stockholders of the parent	$	8,620		16	$	8,865		17	$	29,142		18	$	28,466		18
Noncontrolling interests		271		1		394		1		841		1		1,140		1
	$	8,891		17	$	9,259		18	$	29,983		19	$	29,606		19
COMPREHENSIVE INCOME ATTRIBUTABLE TO
Stockholders of the parent	$	8,822		16	$	9,060		17	$	29,795		18	$	28,694		18
Noncontrolling interests		266		1		408		1		836		1		1,153		1
	$	9,088		17	$	9,468		18	$	30,631		19	$	29,847		19
EARNINGS PER SHARE
Basic	$	1.11			$	1.14			$	3.75			$	3.67
Diluted	$	1.11			$	1.14			$	3.75			$	3.67

(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 from the Translation of the Foreign Operations			Unrealized Gain or Loss on Financial Assets at FVOCI			Gain or Loss on Hedging Instruments			Total Others			Total Equity Attributable to Stockholders of the Parent
					Retained Earnings
	Common Stocks		Additional Paid-in Capital		Legal Reserve		Special Reserve			Unappropriated Earnings			Total Retained Earnings																		Noncontrolling Interests			Total Equity
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
BALANCE, JANUARY 1, 2023	$	77,574	$	149,844	$	77,574	$	3,084		$	71,268		$	151,926		$	(111	)	$	(125	)	$	13		$	(223	)	$	379,121		$	12,408		$	391,529
Appropriation of 2022 earnings
Special reserve		—		—		—		(185	)		185			—			—			—			—			—			—			—			—
Cash dividends distributed by Chunghwa		—		—		—		—			(36,476	)		(36,476	)		—			—			—			—			(36,476	)		—			(36,476	)
Cash dividends distributed by subsidiaries		—		—		—		—			—			—			—			—			—			—			—			(1,092	)		(1,092	)
Unclaimed dividend		—		2		—		—			—			—			—			—			—			—			2			—			2
Change in additional paid-in capital from investments in associates and joint ventures accounted for using equity method		—		1		—		—			—			—			—			—			—			—			1			—			1
Actual acquisition of interests in subsidiaries		—		—		—		—			—			—			—			—			—			—			—			—			—
Net income for the nine months ended September 30, 2023		—		—		—		—			29,142			29,142			—			—			—			—			29,142			841			29,983
Other comprehensive income (loss) for the nine months ended September 30, 2023		—		—		—		—			10			10			109			550			(16	)		643			653			(5	)		648
Total comprehensive income (loss) for the nine months ended September 30, 2023		—		—		—		—			29,152			29,152			109			550			(16	)		643			29,795			836			30,631
Share-based payment transactions of subsidiaries		—		1		—		—			—			—			—			—			—			—			1			22			23
BALANCE, SEPTEMBER 30, 2023	$	77,574	$	149,848	$	77,574	$	2,899		$	64,129		$	144,602		$	(2	)	$	425		$	(3	)	$	420		$	372,444		$	12,174		$	384,618

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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
	2023			2022
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$	36,568		$	36,377
Adjustments to reconcile income before income tax to net cash provided by operating activities:
Depreciation		24,697			24,583
Amortization		5,027			4,962
Amortization of incremental costs of obtaining contracts		641			628
Expected credit loss		85			95
Interest expense		233			190
Interest income		(455	)		(146	)
Dividend income		(167	)		(157	)
Compensation cost of share-based payment transactions		7			12
Share of profits of associates and joint ventures accounted for using equity method		(345	)		(395	)
Loss (gain) on disposal of property, plant and equipment		(1	)		6
Gain on disposal of financial instruments		—			(1	)
Loss (gain) on disposal of investments accounted for using equity method		(5	)		1
Provision for impairment loss and obsolescence of inventory		9			72
Valuation loss on financial assets and liabilities at fair value through profit or loss, net		84			141
Others		3			182
Changes in operating assets and liabilities:
Decrease (increase) in:
Contract assets		(1,061	)		(507	)
Trade notes and accounts receivable		1,101			1,602
Receivables from related parties		(36	)		(66	)
Inventories		(1,007	)		(1,082	)
Prepayments		(3,216	)		(2,905	)
Other current monetary assets		(673	)		(464	)
Other current assets		(650	)		(1,029	)
Incremental cost of obtaining contracts		(693	)		(607	)
Increase (decrease) in:
Contract liabilities		1,103			1,662
Trade notes and accounts payable		(3,251	)		(4,900	)
Payables to related parties		(371	)		84
Other payables		(2,623	)		(2,056	)
Provisions		356			(44	)

(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
	2023			2022
Other current liabilities	$	27		$	39
Net defined benefit plans		(460	)		(530	)
Cash generated from operations		54,927			55,747
Interests paid		(270	)		(209	)
Income taxes paid		(4,767	)		(8,338	)
Net cash provided by operating activities		49,890			47,200
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through other comprehensive income		(15	)		(3	)
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		(130	)		(326	)
Proceeds from disposal of financial assets at fair value through profit or loss		—			15
Proceeds from capital reduction and profit distribution of financial assets at fair value through profit or loss		20			66
Acquisition of time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months		(35,425	)		(5,136	)
Proceeds from disposal of time deposits, negotiable certificates of deposit and commercial paper with maturities of more than three months		27,639			6,466
Acquisition of investments accounted for using equity method		—			(20	)
Proceeds from capital reduction of investments accounted for using equity method		—			340
Acquisition of property, plant and equipment		(18,879	)		(20,219	)
Proceeds from disposal of property, plant and equipment		18			5
Acquisition of intangible assets		(115	)		(1,810	)
Acquisition of investment properties		(48	)		(18	)
Decrease in other noncurrent assets		21			205
Increase in prepayments for leases		(1,389	)		—
Interests received		457			144
Dividends received		249			271
Net cash used in investing activities		(27,597	)		(20,013	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term loans		2,490			935
Repayments of short-term loans		(2,392	)		(408	)

(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
	2023			2022
Proceeds from issuance of bonds	$	—		$	3,500
Payments for transaction costs attributable to the issuance of bonds		—			(4	)
Increase (decrease) in customers’ deposits		24			(298	)
Payments for the principal of lease liabilities		(2,937	)		(2,993	)
Increase (decrease) in other noncurrent liabilities		(125	)		1,753
Cash dividends paid		(36,476	)		(35,746	)
Acquisition of additional interests in subsidiaries		—			—
Cash dividends distributed to noncontrolling interests		(1,086	)		(1,048	)
Change in other noncontrolling interests		16			154
Unclaimed dividend		2			2
Net cash used in financing activities		(40,484	)		(34,153	)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		3			85
NET DECREASE IN CASH AND CASH EQUIVALENTS		(18,188	)		(6,881	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		50,193			39,779
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	32,005		$	32,898

(Concluded)

- 7 -

CHUNGHWA TELECOM CO., LTD. AND SUBSIDIARIES

NOTE TO CONSOLIDATED FINANCIAL STATEMENTS

NINE MONTHS ENDED SEPTEMBER 30, 2023 and 2022

(Unaudited)

STATEMENT OF COMPLIANCE

The Company has prepared its consolidated balance sheets as of September 30, 2023 and 2022, the related consolidated statements of comprehensive income for the three months ended September 30, 2023 and 2022, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the nine months ended September 30, 2023 and 2022 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.

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