A. History and Development of the Company Our legal and commercial name is Chunghwa Telecom Co., Ltd. We were officially established on July 1, 1996 as part of the privatization efforts by the government of the ROC and operate under the Statute of Chunghwa Telecom Co., Ltd. Prior to our formation, we operated as a business unit of the Directorate General of Telecommunications, which was the predecessor of the NCC. The common shares of the Company have been listed on the TWSE under the trading code “2412” since October 2000 and its ADSs have been listed on the NYSE under the symbol “CHT” since July 2003. We were privatized as a result of a secondary ADS offering and concurrent domestic auction of our common shares on August 12, 2005, as the ownership by the government of the ROC was reduced to less than 50%. The privatization has enabled us to develop our business and respond to changing market conditions more rapidly and efficiently. Today, we are the largest full telecommunication service provider in Taiwan. Our principal executive offices are located at 21-3 Xinyi Road, Section 1, Taipei 10048, Taiwan, ROC, and our telephone number is (886) 2-2344-5488. Our website address is at: https://www.cht.com.tw. The information contained on our website is not incorporated herein by reference and does not constitute part of this annual report. Our agent for service of process in any suit or proceeding arising out of or relating to our shares, ADSs, American depositary receipt, or ADR, and deposit agreement in the U.S. is Cogency Global Inc., located at 122 East 42nd Street, 18th Floor, New York, NY 10168. We are the largest telecommunications service provider in Taiwan and one of the largest in Asia in terms of revenues. As an integrated telecommunications service provider, our principal services include: mobile services, fixed-line services, ICT business, sales and other services. We accomplished our strategic transformation in 2022 and started to operate under the new customer-centric structure to enhance our performance. In particular, our Consumer Business Group strategically focuses on individual, home-centric and family services to provide better customer experiences. Our Enterprise Business Group consolidates and integrates our enterprise business-related services to create synergy and enhance our comprehensive ICT services. Our International Business Group focuses on serving our international customers and expanding our overseas business. 15 We enjoy leading positions across a number of areas in terms of both revenues and subscribers. We are Taiwan’s largest service provider in fixed communications and mobile communications. As for the IPTV service, our MOD service is the largest video platform in Taiwan in terms of the number of customers. In 2025, our revenues were NT$236.1 billion (US$7.5 billion), our consolidated net income was NT$40.5 billion (US$1.3 billion) and our basic earnings per share was NT$4.99 (US$0.16). In 2025, we made capital expenditures totaling NT$27.7 billion (US$0.9 billion). See “Item 5. Operating and Financial Review and Prospects—B. Liquidity and Capital Resources—Capital Expenditures” for a detailed discussion of our capital expenditures. Competitive Strengths We believe that our primary competitive strengths are: •our position as an integrated, full-service telecommunications provider as well as ICT service provider and our premium brand and broad customer base in Taiwan; and •our capital resources and leading technology capabilities. We are an integrated full-service telecommunications provider as well as ICT service provider and have premium brand and broad customer base in Taiwan. We are the largest telecommunications service provider in Taiwan with a leading position in fixed communications services, mobile communications services, internet services, and video services. We are also a major ICT service provider in areas such as cybersecurity, cloud, AIoT, IDC and big data analysis. Broad range of communications products and services. We are confident with our ability to provide an attractive and comprehensive range of both telecommunications services and ICT total solutions to our business customers. In addition, we are able to offer innovative and customized ICT services and attractive tariff packages to deliver customer-centric services. Broad network coverage. In order to provide higher bandwidth services for our customers, we have been constructing our fiber to the x, or FTTx, network since 2003. We have successfully migrated many of our customers to higher-speed FTTx service. As of December 31, 2025, network coverage of FTTx with speeds of 1 Gbps and higher was approximately 94.3%. In addition, our 4G/5G mobile communications networks provide nationwide coverage. Our large mobile spectrum allocation, together with our extensive network coverage, positions us well for the continued expansion of our mobile services in Taiwan. We are also continuing to build our Wi-Fi network to offload mobile network capacity in residential and public areas with high subscriber density and usage, such as business districts, transportation hubs, airports and convenience stores. We aim to provide seamless broadband connections to better serve our customers. Brand awareness, distribution channels and customer service. Our brand, “Chunghwa Telecom,” has a reputation for quality, reliability and sustainability. We serve our large customer base through our extensive customer service network in Taiwan. See “—B. Business Overview—Marketing, Sales and Distribution—Sales and Distribution.” Our extensive sales and distribution channels help us attract new customers and develop new business opportunities. We continuously enhance user experience across different channels. We integrate our online store and offline channels, with our big data capability, to accelerate the development of our Online-to-Offline business. To enhance customers’ online experience, we provide customized online purchase processes by leveraging our capability to analyze big data, and accurately analyze customer preferences and behaviors, and target different customer groups for implementing accurate marketing initiatives to improve sales success rates and reduce marketing costs. Customers can apply for various services online through websites or apps, and make queries with us in real time. We also provide an online shopping platform, where consumers can purchase telecom tariff plans, smartphones and smart home appliances at the same time. In addition, customers can also order online and enjoy quality services at designated offline stores to save waiting time. 16 In 2025, we obtained several international awards which recognized our strong operational capabilities, service quality and ESG practices. We remained the only Taiwanese telecom operator in Newsweek’s “World’s Most Trustworthy Companies 2025” list. We were once again included in the Dow Jones Sustainability World Index and ranked as one of the top-rated companies in the global telecom industry, and listed in the S&P Sustainability Yearbook 2025 for the for the 3rd consecutive year. We were also the only telecom company reaffirmed by S&P Global Ratings with the highest long-term issuer credit rating (AA). Furthermore, we were not only the first telecom operator in Taiwan to be upgraded to the highest MSCI ESG ‘AAA’ Rating, but also secured The Asset’s Jade Award for Corporate Sustainability Leadership for the fifth consecutive years. In addition to winning the Glotel Award for Digital Infrastructure Innovation alongside with NTT, Chunghwa Telecom stood out as the only winner from Taiwan to secure the Silver AI Innovation Award at the World Communication Awards (WCA). Professional management and outstanding talents. Our management and employees have extensive operating experience and technical knowledge for the future growth of emerging businesses. We also believe we will continue to attract and retain high-quality information technology and marketing talents. We have the capital resources and technology to retain our leading position. Strong capital structure. We have great financial resources in Taiwan. Our low debt-to-equity capital structure, together with our strong operating cash flows, provides us with the flexibility and resources to invest in capital-intensive and growing businesses. We started to construct our 5G base stations in the first half of 2020 and continue to enhance our existing 4G/5G mobile broadband networks, our expansion of FTTx broadband access services, IP-based MOD/Hami Video services, fixed-line/mobile value-added services, or VAS, ICT-related services and service platforms. We also deploy Narrowband-IoT and LTE Cat-M1 networks for IoT applications. Furthermore, we signed an exclusive distribution agreement for OneWeb Low Earth Orbit, or LEO, and SES Medium Earth Orbit, or MEO, satellite services in 2023 and 2024, respectively. In 2025, we partnered with Astranis, a U.S. company, to launch Taiwan’s first dedicated communication satellite, which will enhance the resilience of our communication network. Our strategy is to invest in or acquire emerging growth companies to further expand our business to retain our leading position in the future, such as cybersecurity, IDC/cloud and AIoT strategic businesses. We will continue to construct facilities of data center and cloud services and will cooperate with international public cloud service providers, including Google Cloud Platform, or GCP, Amazon Web Service, or AWS, and Microsoft Azure, to deliver hybrid cloud solutions to enterprise customers in order to be a leading IDC and multi-cloud service provider in Taiwan. In addition, we will continue to construct new submarine cables linking the U.S. and Asia-Pacific region, as well as expand the bandwidth of outbound connections and enhance network strength to attract more OTT services providers to increase their investments in Taiwan. Advanced network technology. By the end of 2025, more than 94.5% of households in Taiwan can enjoy ultra-fast connectivity with our FTTH network. We will still expand FTTH network coverage of households in 2026, based on the requirement of ultra-fast connectivity service in Taiwan. In 2025, we also continued to enhance our 4G/5G mobile broadband networks. Our investment in network infrastructure places us in a position to capture a significant share of the internet and high-speed data transmission market. We have developed Multi-access Edge Computing, or MEC, technology and successfully launched it to the market, enabling us to maintain a market-leading position in the 5G private network. Research and development expertise. In 2025, our research and development expenses accounted for 1.8% of our revenues. See “Item 5. Operating and Financial Review and Prospects—C. Research and Development, Patents and Licenses” for descriptions about areas of our research and development. We believe our focus on research and development will allow us to efficiently develop and deploy new technologies and services ahead of our competitors. Business Strategies We operate under three strategic pillars—Digital Resilience, Smart Empowerment, and a Sustainable Future—which guide the development of our products, services and operational priorities. These pillars are implemented in accordance with our internal guiding principle of “AI Everywhere,” which reflects our focus on integrating artificial intelligence across our technology offerings and internal processes. Our business strategy 17 emphasizes the provision of secure, reliable and trustworthy ICT services, supported by three principal growth areas: technology capability development, business expansion and diversification of markets and partnerships. Our operations are grounded in core values that include Integrity, Customer Trust, Accountability and Innovation, and are supported by a management philosophy that prioritizes streamlined, pragmatic and intelligent operations. We seek to maintain operational resilience and foster long-term stakeholder confidence, while pursuing sustainable value creation for our customers, business partners, shareholders and employees. In response to ongoing developments in artificial intelligence and digital transformation, we position ourselves as both a service enabler and collaborative solution provider for customers across various industries. Our solutions are designed to support customers’ digitalization initiatives and their transition toward net-zero sustainability objectives. Through these activities, we aim to support ESG initiatives and contribute to broader efforts to enhance long-term economic resilience and sustainability. Consistent with our strategic objectives, we have developed the following business strategies: Drive expansion and growth based on our core strengths We endeavor to maintain our strong market position in telecommunication business and seek to expand the scope of our business beyond network services by offering service platforms and VAS to capture new opportunities and generate revenue growth, such as IoT platforms and cloud platforms. We also continue to enhance our MOD/OTT service video platform, which offers digital contents, live broadcasting and subscription video on demand, or SVoD, services. Broadband services: We strive to maintain our broadband market share and enjoy the increase of ARPU for our FTTx internet services. We believe customer demands owing to digital transformation will continue and we will grasp those opportunities from the trend. Over the years, we are continuously encouraging more migration of our FTTx subscribers to higher-speed FTTx service to further enhance our ARPU. We continue to build our FTTH infrastructure, and we believe these efforts will help us maintain our advantages in broadband services. A high-quality fixed broadband network is also essential for our high-definition MOD services. Video services: We provide attractive and user-centric entertainment experience for our customers by offering 4K high-quality videos, self-selected channel mechanisms and multi-screen options on MOD and 5G service on Hami Video. We also expect to further expand our contents and applications to serve more customers by enhancing the partnerships with our key content providers. In 2025, we accelerated the growth of our video business by enhancing Hami Video’s content portfolio and making strategic investments in collaboration with leading global and domestic production teams. Leveraging innovative technologies such as low‑latency and multi‑angle broadcasting, along with AI‑driven intelligent search and personalized recommendations, we further elevated the overall viewing experience for users. Moving forward, we will continue the successful strategies to further expand our video business. Mobile Communications: We successfully launched 5G services in Taiwan in 2020. Our strategy for mobile services includes the following initiatives: •with a high quality 5G network, integrating digital life value-added services and innovative offerings to boost 5G penetration rate and ARPU; •reallocating resources to drive mobile subscriptions toward premium plans; •maximizing 5G subscriber numbers by encouraging 5G migration plans with incentives such as Hami Points, phone discounts and bonus data; •leveraging big data analytics to identify and target high-potential subscribers; •offering a variety of plans to cater to different needs; and •strengthening our technology capabilities to develop advanced 5G solutions and AIoT service. 18 ICT business: Leveraging our core telecommunication infrastructure and technology capabilities to expand ICT services at home and abroad, we aim to become a leading provider of smart life and an enabler of digital economy as well as to become the most valuable and trustworthy ICT company. In order to drive the development of multiple emerging ICT services such as smart city, smart manufacturing, smart healthcare, smart transportation, and smart surveillance, we focus on high-quality platforms, building customer-centric ecosystems with key partners, and making strategic investments, mergers and acquisitions. With the strength and reliability of our technologies and services, we will gain a competitive edge to continue expanding our ICT business in the future. Emphasize quality of service and customer satisfaction Quality of service is critical in attracting and retaining customers and enhancing our long-term profitability. In order to continuously enhance and improve the quality of our services, we have, in addition to the quality assurance function of our regular operating units, established a number of dedicated task forces to monitor our network performance. Our senior management sets our quality evaluation criteria and regularly reviews the quality of our performance. To ensure customer loyalty and achieve customer-centric spirit with high-quality services, we consistently focus on and invest in the optimization of the entire customer journey. In terms of network quality, we constantly strive for precise expansion and create seamless via fixed networks, mobile networks and Wi-Fi, to cater to high-speed Internet access demand. We develop new data-driven approaches to strengthen customer engagement and retention to enhance customer stickiness. Through accurate labeling and big data analytics of customer intentions, we push forward data-driven service process optimization and target customer segment marketing and caring. We also establish online and offline multiple service networks for customer service touchpoints and provide 7x24 all-around professional services and feedback channels to enhance customer experience and satisfaction. Improve operational and cost efficiency We continue to focus on cost control and improve our operational and cost efficiency by leveraging our IT capabilities and cloud resources. The key initiatives implemented in recent years include: •strengthening digital capabilities: leveraging AI and big data technologies to build smart and automated services, optimize customer experience and speed up processes; •optimizing business operations support system service efficiency: migrating information systems into the cloud, sharing information technology resources; and •expanding usage of information resources: building up a centralized, digitalized and specialized procurement process to enhance cost efficiency. In particular, we primarily use and integrate Gen AI technology in our operation to optimize our cost efficiency in the following ways: •smart customer support: we have adopted GenAI-powered Copilots. These systems not only handle inquiries but also assist human agents with real-time knowledge retrieval and automated form completion, significantly reducing handling time, enhancing accuracy, lowering agent workload, and improving overall service efficiency and customer satisfaction. •network operations and maintenance: we utilize advanced AI models to predict potential optical interface degradation trends, proactively diagnoses the root causes of end-to-end network data service problems, detects potential issues and intervenes at an early stage, which together enhance our overall operational performance. •software engineering: we have broadly adopted AI coding assistants (Copilots) across our development teams in generating code, writing test cases, and creating documentation, thereby notably accelerating our software development lifecycles and enhancing productivity. •smart energy management system: we have independently developed an AI-powered smart energy management system to predict air conditioning energy consumption and adjust temperature control strategies to optimize energy savings in multiple data centers. 19 •incorporate AI and machine learning into our operations through partnerships with mobile network equipment providers: we use AI to predict network load and automatically switch the network to deep sleep mode without affecting user experience. By leveraging AI technologies, we have achieved significant cost savings while enhancing operational efficiency across various domains. Our long-term goal is to optimize our capital expenditure by focusing on investing in innovative products and services with attractive return profiles. We continue the construction of our fiber-based fixed-line and mobile network to increase the network bandwidth and enhance operational efficiencies by deploying advanced technologies as well as optimizing network architecture and infrastructure upgrades. Expand our business through alliances, acquisitions and investments We continuously expand our business in growth areas and proactively deploy new technologies and services through alliances, acquisitions and investments. We believe that our experience, operational scale and large customer base make us an attractive ally for other service providers. Alliances. In 2024, we maintained strategic collaborations with global leading enterprises to diversify our business and enhance service capabilities. In January 2024, we entered into a two-year strategic memorandum of understanding, or MOU, with Fujitsu to jointly develop an IOWN-based All-Photonics Network (APN) in Taiwan. In August 2024, pursuant to our October 2023 MOU with NTT Corporation, we launched the world’s first international IOWN APN between Taiwan and Japan, advancing the IOWN initiative. Based on the cross-border IOWN APN, we demonstrated the real-time joint performance of "Cho-Kabuki" in the two sides of Expo 2025 Osaka and Taipei in May 2025, as well as the three major exhibits at the NTT R&D Forum, namely VLM AI training verification, Smart Factory AI inference, and Virtual Production in November 2025. We are the first telecom operator in Taiwan to participate in the Groupe Speciale Mobile Association (GSMA) Open Gateway initiative. As of December 31, 2025, we had developed nine 5G Network Open Application Programming Interfaces (APIs), covering innovative applications such as financial fraud prevention, location‑based services, quality‑of‑service management, and 5G edge computing. In 2025, we also partnered with Microelectronics Technology Inc. (MTI) to secure its place as one of the seven global recipients of the U.S. National Telecommunications and Information Administration (NTIA) Notice of Funding Opportunity (NOFO2) program, aiming to advance Taiwan’s 5G Open RAN technologies onto the international stage. Acquisition and Investments. We have focused our acquisition strategy on making strategic acquisitions of companies that we believe to be fulfilled our long-term strategic goals. We have focused our investment strategy on the development of new businesses and the enhancement of our operational efficiency, especially the aspects of AI, 5G and ICT services. Recently we have entered into the following notable transactions: We strengthen our advantages in the public cloud business and generative AI technology through investing in iKala Global Online Corp., or iKala, in February 2024, from which we can further leverage its leading GCP cloud business, cloud SaaS services, such as MarTech, and generative AI technology. Under the vision of “AI-Ready, Future-Ready”, we established a wholly-owned subsidiary, CHT InventAI Co., Ltd. (“InventAI”) in October 2025, focusing on providing AI-driven DeepFlow (intelligent analytics) and DeepVoice (customer insights) solutions to clients across a wide range of sectors, including telecommunications, financial services, manufacturing, transportation, healthcare and government. To enhance the provision of ICT services to Taiwanese enterprises and local businesses in Malaysia, we established Chunghwa Telecom Malaysia Sdn. Bhd. (“CHTM”) in June 2025 through our Singapore subsidiary, which has long-standing operational expertise and established regulatory advantages across the ASEAN region, to further advance our presence, collaboration and development in the Southeast Asian market. 20 We approved the establishment of Intelligent Video Surveillance (“IVS”) subsidiary led by our internal incubation team in 2025. Leveraging its proprietary AI video technologies and established operational expertise, this subsidiary aims to capture AI video opportunities, maximize cross-group synergies, and drive sustainable revenue growth. Going forward, we will focus on driving the growth of the digital economy and foster innovation across key businesses sectors. We will continue to explore opportunities in equity investments and strategic acquisitions that enhance our core competitiveness and align with our long-term strategic goals. By cooperating with other companies and leveraging our advantages, we strive to gain market share in the AI, 5G, AIoT, cybersecurity, IDC/Cloud Computing and cultural media industry. Furthermore, we will continue to explore opportunities to strengthen our cooperation with companies in the ASEAN countries, including in telecommunication business and smart city ICT businesses. Maintain focus on maximizing stockholder value We commit to maximizing stockholder value and intend to maintain a sustainable dividend policy. Under the ROC Company Act, companies are allowed to distribute special cash dividends from capital surplus. In addition, the accumulated legal reserve that we had set aside in previous years has amounted to the aggregate par value of our outstanding share capital. Therefore, according to relevant regulations, we are not required to appropriate profits to our legal reserve starting from 2015. With the approval of our board of directors in February 2026, our payout ratio was 104.20% in 2025 earnings. See “Item 8. Financial Information—A. Consolidated Statements and Other Financial Information.” B. Business Overview Our Principal Lines of Business We have three segments that we operate and manage as strategic business units: consumer business, enterprise business and international business. Consumer Business Our consumer business strategically focuses on individual- and home-centric businesses, such as mobile, fixed broadband, Wi-Fi, IPTV (MOD) and OTT services. To create value for our customers and provide better customer experiences, we offer FTTx and ADSL services and enhance customer internet surfing experiences through our value-added services that leverage our Wi-Fi advantage as well as IPTV (MOD) and OTT (Hami Video) offerings. We have the largest mobile subscriber base in Taiwan with solid network performance. We are the largest internet service provider, or ISP, and also the largest domestic video service provider in Taiwan. Enterprise Business Our enterprise business focuses on creating synergy and enhancing our integrated ICT services. It also promotes the development of emerging businesses, which focus on IDC, cloud, cybersecurity, 5G+AIoT, big data, AI, enterprises’ digital transformation and system integration. We have a large customer base of high-quality enterprises, including those who do both business-to-business and business-to-consumer business. Our enterprise business team identifies market insights to provide a variety of enterprise business-related services to satisfy our customers. We are the largest IDC services provider in Taiwan, with an IDC market share of more than 70%, as well as the leading cybersecurity service provider in the market. International Business Our international business focuses on serving our international customers. Our international customers include Taiwanese companies seeking global expansion, large Taiwanese enterprises located in foreign countries, foreign companies and multinational enterprises. As the largest submarine cable service provider in Taiwan, together with our international submarine cable stations, overseas subsidiaries, strategic partners and alliances, we are well 21 positioned to help our customers to capture global market opportunities by providing our diversified product portfolio and service offerings, including fixed-line services (international voice, data, and value-added services, etc.), mobile services (roaming and global IoT services, etc.) and ICT services (IDC, cloud, cybersecurity, ICT integrated solutions services, etc.). Service and Product Offerings As an integrated telecommunications service provider, our principal services include: mobile services, fixed-line services, ICT business, sales and other services. Mobile Services We are Taiwan’s largest mobile services provider in terms of both revenues and subscribers. In 2023, we generated revenues of NT$65.0 billion, or 29.1% of our total revenues, from mobile services. In 2024, we generated revenues of NT$67.0 billion, or 29.1% of our total revenues, from mobile services. In 2025, we generated revenues of NT$69.0 billion (US$2.2 billion), or 29.2% of our total revenues, from mobile services. The growth in mobile service revenues was primarily driven by an increase in postpaid subscriber numbers and upsell resulting from a steady 5G migration in 2025, as well as growth in value-added service revenues. We drove 5G migration and 5G penetration rate in a steady manner. In addition, as we focus on creating value for subscribers, our postpaid ARPU (excluding IoT) per month increased from NT$553 in 2024 to NT$561 in 2025, and our 5G penetration among smartphone users was 46.4% by the end of 2025. Year Ended December 31 2023 2024 2025 NT$ NT$ NT$ Postpaid ARPU(1) for mobile service 547 553 561 (1)Postpaid ARPU is calculated by dividing the consolidated mobile service revenues (excluding IoT and prepaid revenues) by the average number of postpaid subscribers during the month (excluding IoT). We remain the largest mobile operator in Taiwan in terms of revenues and number of subscribers. We had approximately 11.2 million mobile subscribers, excluding IoT SIMs, and a market share of approximately 39.7% in terms of total mobile customers (excluding IoT) and approximately 40.8% in terms of total mobile services revenues in Taiwan as of December 31, 2025. In October 2013, we obtained a 4G mobile broadband services spectrum of 10MHz paired spectrum in the 900MHz frequency band and 25MHz paired spectrum in the 1800MHz frequency band. We paid NT$39.1 billion to the government for the spectrum. The license is valid until December 31, 2030. We launched 4G mobile broadband services in May 2014. In December 2015, we obtained an additional spectrum for 4G mobile broadband services of 30MHz paired spectrum in the 2500MHz and 2600MHz frequency bands, and we paid NT$10.0 billion to the government. The license is valid until December 31, 2033. We put these 2500MHz and 2600MHz frequency bands into use on March 24, 2016. In November 2017, we further obtained a spectrum for 4G mobile broadband services of 5MHz paired spectrum in the 1800MHz frequency band and 20MHz paired spectrum in the 2100MHz frequency band, and we paid NT$10.9 billion to the government. The licenses are valid until December 31, 2030 and 2033, respectively. In February 2020, we obtained a spectrum for 5G mobile broadband services of 90MHz spectrum over 3.5GHz frequency bands and 600MHz spectrum over 28GHz frequency bands, and we paid NT$48.4 billion to the government. The license is valid until December 31, 2040. We launched 5G services on June 30, 2020. 22 In May 2022, we obtained 900MHz band 2x10MHz bandwidth spectrum and equipment from Asia Pacific Telecom Co. Ltd. (merged with Far EasTone Telecommunications Co., Ltd., or Far EasTone) in consideration of approximately NT$1.9 billion to enhance network performance. The license is valid until December 31, 2030. We offer incentives, such as mobile handset subsidies and rewards points for immediate purchase, when new subscribers agree to sign a service contract with us or when existing subscribers renew their contracts with us, ranging from 12 months to 60 months. Our tariffs for postpaid mobile subscribers primarily consist of monthly fees and usage fees. We also offer loyalty programs, which are our membership projects to offer a number of benefits and rewards, including Hami Points, special offers, and priority ticket access, to encourage subscription to our 5G mobile service. As of December 31, 2025, we had approximately 1.3 million prepaid subscribers, representing approximately 11.0% of our total mobile subscribers, excluding IoT. Prepaid subscribers do not pay monthly fees while may opt for voice or data packages. Once the prepaid balance is fully utilized, subscribers can top up their accounts to continue using the service or elect to switch to a postpaid plan while retaining their existing telephone number. Fixed-line Services In 2023, we generated revenues of NT$81.9 billion, or 36.7% of our total revenues, from fixed-line services. In 2024, we generated revenues of NT$81.7 billion, or 35.5% of our total revenues, from fixed-line services. In 2025, we generated revenues of NT$81.5 billion (US$2.6 billion), or 34.5% of our total revenues, from fixed-line services. The decline in fixed-line services revenues was mainly due to the decreased voice revenues, partially offset by the increase of data communication and broadband access revenues. Fixed-line services are one of our principal businesses. Our fixed-line services include fixed broadband services, fixed voice services, leased line services, video services and satellite services. Fixed broadband services: our fixed broadband services mainly consist of broadband access, data communication services and Wi-Fi services. We provide broadband access through connections based on our FTTx and ADSL technologies. Our revenues from our broadband access services in 2023, 2024 and 2025 were NT$19.6 billion, NT$21.2 billion and NT$22.0 billion (US$0.7 billion), respectively. Over the years, we are continuously expanding our high-speed FTTx household coverage and encouraging more migration of our FTTx subscribers to higher-speed FTTx service. The following table sets forth our ARPU for each of the periods indicated. Year Ended December 31 2023 2024 2025 NT$ NT$ NT$ ARPU for broadband services per month(1) 774 788 808 ARPU for FTTx services per month(2) 836 846 864 (1)ARPU for our broadband services per month is calculated as the sum of (a) broadband access revenues for the relevant period divided by the average of the number of our broadband access customers on the first and last days of the period divided by the number of months in the relevant period and (b) HiNet ISP service revenues divided by the average of the number of HiNet ISP service subscribers on the first and last days of the period divided by the number of months in the relevant period. (2)ARPU for FTTx services per month is calculated as the sum of (a) FTTx access revenues for the relevant period divided by the average of the number of our FTTx access customers on the first and last days of the period divided by the number of months in the relevant period and (b) HiNet FTTx ISP service revenues divided by the average of the number of HiNet FTTx ISP service subscribers on the first and last days of the period divided by the number of months in the relevant period. Our overall broadband ARPU increased in 2023, 2024 and 2025, mainly due to the demand for broadband speed upgrades, which further propelled the growth of higher-speed service adopters. 23 Our data communication service includes HiNet, our brand name as an ISP, and HiLink, a VPN service for enterprises. We are the largest ISP in Taiwan, with a subscriber market share of 52.2% in Taiwan as of December 31, 2025. As of the same date, approximately 85.2% of our broadband customers were also HiNet subscribers, using HiNet as their ISP, and 92.9% of our FTTx service customers subscribed HiNet ISP service. The following table sets forth HiNet’s subscribers as of each of the dates indicated. As of December 31 2023 2024 2025 (in thousands) Total internet subscribers in Taiwan 7,097 7398 7,582 HiNet subscribers: HiNet FTTx subscribers 3,526 3,591 3,656 HiNet non-FTTX subscribers 506 483 463 Total HiNet subscribers 4,032 4,074 4,119 We also provide Wi-Fi services. As of December 31, 2023, 2024 and 2025, we had a total of approximately 3.0 million, 2.8 million and 2.6 million residential and enterprise customers that leased our access points, respectively. We also provide home Wi-Fi devices rental services, and the number of home Wi-Fi devices increased by 16.2% year-over-year. Fixed voice services: our fixed voice services mainly consist of local telephone, domestic long distance telephone and ILD telephone services. We are the leader of the local telephone service market, with an average subscriber market share of approximately 91.4%, 91.4% and 91.4% in 2023, 2024 and 2025, respectively. Total revenues from local telephone services comprised 9.5%, 8.7% and 8.1% of our total revenues in 2023, 2024 and 2025, respectively. As for the domestic long distance telephone services in Taiwan, total revenues from domestic long distance telephone services comprised 0.7%, 0.6% and 0.5% of our total revenues in 2023, 2024 and 2025, respectively. The decreasing trend of local telephone service and long distance telephone service was mainly due to the migration to mobile services and increased use of VoIP applications. We also provide ILD telephone services in Taiwan, and its revenues accounted for 0.8%, 0.7% and 0.5% of our revenues in 2023, 2024 and 2025, respectively, reflecting phased reduction of low-margin-contracts. Leased Line Services: We are the leading domestic leased line services provider and the leading international leased line services provider in Taiwan, primarily offering exclusive lines that allow point-to-point connection for voice and data traffic. Our local and domestic long distance leased line services revenues were NT$4.3 billion, NT$4.2 billion and NT$4.0 billion (US$0.1 billion) in 2023, 2024 and 2025, respectively. The slight decline in revenues was due to the termination of certian base station circuits lease. Our international leased line services revenues were NT$2.7 billion, NT$2.6 billion and NT$2.7 billion (US$85.6 million) in 2023, 2024 and 2025, respectively. The slight increase in revenues in 2025 was mainly due to the completion and the launch of the new international submarine cables, SJC2, and the first phase of Apricot. Video Services By leveraging video streaming technology via set-top boxes connected to our FTTx data networks, our MOD customers can enjoy TV channels, video-on-demand (VOD), OTT services, and other offerings. As of December 31, 2025, we provided 197 channels, including three 4K channels, along with more than 56,000 hours of on-demand video streaming. In addition to our standard packages, we also offer SVOD services for films, dramas, anime series, kids’ content and variety shows. Since 2017, our MOD platform has effectively delivered OTT services such as Netflix. Our own OTT platform, Hami Video, offers Pay-Per-View, SVOD, channels, and other services to end users. As of December 31, 2025, subscriptions to our video services, including MOD (IPTV service) and Hami 24 Video (OTT service), have reached approximately 3 million. We continue to see growth in our tiered pricing channel packages and digital convergence offerings. Our MOD revenues were NT$3.7 billion, NT$3.7 billion and NT$3.6 billion (US$0.1 billion) in 2023, 2024 and 2025, respectively. The slightly decline from 2023 to 2025 was primarily due to a decrease in subscriber base. We have introduced optional service packages with customized subscriptions to better meet our customers’ preferences. In light of a highly competitive market, we will continue to strengthen our customer stickiness by investing in high-quality content across our various platforms. This strategy will help us maintain our position as the largest video platform in Taiwan. Satellite Services We entered into a contract with ST-2 Satellite Ventures Pte., Ltd. on March 12, 2010 to lease capacity on the ST-2 satellite for 15 years. As our ST-2 satellite is in good operating condition, the expected lifespan is extended for another three years and three months after evaluation in 2021. Please refer to Note 40 to our consolidated financial statements included elsewhere in this annual report for further details. In addition, we have two satellite communication centers with geographical redundancy to ensure uninterrupted TV broadcasts, satellite VAS and backup systems in responding to major emergencies. We also provide satellite services in Southeast Asia. In March 2023, we entered into an agreement with Singapore Telecommunications Limited to jointly invest in a new satellite project to upgrade and replace our aging ST-2 satellite. This collaboration enables us to provide all the services and capabilities of the current generation and significantly improve service quality and capabilities. Furthermore, in April 2025, we entered into an agreement with Astranis Space Technologies Corp. for a dedicated micro-geostationary orbit, or micro-GEO, capacity for Taiwan to enhance network resilience. In December 2025, we further secured the frequency allocation of fixed-satellite services for the micro-GEO services. In November 2023, we entered into an exclusive distribution agreement with Eutelsat Group for the distribution of OneWeb LEO satellite services. In March 2025, the OneWeb satellite constellation had completed full-coverage deployment across Taiwan and the offshore islands. Subsequent to obtaining regulatory clearance, we launched commercial services in June 2025, and have secured projects from both government and enterprise clients. In August 2024, we entered into an exclusive partnership agreement with SES, pursuant to which we provide exclusive MEO satellite services in Taiwan. Subsequent to obtaining regulatory approval, we commenced commercial operations in October 2025, which underpins our strategic development of multi-orbit satellite constellation communication services. Additionally, in December 2025, we secured regulatory approval for frequency allocation for our local gateway station, thereby enhancing the operational capacity available to our satellite communication services. ICT Business In 2023, we generated revenues of NT$28.6 billion, or 12.8% of our total revenues, from ICT services. In 2024, we generated revenues of NT$32.9 billion, or 14.3% of our total revenues, from ICT services. In 2025, we generated revenues of NT$35.5 billion (US$1.1 billion), or 15.0% of our total revenues, from ICT services. The growth in ICT services revenues was mainly due to the rising demand for IDC, cloud, cybersecurity, big data and integrated ICT solutions from our clients. By integrating various technologies, such as cloud computing, cybersecurity, big data analysis, IoT, generative AI, and accelerating emerging services, we provide customized ICT total solutions to enable our enterprise customers to improve efficiency and enjoy smart life. 25 We saw increasing occupancy in our highest-rated IDCs, driven by strong potential demand. In response to the growing demands for AI applications, we continue to expand our IDC business by building AIDCs to deliver AI computing power and provide GPU-as-a-Service (GPUaaS service). We are also a cloud service provider. Our CHT cloud service is a multi-cloud network convergence service. With a high-quality global network as the basis for all cloud services, it integrates our self-developed cloud service, hicloud, and other public cloud services, including Amazon Web Services, Microsoft Azure, and Google Cloud Platform. In addition, we cooperate with our subsidiary, CHT Security Co., Ltd., to provide HiNet Advanced Networks Defense System, or ANDs, and Web Application Firewall, or WAF. ANDs can combine with HiNet Security Fleet solution to upgrade users’ information systems security. We also provide Content Delivery Network, or CDN, service. This service effectively speeds up content delivery on websites with high traffic. The closer the CDN server is to the user geographically, the faster the content will be delivered. We provide CDN service to internet content providers to ensure stable quality when programs are broadcasted. We will expedite CDN construction to enhance digital convergence product strength. Taking advantage of the high speed, low latency and massive connectivity of 5G technology, we also offer our enterprise customers 5G private network services. This dedicated network provides a secure and reliable connectivity solution for 5G smart applications across sectors such as government, manufacturing, and healthcare, ensuring data security while enhancing scalability and operational efficiency. Driving a strategic expansion of AI technologies, we are broadening innovative AIoT application scenarios across transportation, security, energy, building, and healthcare sectors. Leveraging the high performance, stability, and low latency of 5G technology, we integrate these capabilities into comprehensive solutions that advance intelligence and low-carbon development, such as video surveillance, Cellular-based Vehicle Probe (CVP), traffic sign optimization, solar system management, and remote healthcare services. Building on our expertise in big data analytics and AI technology, we build big data analysis platforms to assist our customers in AI model development and management. These AI models are used in cloud services and intelligent customer support, as well as across industries such as government, manufacturing, healthcare and finance. Sales We engage in the distribution and sales of mobile handsets and wearable devices on our mobile network to customers through our directly-owned stores, online store, and authorized exclusive service stores operated by SENAO, and also through third-party retailers. See “Marketing Strategy” and “Sales and Distribution” in “—Marketing, Sales and Distribution.” Interconnection We provide interconnection of our fixed line network and mobile network with other operators. The following table sets forth our interconnection fee revenues and costs for the periods indicated. These revenues and costs are included, depending on the nature of the call made, in domestic fixed communications or mobile communications revenues and expenses, respectively. 26 Year Ended December 31 2023 2024 2025 NT$ NT$ NT$ US$ (in billions) (in millions) Interconnection fee revenues: Fixed line 0.5 0.4 0.3 9.4 Mobile 0.4 0.3 0.3 9.4 Interconnection costs: Fixed line 0.3 0.3 0.2 7.0 Mobile 0.7 0.7 0.7 22.5 The interconnection rate between fixed-line customers and other fixed-line customers is NT$0.26 per minute during peak times and NT$0.08 per minute during off-peak times. The interconnection rate for calls initiated by mobile customers to fixed-line customers has been NT$0.3241 per minute during peak times and NT$0.1575 per minute during off-peak times since January 2025. However, pursuant to the notice issued by NCC, the interconnection fees of local telephones, domestic long-distance or international calls, and mobile-to-fixed-line calls should be decreased gradually from June 5, 2023 to December 31, 2026. See “Item 5. Operating and Financial Review and Prospects—Overview—Tariff adjustments.” Our mobile interconnection revenues and costs decreased from 2023 to 2025, mainly due to (i) a year-over-year decrease of our mobile interconnection rate, as required by the tariff adjustment rules promulgated by NCC and (ii) the decreasing traffic volume attributable to VoIP substitution. Under the tariff adjustment rules, our mobile interconnection rate will decrease from NT$0.386 per minute in 2025 to NT$0.330 per minute in 2028. Fixed interconnection revenues and costs decreased from 2023 to 2025, mainly due to the decreasing traffic volume attributable to VoIP substitution. In addition, cost increases are subject to approval by the regulatory authorities. We expect that our interconnection contracts will generally be reviewed annually, although we may also enter into long-term contracts. Marketing, Sales and Distribution Marketing Strategy In order to retain and expand our large customer base and to encourage our customers to increase their use of our services and products, we continue to focus our marketing strategy on the following areas. •services and products: we continuously develop new VAS and products based on different market segments and Hami Point loyalty program, with the aim of increasing our high-usage customers and enhancing customer loyalty. •pricing and promotions: we design flexible pricing packages that allow customers to select and design special promotional packages to encourage usage. •distribution channels: we seek to broaden our distribution reach by strengthening our cross-industry alliances and marketing relationships. Furthermore, to expand our sales channels, we also implement an external sales agent system by collaborating with SENAO, Synnex Technology and International Corporation, enabling us to extend customer services nationwide. In addition, we have established an online store for years to enhance service efficiency and to broader our reach to young people. 27 •branding: Chunghwa Telecom has been a well-known household brand with nationwide infrastructure and service centers. In order to fulfill our brand commitment, “Always Ahead,” we have always acted in accordance with the highest corporate governance standards, and focus on meeting customer demand and satisfaction to generate additional value for shareholders. Sales and Distribution As of December 31, 2025, we had 17 operations offices for operations, 434 self-operated stores, 14 customer service call centers, and an online store for sales and customer service. In addition, we have simplified transaction process on our online store to improve user experience, and we enhanced our service efficiency by increasing digital channel access of contactless transactions. We also had 240 SENAO exclusive service stores as of December 31, 2025. Our investment in SENAO continues to enhance our mobile handset distribution and sales capabilities in which customers can subscribe to our broadband service, MOD service and other services at SENAO retail stores. See “Item 7. Major Stockholders and Related Party Transactions—B. Related Party Transactions” for a discussion of the agreement between the parent company and SENAO about our business cooperation. Competition We face competition in virtually all aspects of our business. Mobile Services In December 2023, two mergers were completed. As a result, the number of mobile network operators in Taiwan decreased from five to three, including us. All of these three operators have 4G and 5G mobile broadband licenses. Additionally, nowadays mobile operators are expanding their business beyond basic mobile services to encompass other value-added services such as OTT, media, cloud, cybersecurity, and IoT solutions, with a goal to provide subscriber with a holistic digital experience to increase subscribers' stickiness. In 2025, under this new market landscape, we continue to maintain our growth momentum and leadership in the market. In spite of the decrease in mobile subscribers (excluding IoT) in 2025, our postpaid mobile subscribers continued to increase, benefiting from our successful strategy in terms of subscriber retention and new subscribers acquisition. Our mobile service revenues also increased due to the growth in postpaid subscribers and the upsell resulting from 5G migration. In addition to the mobile network operators, there are also mobile virtual network operators, or MVNOs, which could provide mobile services by leasing the capacity and facilities of a mobile service network from a licensed mobile service provider without a spectrum allocation. However, with the implementation of the Telecommunications Management Act in 2020, the NCC’s MVNO registration is no longer mandatory. Our strengths in the mobile services market are primarily based on our premium brand, quality of service, network reliability and attractiveness of service packages. See “Network Infrastructure—Mobile Services Network” for a discussion on our advantage of mobile broadband services spectrum. Fixed-line Services •fixed broadband services: in the fixed broadband market, we have encountered challenges from other cable operators seeking to increase their market share with lower pricing strategies. They have also offered fixed and mobile broadband bundled services through strategic alliances with other mobile operators, extending their footprint in fixed broadband. •fixed voice services: revenues from local and domestic long distance telephone service of telecommunication services providers has continuously decreased in the past years primarily due to mobile and VoIP substitution. Challenges faced by mobile data service providers have increased 28 significantly due to the popularity of smart mobile devices and mobile applications such as LINE and WeChat. •leased line services: major competitors in this field are three fixed line operators, namely Taiwan Fixed Network Co., Ltd, New Century Infocomm Tech. Co., Ltd. and Far EasTone Telecommunications Co., Ltd. The leased line services providers primarily focus on the basis of price and the bandwidth speed of services. •video services: major competitors in this field include six cable TV MSOs, 20 independent cable TV operators as well as OTT service providers. These service providers focus on price and multimedia content. ICT Business We leverage our technology capability to provide comprehensive ICT services. In terms of IDC business, we are the leading IDC service provider in Taiwan with more than 70% market share. We offer the best IDC service quality, and our major competitors include Far EasTone, Taiwan Fixed Network and Acer Cyber Security. Our major competitors in cybersecurity include Acer Cyber Security Inc. and ISSDU Inc. in terms of cybersecurity professional services and TAIWAN-CA Inc. in terms of identification business. Our major competitors in cloud services are cloud services resellers and system integration service providers, including eCloudvalley Digital Technology Co. Ltd, CKmates International Co. Ltd, CloudMile Inc., Nextlink Technology Inc., Acer E-Enabling Service Business Inc. and SYSTEX Corporation. Our major competitors in AIoT application services are telcos and system integration service providers, including telecom operators such as Far EasTone and Taiwan Mobile, as well as system integration service providers and emerging startups in sectors such as energy management and image recognition. Network Infrastructure Our network infrastructure consists of transmission networks that convey voice and data traffic, switching networks that route traffic between networks, and mobile, internet, leased line and data switching networks. We purchase most of our network equipment from well-known international suppliers. As part of the purchase contract, these suppliers deliver and install the equipment for us. We also purchase from local suppliers a variety of components such as transmission lines, switches, telephone sets, MOD set-top boxes and radio transmitters. Approximately 12,027 of our employees were engaged in network infrastructure development, maintenance, operations and planning as of December 31, 2025. Transmission Networks As of December 31, 2025, our transmission networks consisted of approximately 2.97 million fiber kilometers of fiber optic cable for trunking and approximately 13.68 million fiber kilometers of fiber optic cable for local loop. Due to the emergence of Packet Transport Network, or PTN, technology, a cost-effective method for transmitting data services, we began the deployment of PTN in 2013. Due to the high utilization of our existing Re-configurable Optical Add-Drop Multiplexer, or ROADM, network, we began to introduce Optical Transport Network, or OTN, to meet the demand of 100 Gbps per wavelength services in 2014. After completing a trial of per-wavelength transmission rates of 200 Gbps, we began to introduce the technology of 200 Gbps per wavelength in our OTN network in 2018 and 400 Gbps per wavelength in 2024. We had deployed 1,284 wavelength for 100 Gbps, 389 wavelength for 200 Gbps and 15 wavelength for 400 Gbps in the OTN network and 21,898 GbE in the PTN network by the end of 2025. 29 As part of our strategic focus on the internet and data markets, our local loop connections mainly adopt FTTx technology. This enables us to provide broadband services, such as MOD, high-speed internet access and VPN. As of December 31, 2025, we have constructed approximately 12.7 million FTTx ports. Our FTTx service can offer high-speed broadband access rates up to 2 Gbps. For low bandwidth demand, we use ADSL technology to provide the internet connection services to our customers. Switching Networks Domestic telecommunications network. Our domestic public switched telephone network currently consists of 19 message areas connected by a long distance network. As of December 31, 2025, we had 38 long distance exchanges, which were interconnection points between our telecommunications network and approximately 9.1 million telephone lines, which reached virtually all homes and businesses in Taiwan. We currently have intelligent networks installed over our public switched telephone networks for our domestic long distance and international networks, as well as a local intelligent network mainly in the Taipei, Taichung and Kaohsiung metropolitan areas. Our intelligent network is designed to facilitate the use of VAS by providing more information about calls and allowing greater management of those calls. As of December 31, 2025, our Next Generation Network, or NGN, core network capacity consisted of approximately 8,600,000 local telephone subscribers, comprising approximately 8,230,000 Session Initiation Protocol-based, or SIP-based, and approximately 370,000 Access Gateway-based, or AG-based, subscribers. Our NGN Managed IP backbone network consists of an inner core network and an outer core network. By the end of 2025, we owned 12 sets of switch routers for the inner core network and 32 sets of switch routers for the outer core network, and the bandwidth of the network was approximately 3,720 Gbps. We believe this network will enable us to meet the increasing demand for NGN services, such as VoIP, and all managed services, including MOD and VPN. International network. Our international infrastructure consists of multiple submarine cables, transmission networks, voice GWs and IP networks, which provide IPLC, IPVPN, Voice and Internet transit service to connect Taiwan and worldwide. In 2018, we started to build SJC2 with several Asian telecom companies. The cable features up to seven pairs of high-capacity optical fiber with a total capacity of 126 Terabits per second. Its high capacity allows it to support high bandwidth intensive requirements, such as IoT, robotics, analytics and AR or VR applications. SJC2 was completed in July 2025, initially built with a 17.1Tbps bandwidth, with future expansions planned according to business needs. In 2021, we joined another consortium cable project called APRICOT to further lay a solid cornerstone for Chunghwa Telecom’s international business plan in the Asia-Pacific region. The northern segment of APRICOT was completed and activated in September 2025, providing an initial capacity of 7.4 Tbps to connect Taiwan with Japan. As of December 31, 2025, we had invested in 30 submarine cables, 14 of which landed in Taiwan. The total invested capacity has reached 60.34 Tbps. Mobile Services Network Our mobile services network consists of: •cell sites, which are physical locations equipped with a base station consisting of transmitters, receivers and other equipment used to communicate through radio channels with customers’ mobile handsets within the range of a cell; •Centralized Radio Access Network, or C-RAN, which splits base stations into two parts, the Radio Remote Unit, or RRU, and the Base Band Unit, or BBU. The RRUs stay at the cell site, while the BBUs are aggregated into a centralized office; •Radio Network Controller, or RNC, for 3G, which connects to, and control, the base station within each cell site; 30 •Mobile Switching Server, or MSS, for 3G, which control the base station controllers and the processing and routing of telephone calls; •Serving GPRS Support Nodes, or SGSN, which connects the GPRS network to the base station controllers; •Mobility Management Entity, or MME, which connects the base station to our 4G/5G core network that is responsible for control side; •Serving Gateway, or S GW, which connects the base stations to our 4G/5G core network that is responsible for data side; •Packet Data Network Gateway, or PDN GW, which connects our 4G/5G core network to the internet; and •transmission lines, which link to the mobile switching service centers, MME, S GW, base station controllers, base stations and the public switched telephone network in connection with the 3G/4G/5G network, and the base station controllers, the support nodes, PDN GW and the internet in connection with the GPRS/4G/5G core network. In May 2014, we launched our 4G mobile broadband services with 10MHz paired spectrum in the 900MHz frequency band and 25MHz paired spectrum in the 1800MHz frequency band. In December 2015, we obtained an additional spectrum for 4G mobile broadband services of 30MHz paired spectrum in the 2500MHz and 2600MHz frequency bands. In November 2017, we further obtained a spectrum for 4G mobile broadband services of 5MHz paired spectrum in the 1800MHz frequency band and 20MHz paired spectrum in the 2100MHz frequency band. In February 2020, we acquired 5G spectrums allocated 90MHz bandwidth in the 3.5GHz frequency band and 600MHz bandwidth in the 28GHz frequency band. In June 2020, we launched 5G mobile broadband services. We use C-RAN architecture to enhance 5G RAN performance and reduce network maintenance costs. In May 2022, we acquired 10MHz paired spectrum in the 900MHz frequency band from Asia Pacific Telecom Co., Ltd. We currently own 40MHz spectrum in the 900MHz frequency band, 60MHz spectrum in the 1800MHz frequency band, 40MHz spectrum in the 2100MHz frequency band, 60MHz spectrum in the 2600MHz frequency band, 90MHz spectrum in the 3500MHz frequency band, and 600MHz spectrum in the 28GHz frequency band, which may provide higher data transmission rates. We have also installed an intelligent network on our existing mobile services network infrastructure, which enables us to provide additional functions, such as prepaid and VPN services as well as a wide range of VAS. Internet Network HiNet, our internet service provider, has the largest internet access network in Taiwan, with 23 points of presence, approximately 3.68 million broadband subscribers and a backbone bandwidth of approximately 29,570 Gbps as of December 31, 2025. We aim to increase HiNet’s points of presence and backbone bandwidth to approximately 31,570 Gbps by the end of 2026. HiNet’s broadband backbone network consists of an inner core network and an outer core network. We had a high-speed internet protocol backbone network by the end of 2025 with 14 sets of switch routers for the inner core network and 36 sets of switch routers for the outer core network. We also built CDN to meet the needs of Internet/OTT services. Our CDN consists of 20 domestic and 3 overseas point-of-presences and the total capacity is approximately 4,460 Gbps as of December 31, 2025. We believe these networks will enable us to meet the increasing demand for our internet services. HiNet’s total international connection bandwidth is 5,890 Gbps as of December 31, 2025. As we expect that internet traffic flows to and from the U.S. will continue to increase, we have been continuously expanding our bandwidth to the U.S. We also endeavor to increase our links to other countries, including Japan, Korea, Hong Kong, Singapore, Mainland China, Malaysia, the United Kingdom, Germany and the Netherlands. 31 Leased Line and Data Switching Networks We operate leased line networks on both a managed and unmanaged basis. In addition, we operate a number of switched digital networks used principally for the provision of packet-switched, frame relay, asynchronous transfer mode technology and a multi-protocol label switching internet protocol VPN. As of December 31, 2025, we had 68 frame relay ports and approximately 159,614 multi-protocol label switching internet protocol VPN virtual ports. Our data networks support a variety of transmission technologies, including frame relay, asynchronous transfer mode and Ethernet technology. We have also built up our HiLink VPN that combines internet protocol and asynchronous transfer mode technologies. The advantage of HiLink VPN based on multi-protocol label switching technology is that it can carry different classes of services, such as video, voice and data, together to provide services with various qualities of service, high-performance transmission and fast-forward solution in an enhanced security network. HiLink VPN can be accessed by xDSL/FTTx/NG-SDH/PTN and can include built-in mechanisms that can deal with overlapping internet protocol addresses. Therefore, the network is potentially less costly and requires less management for business applications. Property, Plant and Equipment Our property, plant and equipment consist mainly of telecommunications equipment, land and buildings located throughout Taiwan. Although we have a significant amount of land and buildings throughout Taiwan, most of our properties are for operational use and only a small part of them are for investment purposes, which were classified as “investment properties” in our consolidated financial statements included in this annual report. Notes 17 and 19 to our consolidated financial statements, included elsewhere in this annual report, provide additional details as to our “Property, plant and equipment” and “Investment properties,” respectively. See “Item 3. Key Information—D. Risk Factors— Risks Relating to Our Company and the Taiwan Telecommunications Industry—Our ability to deliver services may be disrupted due to systems failures, network shutdowns, earthquakes or other natural disasters” for a discussion of environmental issues that may affect utilization of our assets. We continue to revitalize our own assets through rental income focused strategies and explore development opportunities to increase the value of our land and buildings. We received approximately NT$0.9 billion (US$28.21 million) in rental income from properties in 2025. Insurance We do not carry comprehensive insurance for our properties or any insurance for business disruptions. We do, however, maintain in-transit insurance for key materials, such as cables, equipment and equipment components. Employees Please refer to “Item 6. Directors, Senior Management and Employees—D. Employees” for a discussion of our employees. Our Pension Plans Currently, we offer two types of employee retirement plans—our defined contributions plan and defined benefits plan—which are administered in accordance with the Republic of China Labor Standards Act and the Republic of China Labor Pension Act. Legal Proceedings From time to time, we are involved in various legal and arbitration proceedings of a nature considered to be in the ordinary course of our business. It is our policy to provide for reserves related to these legal matters when it is probable that a liability has been incurred and the amount is reasonably estimable. From time to time, we have also been assessed fines by various government agencies, such as the NCC and FTC, but none of these fines has had a significant effect on our financial condition or results of operations. 32 We believe that we had not been involved in any legal or arbitration proceedings during 2023, 2024 and 2025 that would have a significant effect on our financial condition or results of operations; however, we cannot give you any assurance with respect to the ultimate outcome of any asserted claims against us or legal or arbitration proceedings involving us. Capital Expenditures See “Item 5. Operating and Financial Review and Prospects—B. Liquidity and Capital Resources—Capital Expenditures” for a discussion of our capital expenditures. Enforceability of Judgments in Taiwan We are a company limited by shares and incorporated under the ROC Company Act. All of our directors, executive officers and some of the experts named in this annual report are residents of Taiwan and a substantial portion of our assets and the assets of those persons are located in Taiwan. As a result, it may not be possible for investors to effect service of process upon us or those persons outside of Taiwan, or to enforce against them judgments obtained in courts outside of Taiwan. We have been advised by our ROC counsel that in their opinion any final judgment obtained against us in any court other than the courts of the ROC in connection with any legal suit or proceeding arising out of or relating to the ADSs will be enforced by the courts of the ROC without further review of the merits only if the court of the ROC in which enforcement is sought is satisfied that: •the court rendering the judgment has jurisdiction over the subject matter according to the laws of the ROC; •the judgment and the court procedure resulting in the judgment are not contrary to the public order or good morals of the ROC; •the judgment is a final judgment for which the period of appeal has expired or from which no appeal can be taken; •if the judgment was rendered by default by the court rendering the judgment, we, or the above-mentioned persons, were duly served within a reasonable period of time in accordance with the laws and regulations of the jurisdiction of the court or process was served on us with judicial assistance of the ROC; and •judgments at the courts of the ROC are recognized and enforceable in the court rendering the judgment on a reciprocal basis. A party seeking to enforce a foreign judgment in the ROC would, except under limited circumstances, be required to obtain foreign exchange approval from the Central Bank of the Republic of China (Taiwan) for the remittance out of the ROC of any amounts exceeding US$100,000 or its equivalent recovered in respect of such judgment denominated in a currency other than NT dollars. Regulation Regulatory Authorities Prior to March 1, 2006, we were under the supervision of the MOTC and the Directorate General of Telecommunications. On March 1, 2006, the NCC was formed in accordance with the National Communications Commission Organization Act, which was intended to transfer regulatory authority over the Taiwan telecommunications industry from the MOTC and the Directorate General of Telecommunications to the NCC. Under the National Communications Commission Organization Act, the NCC was comprised of seven commissioners, which are full-time positions. The premier of the Executive Yuan shall nominate the commissioners and appoint one of them to serve as chairperson, and one as vice chairperson. The nomination shall be approved and appointed by the Legislative Yuan. The tenure of the commissioners is four years, and the commissioners may be re-appointed to serve a consecutive term once. 33 On August 27, 2022, the Ministry of Digital Affairs was launched to partly take over the administrative authorities formerly held by the NCC, the MOTC and the Executive Yuan, and the Organizational Act of the Ministry of Digital Affairs was enforced on the same day. Telecommunications Management Act The TMA was passed by the Legislative Yuan on May 31, 2019 and promulgated by the President on June 26, 2019. The Executive Yuan issued an ordinance on June 29, 2020 to set the effective date of the TMA (excluding certain articles regarding frequency allocation) on July 1, 2020, and issued an ordinance on October 22, 2020 to set the effective date of the remaining articles of the TMA regarding frequency allocation on November 1, 2020. According to the TMA, within three years upon the enforcement thereof, the existing telecommunications enterprises shall register themselves with the NCC for the transition into being governed by the TMA. We filed an application for the aforementioned transition registration on July 31, 2020, and the application was approved by the NCC on September 30, 2020. The impacts caused by the enforcement of the TMA on us and the telecommunications industry include: (i) reducing the entry barrier to the telecommunications markets by replacing the original concession/approval system with a registration system; (ii) loosening unnecessary restrictions while imposing stricter obligations on enterprises with significance in the specific telecommunications service markets; (iii) regulating the use of private lands and buildings for network infrastructure; and (iv) introducing flexible spectrum mechanisms such as domestic roaming, frequency transferring, leasing, lending, and sharing. Reducing the entry barrier to the telecommunications market: Telecommunications service providers shall register as a telecommunications enterprise with the competent authority for activities including negotiating interconnection, applying for frequency assignments (excluding Article 56 exceptions), assigning Public Switched Telecommunications Network (PSTN) codes, subscriber numbers, leasing/purchasing services with assigned numbers, or providing end-user Internet access. Failure to register results in being ineligible for rights under the TMA. Specifying the obligations of telecommunications enterprises: The TMA categorizes the obligations of telecommunications enterprises into three levels: general obligations, special obligations and designated obligations: (1)General Obligations: The obligations borne by all the telecommunications enterprises that have filed the registration with the NCC including disclosure of service conditions, accounting separation, communication confidentiality, consumer complaint handling, record-keeping, service suspension notification, universal service cost sharing for enterprises meeting the revenue threshold, and interconnection support. (2)Special Obligations: The obligations borne by the telecommunications enterprises that are granted specific resources or determined by the NCC including emergency communications, security maintenance plans, standard service contracts, quality self-evaluations, and co-establishment of consumer dispute mechanisms. (3)Designated Obligations: In order to fulfill the need of policy or competent laws and regulations, relevant competent authorities may designate the telecommunications enterprises which meet certain conditions to take relevant necessary measures, including disaster prevention and assistance, communication security and surveillance, protection of the rights and interests of the people with disabilities and the telecommunications universal services. 34 To meet the need of the rapid-changing market and ensure effective competition in the telecommunications service market, the enterprises under control are changed from dominant market players to the enterprises with significance in the specific telecommunications service market, which are subject to different levels of corrective actions according to the Telecommunications Management Act. The NCC is entitled to adopt control measures for those with market significance in the specific telecommunications service market if necessary, and such measures may be applied to us if we are regarded as having market significance. The opportunity of accessing to and using information may be different due to gender, race, class, geographic area of residence or other factors, which is called the digital divide. The Telecommunications Management Act tries to resolve the problem caused by the digital divide from the following aspects by opening the market, introducing competition and new technology and continuing the promotion of telecommunications universal service. The Telecommunications Management Act removes the restriction on telecommunications network construction imposed by the Telecommunications Act and allows enterprises to establish the telecommunications networks that meet their business needs and develop new technology and equipment. To ensure network and information security, PSTN and telecommunications networks and services provided over the internet are subject to a unified cybersecurity standard and related protection obligations. The Telecommunications Management Act changes the method of frequency allocation specified in the Telecommunications Act, allowing the competent authority to allocate frequency by auction, open tender or other appropriate methods according to the characteristic and purpose of use of the frequency. As a result, the efficiency of the use of frequency can be improved, the development of radio technology can be ensured, and the development of new technology and services of communications can be encouraged. Fair Trade Act According to the TMA, to ensure effective competition in the telecommunications service market, the competent authority is entitled to adopt control measures for those with market significance in the specific telecommunications service market if necessary, including ordering those enterprises to disclose necessary information, conditions, procedures and expenses in terms of interconnection, network access components or use of telecommunications infrastructure; prohibiting those enterprises from making discrimination, setting the service fee that may cause a cross-subsidy, price squeeze or any other abuse of power and hence impede fair competition (including doing so for the subsidiaries, affiliates or partners thereof ); requesting those enterprises to provide interconnection, network access components or relevant telecommunications infrastructure; ordering those enterprises to draw up and publish a template agreement related to the provision of interconnection or network access. By comparison to the TMA, the Fair Trade Act, or the FTA, plays a more comprehensive role in regulating all matters relating to competition between enterprises. The FTA seeks to deter and prevent anti-competitive conduct by granting the powers of the FTC to investigate and to impose penalties. The FTA is administered and enforced by the FTC, which has independent administration rights granted to it under the FTA and is empowered to impose disciplinary actions for fair trade matters. The FTC may initiate an investigation either on its own account in accordance with its discretion granted by the FTA or upon receipt of a complaint. Regulation on Telecommunications Enterprise with Monopoly Status The term “monopoly” used in the FTA refers to the circumstance where an enterprise conducts its business operation in a relevant market without facing any competition or where an enterprise is able to dominate the relevant market and block competition in the market. If there are two or more enterprises within the same market that do not 35 engage in any price competition with each other, the whole group of non-competing enterprises should be deemed as a single monopoly enterprise in the market. The FTC has the ultimate discretion to consider an enterprise as a monopolistic enterprise upon any other events evidencing such enterprise’s capability to affect the supply and demand in relevant markets or eliminate competition. Under the FTA, any enterprise with monopoly status is prohibited from engaging in any of the following activities: •directly or indirectly, by using any unfair method to prevent any other enterprises from competing; •improperly set, maintain or change the price for goods or the remuneration for services; •forcing the enterprise’s trading counterpart to give preferential treatment without justification; or •abusing its market power. If the FTC finds an enterprise liable for violation of regulations governing monopoly, the FTC could impose a monetary fine of not more than NT$100,000,000 each time and order such enterprise to cease such wrongdoing, rectify the conduct or take any necessary corrective action. If the FTC finds such violation serious, it may further impose a monetary fine exceeding NT$100,000,000 but up to 10% of the total sales of the enterprise in the preceding fiscal year. Furthermore, the responsible person of such enterprise who engaged in such wrongdoing may be sentenced to imprisonment of not more than three years if the enterprise fails to follow FTC’s order to cease the wrongdoing, rectify the conduct or take any necessary corrective action. Regulations on Concerted Action (Cartel) in Telecommunication Industry The term “concerted action (cartel),” as used in the FTA, means the competing enterprises at the same production and/or marketing stage, by means of contract, agreement or any other form of mutual understanding, jointly determine the price of goods or services, quantity, technology, products, facilities, trading counterparts, or trading territory with respect to such goods and services, or any other behavior that restrict each other’s business activities, resulting in an impact on the market function with respect to production, trade in goods, or supply and demand of services. The FTC may assume a concerted action exists based on the market condition, the feature of goods or services, cost and profit, and the economic feasibility for enterprises to conduct concerted action. Under the FTA, enterprises are prohibited from engaging in any concerted actions unless the FTC holds the concerted action may be beneficial to the overall economy and public interest. If the FTC finds an enterprise liable for violation of regulations governing concerted action (cartel), the FTC could impose a monetary fine of not more than NT$100,000,000 each time and order such enterprise to cease such wrongdoing, rectify the conduct or take any necessary corrective action. If the FTC finds such violation is serious, it may further impose a monetary fine exceeding NT$100,000,000 but up to 10% of the total sales of the enterprise in the preceding fiscal year. Furthermore, the responsible person of such enterprise who engaged in such wrongdoing may be sentenced to imprisonment of not more than three years if the enterprise fails to follow FTC's order to cease the wrongdoing, rectify the conduct or take any necessary corrective action. Regulations on Restrict Competition in Telecommunication Industry The FTA prohibits any enterprise from conducting any of the following activities that may restrict competition: •forcing another enterprise to discontinue supply, purchase or other business transactions with a particular enterprise for the purpose of injuring such particular enterprise; •treating another enterprise discriminatively without justification; •preventing competitors from participating or engaging in competition by inducing customers with low price or other illegal inducements; 36 •forcing another enterprise to refrain from competing in price, or to take part in a merger, or a concerted action, or to perform vertical restrictions by coercion, inducement with interest, or other improper methods; or •setting improper restrictions on its trading counterparts’ business activity as the condition to reach business engagement. If any enterprise violates the regulations governing unfair competition, the FTC may order it to cease therefrom, rectify its conduct or take necessary corrective action within the time prescribed in the order; in addition, the FTC may assess upon such enterprise an administrative fine of not less than NT$100,000 nor more than NT$50,000,000. Should such enterprise fail to cease therefrom, rectify the conduct or take any necessary corrective action after the lapse of the prescribed period, the FTC may continue to order such enterprise to cease therefrom, rectify the conduct or take any necessary corrective action within the time prescribed in the order, and each time may successively assess thereupon an administrative fine of not less than NT$200,000 nor more than NT$100,000,000 until its ceasing therefrom, rectifying its conduct or taking the necessary corrective action. Regulations on the Representations or Symbols Used by Telecommunications Enterprises on Goods or in Advertisement The FTA prohibits any enterprise from making or using false or misleading representations or symbols as to price, quantity, quality, content, production process, production date, valid period, method of use, purpose of use, place of origin, manufacturer, place of manufacturing, processor, place of processing on goods, or any items which attract customers or in advertisements, or in any other way making known to the public. If an enterprise violates the applicable provisions under the FTA that prohibit false or misleading representations, the FTC may order it to cease therefrom, rectify its conduct or take necessary corrective action within the time prescribed in the order; in addition, the FTC may assess upon such enterprise an administrative fine of not less than NT$50,000 nor more than NT$25,000,000. Should such enterprise fail to cease therefrom, rectify the conduct or take any necessary corrective action after the lapse of the prescribed period, the FTC may continue to order such enterprise to cease therefrom, rectify the conduct or take any necessary corrective action within the time prescribed in the order, and each time may successively assess thereupon an administrative fine of not less than NT$100,000 nor more than NT$50,000,000 until its ceasing therefrom, rectifying its conduct or taking the necessary corrective action. Personal Data Protection Act Under the Personal Data Protection Act, or PDPA, every individual or governmental or non-governmental agencies, including us, should be subject to certain requirements and restrictions for collecting, processing or using personal data. The definition of “personal data” is extended to cover a broad scope, including the name, date of birth, ID number, special features, fingerprints, marital status, family, education, occupation, medical records, medical history, genetic information, sex life, health examination report, criminal records, contact information, financial status, social activities, and any other data which is sufficient to directly or indirectly identify a specific person. If we fail to comply with the PDPA, we may be subject to serious punishment for civil claims, criminal offenses and administrative liabilities: the ceiling of the aggregate compensation amount for damages payable in a single case will be up to NT$200 million or the actual value of loss arising from our violation provided the amount of actual value of such loss is higher than NT$200 million; the defendant may be subject to imprisonment of up to five years; and the penalty for administrative liabilities will be up to NT$500,000 for each violation, and may be imposed consecutively if such violation continues. In May 2023, the PDPA was amended for the establishment of the “Personal Data Protection Commission” as the independent competent authority of the PDPA. For the preparation of the Personal Data Protection Commission, the Executive Yuan established the “Preparatory Office of Personal Data Protection Commission” on December 5, 2023. The power for supervision and enforcement of PDPA will be transferred to the Preparatory Office of Personal Data Protection Commission since January 1, 2024. The Preparatory Office of Personal Data Protection Commission will be dissolved when the Personal Data Protection Commission is formally established. As of December 31, 2025, the Personal Data Protection Commission was not formally established. 37 Corporate Responsibilities: Environmental, Social and Governance (ESG) Initiatives We are dedicated to sustainable environmental, social, and governance practices. To oversee our sustainability efforts and meet stakeholders’ expectations, we established the Sustainable Development and Strategy Committee, a board-level functional committee, in 2023. This committee guides the company in setting sustainable development vision, long-term strategies, and medium- to long-term goals in line with global trends. We also formed the Sustainable Development Promotion Committee, led by the management, which includes four working groups: Environmental Group, Social Group 1, Social Group 2, and Governance Group. Both of the committee and its groups have regular meetings to develop and implement ESG plans and initiatives in alignment with the vision and mission set by the Sustainable Development and Strategy Committee. To advance our corporate sustainability blueprint and underscore our firm commitment to ESG, our President assumes the role of Chief Sustainability Officer, spearheading the implementation of all sustainability initiatives in 2025. Environmental Sustainability While the telecommunications service is a low-pollution industry, as a member of the global community and a telecommunications industry leader in Taiwan, we have come to recognize that energy and resources, wastes, maintenance, and procurement in the operation will lead to certain level of impacts on the environment. To deal with environmental issues and mitigate the influence of climate change, we monitor and seek to incorporate environmental sustainability practices and principles in our operations, products and supply chain. We are committed to achieving net-zero greenhouse gas (GHG) emissions by 2045. Moreover, we joined the EV100 initiative and have to committed to achieving 100% electrification of our directly controlled car fleet by 2030. Furthermore, after officially joining RE100 in May 2023, we committed to using 100% renewable energy for our IDCs by 2030 and for the entire company by 2040. Our environmental sustainability initiatives mainly include: •climate change adaptation strategies: we established the Environmental (E) group, supervised by the Executive Vice President of Technology, to oversee the company’s climate change mitigation and adaptation issues. We focus on environmental sustainability issues and regulatory progress domestically and globally, and actively align ourselves with international management systems and environmental sustainability initiatives. We continuously enhance our climate resilience of telecommunications infrastructure and communication equipment to ensure business continuity, such as planning the emergency backup capacity and adopting dual power supply to achieve uninterrupted operation for critical IDCs. Moreover, we encourage and motivate partners in the upstream and downstream to jointly attain the 1.5°C goal laid out in the Paris Agreement. We are the first telecommunications service provider in Taiwan to join the CDP Supply Chain Program and encourage supplier partners to disclose complete GHG information and plan for carbon reduction actions. •carbon emission investigation: we had completed a group-wide Scope 1 to Scope 3 greenhouse gas (GHG) investigations for the year of 2025, which is currently under review. Over the past few years, we have successfully obtained ISO 14064-1:2018 verification for the respective GHG investigations, ISO-14067 and carbon footprint labels issued by the Ministry of Environment for our specified categories of services and products. Based on 2025 data, our total greenhouse gas emissions for Scope 1, Scope 2 and Scope 3 (Categories 1–6) amounted to 2,468,907.9383 t-CO2e. In addition, we purchased carbon credits in December 2023 and September 2025, and these carbon credits have been utilized to achieve carbon neutrality at our Telecommunication Training Institute in 2025. •carbon emission reduction: Both of our near-term and long-term targets to reduce GHG emissions had been validated by the Science Based Targets initiative, or SBTi. In addition, we have taken a series of actions, such as replacing old equipment and infrastructure, using C-RAN architecture and introducing energy management on a larger scale in operation and maintenance management, to achieve carbon reduction. •internal carbon pricing: we have adopted internal carbon pricing, or ICP, in our company since 2023 with a price of NT$1,600 per tonne of CO2e by considering factors, such as investments in carbon reduction projects, future renewable energy demand, potential implementation of carbon fees in Taiwan and international peers comparison. Our Internal Carbon Pricing (“ICP”) mechanism incorporates the cost of carbon emissions into the performance evaluation framework of our business units. The internal 38 carbon fees collected will be used as a fund to implement our innovative projects and support our carbon reduction initiatives. •renewable energy: in May 2023, we officially joined RE100, committing to achieve 100% renewable energy usage across all operations by 2040. From 2023 to 2025, we had accumulatively procured approximately 235 million kWh. In 2025, our renewable energy procurement and self‑generated power totaled 88.679 million kWh, with an investment of several hundred million NTD in renewable energy procurement during the year. In December 2025, we entered into a 20-year power purchase agreement with GREENET CO., LTD. to secure over 4.6 billion kWh of renewable energy. •sustainable procurement: we adhered to the ISO 20400 Sustainable Procurement Guidelines to incorporate our sustainability principles into procurement practices and have obtained the top-tier Level 5 “Role Model” recognition in 2025. By introducing the “Sustainable Supply Chain Initiative” and establishing the “Supplier Sustainability Grading System,” we leveraged our influence in procurement to encourage suppliers to prioritize sustainability issues, including environmental protection, labor rights, and occupational health and safety. •IOWN initiatives: as a member and board director of IOWN, we are working with global companies to explore multi-domain cutting-edge technologies to achieve better energy efficiency and reduce carbon emissions such as end-to-end all photonic networks and innovative applications. Partnering with Japanese telecom operator, NTT, we have successfully carried out joint telematics performance demonstrations in Japan and Taiwan in 2025, and won the Digital Infrastructure Innovation award at the 2025 Glotel Awards. •biodiversity: we commit to maintaining and fostering biodiversity, avoiding all kinds of deforestation activities and promoting reforestation throughout our operations. In 2025, as we continued advancing our sustainability efforts and published our 2024 TNFD report, we focused on strengthened stakeholder engagement and leveraged AIoT technologies to promote biodiversity conservation through the Hundred Species Restoration Project and the Black-faced Spoonbill Conservation Project, moving toward a Net Positive Impact on biodiversity and No Net Deforestation by 2030. Social Responsibility We have committed to leveraging our technologies and capabilities to practice digital empowerments and providing a safe and healthy work environment to our employees and further contributing to our society. It mainly includes: •employee compensation: we regularly review the salary structure and comprehensively consider factors such as (i) inflation, price indices, and industry salary benchmarks and (ii) our operational condition, financial performance, and employment costs to establish a reasonable and competitive remuneration mechanism. Additionally, we offer incentives and bonus for all employees, which demonstrates our commitment to recognizing employees’ hard work and contributions. •employee happiness: we care for our employees and constantly provide a better working environment to our employees. Our employees who have children aged six or under can enjoy a childcare allowance and can apply for one hour of paid leave per working day. We also offer our employees who take nursing care leave 50% of their labor insurance salary as a subsidy for 18 months after six months government subsidy. Besides, we continue to establish childcare centers for our employees’ children to balance work and family. In addition, we implement an employee stock ownership plan through a trust. When our employees deposit a certain amount of their salary to us, we will offer 30% of the deposit amount as their subsidies. •workplace flexibility: to enhance work flexibility and support talent retention, we introduced “shared offices” across Taiwan and established the R&D related centers in Kaohsiung, and offered employees who wish to return to, or be closer to, their hometowns the option of working in these locations. •equality in our workplace: we commit to creating a workplace with equality and non-discrimination. We launched a series of activities to advocate gender equality and dedicated to promoting the growth of female employees in the workforce. In addition, we have well-established and unimpeded grievance 39 mechanisms for internal employees or external personnel to submit complaint for any discrimination or harassment issues encountered. •occupational safety and health: we commit to complying with laws and other regulations of the health and safety, and encourage our employees to take necessary precautions and immediately report accidents, injuries and unsafe practices or conditions. In addition, we are the first telecommunications service provider in Taiwan to achieve compliance with ISO 45001:2018. •society giveback: we leverage our ICT capabilities to help address the digital divide and support underserved communities. Our key initiatives include the development of a customized system that enables visually impaired individuals to work in call centers, the “Tech4Good Digital Empowerment Ecosystem” designed to enhance digital access and learning opportunities for students in remote areas, and the deployment of our 5G private network to support emergency telemedicine services. In addition to our technology-based initiatives, we actively promote employee volunteerism to encourage direct engagement and contribution to local communities. •anti-fraud achievements: our anti-fraud measures have been at the forefront of the telecommunications industry. For example, we have AI+ICT information and communication technology capabilities to support fraud identification and prevention. In addition, we launched the international fraud calls alerting service to fight against international scam phone calls. We are also in the process of launching anti-fraud voice messages as well as domestic and overseas anti-fraud SMS. From interception to alters and from fixed network to mobile network, we continue to expand protection coverage for telecommunications with an aim to benefit the society. Corporate Governance Our governance practices serve as an essential role in our ability to conduct our operations responsibly and ethically. Our governance practices mainly include: •strategy alignment: we have committed to strong corporate governance that directly aligns with our long-term strategies and financial and operating plans. In the environment of evolving market, we also timely adjust our strategies to optimize our business and enhance our management control. •board diversity: our board of directors is diversified to cover our business operations, operating dynamics and business development, with considerations of diversity in gender, age, nationality, culture and ethnic diversity. Our board possesses relevant competencies, including operational judgment, accounting and finance experience, operating and crisis management skills, industry insight, global market knowledge, leadership skills, decision-making ability and sustainability development capability. We have set concrete objectives to improve board diversity, including maintaining at least one female director on the board and ensuring that members are from various backgrounds. •governance with diversity and inclusion: we have worked to create diversity so that we are more reflective of our society with a range of perspectives to support our business decision-making. Our directors also prioritize inclusion and ensure equal access of all genders and groups of employees to training, career development, nominations for promotions and professional opportunities. •incorporate ESG targets into senior executives’ compensation: since 2022, we have linked part of our senior executives’ performance-based compensation to the Company's ESG goals to ensure their decisions align with investors’ long-term interests. Each year, the proportion of compensation tied to our ESG targets has increased, along with the number of employees covered. By 2025, 30% of performance-based compensation was directly linked to ESG targets for all senior executives. •incentive compensation clawback policy: this policy states that the Company should recover erroneously awarded compensation which any portion of such incentive compensation is received by the covered executives during the last three full fiscal years or any applicable transition period preceding the date that the Company is required to restate its financial statements which resulting from the issuer’s material noncompliance with any financial reporting requirement under securities laws. •anti-corruption practices: In 2024, we have introduced ISO 37001 Anti-Bribery Management System to ensure compliance with relevant legal requirements in our daily operations. By establishing preventive 40 and monitoring mechanisms, we aim to mitigate legal risks and penalties associated with corruptive conducts. In November 2024, we entrusted a third-party agency to perform the audit and successfully passed it. •sustainable finance: we consider ESG factors in our investment decisions to ensure our targets align with specific ESG objectives. In August 2025, we issued a sustainability bond (unsecured corporate bond) of NT$3.5 billion (approximately US$0.1 billion). The proceeds were used to finance business developments, including investments for environmental protection and social development. Through this sustainable finance instrument, we are playing an important role in sustainability efforts and fulfilling our green commitments. For further information on our ESG initiatives, please visit our annual Sustainability ESG Report, publicly available on our ESG website at: https://www.cht.com.tw/en/home/cht/esg/esg-report/sustainability-esg-report. The information contained on our website is not incorporated herein by reference and does not constitute part of this annual report. C. Organizational Structure Set forth below is a diagram indicating our organizational structure as of March 31, 2026. Please refer to Exhibit 8.1 for the subsidiaries’ jurisdiction of incorporation. D. Property, Plant and Equipment Please refer to “—B. Business Overview” for a discussion of our property, plant and equipment.