Interim report
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Taiwan Mobile Co. , Ltd. and Subsidiaries Consolidated Financial Statements for the Six Months Ended June 30 , 2026 and 2025 and Independent Auditors ' Review Report
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INDEPENDENT AUDITORS’ REVIEW REPORT The Board of Directors and Stockholders Taiwan Mobile Co., Ltd. Introduction We have reviewed the accompanying consolidated balance sheets of Taiwan Mobile Co., Ltd. and its subsidiaries (collectively, the “G roup” ) as of June 30, 2026 and 2025, the related consolidated statements of comprehensive income for the three months and the six months ended June 30, 2026 and 2025, the consolidated statements of changes in equity and cash flows for the six months then ended, and the related notes to the consolidated financial statements, including material accounting policy information (collectively r eferred to as the “c onsolidated financial statements” ). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “I nterim Financial Reporting” e ndorsed and issued into effect by t he Financial Supervisory C ommission of the Republic of China. Our responsibility i s to express a conclusion on the consolidated financial statements based on our reviews. Scope of Review We conducted our reviews in accordance with the Standards on Review Engagements of the Republic of China 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A r eview of consolidated financial statements consists of making inquiries, primarily o f persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our reviews, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of June 30, 2026 and 2025, and of its consolidated financial performance for the three months ended June 30, 2026 and 2025, and its consolidated financial performance and its consolidated cash flows for the six months then ended in accordance with the “R egulations Governing the Preparation of Financial Reports by S ecurities Issuers” a nd International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. - 1 -
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The engagement partners on the reviews resulting in this independent auditors’ review report are Te-Chen Cheng and Wen-Ling Liu. Deloitte & Touche Taipei, Taiwan Republic of China August 5, 2026 Notice to Readers The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China (ROC) and not those of any other jurisdictions. The standards, procedures and practices to review such consolidated financial statements are those generally applied in the ROC. For the convenience of readers, the independent auditors’ r eview report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the ROC. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language auditors’ review report and consolidated financial statements shall prevail. - 2 -
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TAIWAN MOBILE CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In Thousands of New Taiwan Dollars) June 30, 2026 December 31, 2025 June 30, 2025 ASSETS Amount % Amount % Amount % CURRENT ASSETS Cash and cash equivalents (Notes 6 and 29) $ 12,123,124 5 $ 8,565,239 4 $ 12,217,755 5 Financial assets at fair value through profit or loss 6,919 - 27,876 - 25,352 - Financial assets at fair value through other comprehensive income (Note 7) 307,673 - 283,758 - 293,562 - Financial assets at amortized cost 94,854 - 92,666 - 144,645 - Contract assets (Note 22) 8,026,392 3 8,134,704 3 7,168,447 3 Notes and accounts receivable, net (Note 8) 10,229,833 4 9,454,914 4 9,142,179 4 Notes and accounts receivable due from related parties (Note 29) 425,247 - 412,959 - 445,116 - Other receivables (Note 29) 3,760,019 2 3,891,942 2 3,546,444 2 Inventories (Note 9) 6,771,906 3 8,633,656 4 7,040,732 3 Prepayments (Note 29) 1,729,034 1 1,023,515 - 1,246,382 - Non-current assets held for sale (Note 10) 17,653 - - - - - Other financial assets (Notes 29 and 30) 1,791,965 1 1,993,784 1 2,061,493 1 Other current assets 179,912 - 203,172 - 157,397 - Total current assets 45,464,531 19 42,718,185 18 43,489,504 18 NON-CURRENT ASSETS Financial assets at fair value through profit or loss 1,805,143 1 1,690,594 1 1,910,662 1 Financial assets at fair value through other comprehensive income (Note 7) 4,145,273 2 3,905,763 2 4,008,632 2 Financial assets at amortized cost - - - - 85,441 - Contract assets (Note 22) 7,597,602 3 7,808,914 3 7,771,007 3 Investments accounted for using equity method (Notes 10 and 29) 10,051,499 4 6,876,788 3 6,395,070 3 Property, plant and equipment (Notes 12 and 29) 48,766,069 21 50,606,383 22 50,943,178 22 Right-of-use assets (Notes 13 and 29) 14,727,163 6 13,101,119 6 11,282,721 5 Investment properties (Note 14) 2,164,520 1 2,141,929 1 2,111,146 1 Concessions (Notes 15 and 30) 57,702,472 24 60,599,971 26 63,497,470 27 Goodwill (Note 15) 33,228,022 14 33,228,022 14 33,228,022 14 Other intangible assets (Notes 15 and 29) 5,547,614 3 5,694,255 2 5,779,993 2 Deferred tax assets 1,017,938 - 1,035,517 - 1,006,353 - Incremental costs of obtaining a contract (Note 22) 2,320,793 1 2,434,927 1 2,548,355 1 Net defined benefit assets 226,235 - 215,826 - 191,017 - Other financial assets (Notes 29 and 30) 379,357 - 377,999 - 377,374 - Other non-current assets (Notes 16 and 29) 2,249,419 1 2,223,375 1 2,049,166 1 Total non-current assets 191,929,119 81 191,941,382 82 193,185,607 82 TOTAL $ 237,393,650 100 $ 234,659,567 100 $ 236,675,111 100 June 30, 2026 December 31, 2025 June 30, 2025 LIABILITIES AND EQUITY Amount % Amount % Amount % CURRENT LIABILITIES Short-term borrowings (Note 17) $ 8,600,000 4 $ 11,200,000 5 $ 12,585,000 5 Short-term notes and bills payable (Note 17) 10,491,613 4 6,891,162 3 4,695,920 2 Contract liabilities (Note 22) 2,596,291 1 2,163,953 1 2,385,274 1 Notes and accounts payable 14,328,173 6 14,645,624 6 12,739,787 5 Notes and accounts payable due to related parties (Note 29) 317,243 - 263,157 - 290,855 - Dividends payable (Note 21) 15,975,696 7 - - 15,386,881 7 Other payables (Note 29) 9,894,719 4 11,625,298 5 10,441,399 5 Current tax liabilities 2,693,648 1 2,252,874 1 2,160,001 1 Provisions (Note 19) 78,639 - 96,105 - 103,069 - Lease liabilities (Notes 13, 26 and 29) 4,373,067 2 4,184,922 2 3,990,589 2 Advance receipts 255,897 - 156,291 - 194,330 - Long-term liabilities, current portion (Notes 17 and 18) 11,911,548 5 3,611,222 2 1,312,620 - Other current liabilities (Note 29) 5,004,026 2 5,075,375 2 4,679,642 2 Total current liabilities 86,520,560 36 62,165,983 27 70,965,367 30 NON-CURRENT LIABILITIES Financial liabilities at fair value through profit or loss (Note 18) 36,182 - 59,658 - 62,158 - Contract liabilities (Note 22) 337,579 - 356,807 - 358,539 - Bonds payable (Note 18) 28,997,295 12 38,924,358 17 38,833,215 16 Long-term borrowings (Note 17) 12,021,236 5 22,491,269 9 25,501,022 11 Provisions (Note 19) 1,975,866 1 1,926,221 1 1,651,896 1 Deferred tax liabilities 1,584,542 1 1,491,182 1 1,427,365 1 Lease liabilities (Notes 13, 26 and 29) 10,664,030 4 9,101,807 4 7,377,656 3 Net defined benefit liabilities 58,667 - 62,899 - 69,699 - Guarantee deposits 1,422,070 1 1,375,678 - 1,329,786 1 Other non-current liabilities 1,716,969 1 2,154,457 1 2,529,105 1 Total non-current liabilities 58,814,436 25 77,944,336 33 79,140,441 34 Total liabilities 145,334,996 61 140,110,319 60 150,105,808 64 EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT (Note 21) Common stock 37,232,618 16 37,232,618 16 37,232,618 16 Advance receipts for share capital 1,692 - - - - - Capital surplus 29,149,201 12 29,032,105 12 29,027,763 12 Retained earnings Legal reserve 37,544,559 16 36,113,578 15 36,113,578 15 Special reserve 966,556 - 135,582 - 135,582 - Unappropriated earnings 8,697,232 4 14,309,874 6 6,944,095 3 Other equity interests ( )901,899 - ( )966,556 - ( )678,280 - Treasury stock ( )28,214,022 ( )12 ( )29,717,344 ( )12 ( )29,717,344 ( )13 Total equity attributable to owners of the Corporation 84,475,937 36 86,139,857 37 79,058,012 33 NON-CONTROLLING INTERESTS 7,582,717 3 8,409,391 3 7,511,291 3 Total equity 92,058,654 39 94,549,248 40 86,569,303 36 TOTAL $ 237,393,650 100 $ 234,659,567 100 $ 236,675,111 100 The accompanying notes are an integral part of the consolidated financial statements. - 3 -
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TAIWAN MOBILE CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Amount % Amount % Amount % Amount % OPERATING REVENUES (Notes 22, 29 and 35) $ 49,432,376 100 $ 47,471,015 100 $ 99,210,679 100 $ 95,638,368 100 OPERATING COSTS (Notes 9, 29, 32 and 35) 38,476,085 78 37,465,716 79 77,521,993 78 75,747,951 79 GROSS PROFIT FROM OPERATIONS 10,956,291 22 10,005,299 21 21,688,686 22 19,890,417 21 OPERATING EXPENSES (Notes 29, 32 and 35) Marketing 3,149,948 7 3,217,764 7 6,324,049 6 6,375,251 7 Administrative 1,659,105 3 1,639,567 3 3,316,747 3 3,273,408 4 Research and development 229,112 - 197,193 1 450,724 1 386,212 - Expected credit loss 80,017 - 96,182 - 139,832 - 185,557 - Total operating expenses 5,118,182 10 5,150,706 11 10,231,352 10 10,220,428 11 OTHER INCOME AND EXPENSES, NET 281,092 - 313,891 1 594,613 1 648,053 1 OPERATING INCOME (Note 35) 6,119,201 12 5,168,484 11 12,051,947 13 10,318,042 11 NON-OPERATING INCOME AND EXPENSES Interest income (Note 29) 75,073 - 81,948 - 113,565 - 128,492 - Other income 29,850 - 16,609 - 41,861 - 24,951 - Other gains and losses, net (Note 23) 97,245 - ( )349,971 ( )1 92,721 - ( )255,548 - Finance costs (Notes 23 and 35) ( )366,600 - ( )384,623 ( )1 ( )755,956 ( )1 ( )768,764 ( )1 Share of gain (loss) of associates accounted for using equity method 94,171 - 21,252 - 173,712 - 17,335 - Total non-operating income and expenses ( )70,261 - ( )614,785 ( )2 ( )334,097 ( )1 ( )853,534 ( )1 PROFIT BEFORE TAX 6,048,940 12 4,553,699 9 11,717,850 12 9,464,508 10 INCOME TAX EXPENSE (Note 24) 1,138,226 2 882,555 2 2,280,895 2 1,647,404 2 NET PROFIT 4,910,714 10 3,671,144 7 9,436,955 10 7,817,104 8 OTHER COMPREHENSIVE INCOME (LOSS) (Notes 21 and 24) Items that will not be reclassified subsequently to profit or loss: Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income ( )7,809 - ( )152,059 - 28,482 - ( )319,505 - Share of other comprehensive income (loss) of associates accounted for using equity method ( )14,844 - ( )62,442 - ( )7,252 - ( )165,088 - Items that may be reclassified subsequently to profit or loss: Exchange differences on translation ( )14,671 - ( )63,384 - 38,017 - ( )53,735 - Share of other comprehensive income (loss) of associates accounted for using equity method ( )2,074 - ( )53,504 - 3,743 - ( )45,290 - Other comprehensive income (loss) (after tax) ( )39,398 - ( )331,389 - 62,990 - ( )583,618 - TOTAL COMPREHENSIVE INCOME $ 4,871,316 10 $ 3,339,755 7 $ 9,499,945 10 $ 7,233,486 8 NET PROFIT ATTRIBUTABLE TO: Owners of the parent $ 4,538,819 9 $ 3,289,190 6 $ 8,685,140 9 $ 6,944,389 7 Non-controlling interests 371,895 1 381,954 1 751,815 1 872,715 1 $ 4,910,714 10 $ 3,671,144 7 $ 9,436,955 10 $ 7,817,104 8 TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: Owners of the parent $ 4,512,373 9 $ 3,003,755 6 $ 8,761,804 9 $ 6,402,653 7 Non-controlling interests 358,943 1 336,000 1 738,141 1 830,833 1 $ 4,871,316 10 $ 3,339,755 7 $ 9,499,945 10 $ 7,233,486 8 EARNINGS PER SHARE (Note 25) Basic earnings per share $ 1.49 $ 1.09 $ 2.86 $ 2.30 Diluted earnings per share $ 1.46 $ 1.07 $ 2.80 $ 2.27 The accompanying notes are an integral part of the consolidated financial statements. - 4 -
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TAIWAN MOBILE CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars) Equity Attributable to Owners of the Parent Other Equity Interests Unrealized Gain (Loss) on Financial Assets at Fair Value Advance Retained Earnings Exchange Through Other Common Stock Receipts for Share Capital Capital Surplus Legal Reserve Special Reserve Unappropriated Earnings Differences on Translation Comprehensive Income Treasury Stock Total Non-controlling Interests Total Equity BALANCE, JANUARY 1, 2025 $ 37,232,618 $ - $ 29,337,376 $ 34,716,971 $ - $ 13,966,321 $( )18,142 $( )117,440 $( )29,717,344 $ 85,400,360 $ 8,528,034 $ 93,928,394 Distribution of 2024 earnings Legal reserve - - - 1,396,607 - ( )1,396,607 - - - - - - Special reserve - - - - 135,582 ( )135,582 - - - - - - Cash dividends - - - - - ( )12,434,064 - - - ( )12,434,064 - ( )12,434,064 Total distribution of earnings - - - 1,396,607 135,582 ( )13,966,253 - - - ( )12,434,064 - ( )12,434,064 Cash dividends from capital surplus - - ( )1,176,232 - - - - - - ( )1,176,232 - ( )1,176,232 Profit for the six months ended June 30, 2025 - - - - - 6,944,389 - - - 6,944,389 872,715 7,817,104 Other comprehensive income (loss) for the six months ended June 30, 2025 - - - - - - ( )69,450 ( )472,286 - ( )541,736 ( )41,882 ( )583,618 Total comprehensive income (loss) for the six months ended June 30, 2025 - - - - - 6,944,389 ( )69,450 ( )472,286 - 6,402,653 830,833 7,233,486 Equity component of convertible bonds issued by the Company - - 851,347 - - - - - - 851,347 - 851,347 Disposal of investments in equity instruments designated at fair value through other comprehensive income by associates - - - - - 962 - ( )962 - - - - Changes in equity of associates accounted for using equity method - - 28,721 - - ( )1,324 - - - 27,397 - 27,397 Disposal of investments accounted for using equity method - - ( )13,449 - - - - - - ( )13,449 - ( )13,449 Cash dividends for non-controlling interests of subsidiaries - - - - - - - - - - ( )1,847,576 ( )1,847,576 BALANCE, JUNE 30, 2025 $ 37,232,618 $ - $ 29,027,763 $ 36,113,578 $ 135,582 $ 6,944,095 $( )87,592 $( )590,688 $( )29,717,344 $ 79,058,012 $ 7,511,291 $ 86,569,303 BALANCE, JANUARY 1, 2026 $ 37,232,618 $ - $ 29,032,105 $ 36,113,578 $ 135,582 $ 14,309,874 $( )49,992 $( )916,564 $( )29,717,344 $ 86,139,857 $ 8,409,391 $ 94,549,248 Distribution of 2025 earnings Legal reserve - - - 1,430,981 - ( )1,430,981 - - - - - - Special reserve - - - - 830,974 ( )830,974 - - - - - - Cash dividends - - - - - ( )12,047,834 - - - ( )12,047,834 - ( )12,047,834 Total distribution of earnings - - - 1,430,981 830,974 ( )14,309,789 - - - ( )12,047,834 - ( )12,047,834 Cash dividends from capital surplus - - ( )2,469,815 - - - - - - ( )2,469,815 - ( )2,469,815 Profit for the six months ended June 30, 2026 - - - - - 8,685,140 - - - 8,685,140 751,815 9,436,955 Other comprehensive income (loss) for the six months ended June 30, 2026 - - - - - - 38,964 37,700 - 76,664 ( )13,674 62,990 Total comprehensive income (loss) for the six months ended June 30, 2026 - - - - - 8,685,140 38,964 37,700 - 8,761,804 738,141 9,499,945 Conversion of convertible bonds to common stock - 1,692 17,034 - - - - - - 18,726 - 18,726 Disposal of TWM’s shares by subsidiary recognized as treasury stock transactions - - 2,492,685 - - - - - 1,503,322 3,996,007 - 3,996,007 Disposal of investments in equity instruments designated at fair value through other comprehensive income - - - - - 11,776 - ( )11,776 - - - - Changes in equity of associates accounted for using equity method - - 77,192 - - 231 - ( )231 - 77,192 - 77,192 Cash dividends for non-controlling interests of subsidiaries - - - - - - - - - - ( )1,561,957 ( )1,561,957 Changes in non-controlling interests - - - - - - - - - - ( )2,858 ( )2,858 BALANCE, JUNE 30, 2026 $ 37,232,618 $ 1,692 $ 29,149,201 $ 37,544,559 $ 966,556 $ 8,697,232 $( )11,028 $( )890,871 $( )28,214,022 $ 84,475,937 $ 7,582,717 $ 92,058,654 The accompanying notes are an integral part of the consolidated financial statements. - 5 -
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TAIWAN MOBILE CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) For the Six Months Ended June 30 2026 2025 CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax $ 11,717,850 $ 9,464,508 Adjustments for: Depreciation expense 7,472,422 7,533,799 Amortization expense 3,326,286 3,291,434 Amortization of incremental costs of obtaining a contract 844,868 922,496 Loss (gain) on disposal and retirement of property, plant and equipment, net ( )12,309 128,995 Gain on disposal of property, plant and equipment held for sale - ( )1,689 Expected credit loss 139,832 185,557 Other income and expenses ( )490,113 ( )553,608 Finance costs 755,956 768,764 Interest income ( )113,565 ( )128,492 Dividend income ( )38,463 ( )23,385 Valuation loss (gain) on financial assets at fair value through profit or loss ( )70,716 108,350 Valuation gain on financial liabilities at fair value through profit or loss ( )23,362 ( )9,700 Share of gain of associates accounted for using equity method ( )173,712 ( )17,335 Loss (gain) on disposal of investments accounted for using equity method 57 ( )17,015 Others ( )5,960 26,252 Changes in operating assets and liabilities Contract assets 320,242 ( )928,712 Notes and accounts receivable ( )909,931 ( )318,103 Notes and accounts receivable due from related parties ( )12,288 40,690 Other receivables 334,458 464,577 Inventories 1,873,564 1,792,875 Prepayments ( )716,798 ( )251,695 Other current assets 15,439 36,022 Other financial assets 81,202 ( )143,414 Incremental costs of obtaining a contract ( )730,734 ( )853,946 Contract liabilities 413,110 ( )59,640 Notes and accounts payable ( )317,451 ( )518,985 Notes and accounts payable due to related parties 54,086 52,113 Other payables ( )831,353 ( )1,261,139 Provisions ( )3,707 ( )47,673 Advance receipts 99,548 52,736 Other current liabilities ( )71,349 118,105 Net defined benefit plans ( )14,641 ( )15,157 Cash inflows generated from operating activities 22,912,468 19,837,585 Interest received 7,412 16,970 Interest paid ( )1,025 ( )1,062 Income taxes paid ( )1,728,409 ( )2,015,795 Net cash generated from operating activities 21,190,446 17,837,698 (Continued) - 6 -
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TAIWAN MOBILE CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) For the Six Months Ended June 30 2026 2025 CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property, plant and equipment $( )4,096,251 $( )5,397,073 Acquisition of right-of-use assets ( )14,873 ( )22,593 Acquisition of intangible assets ( )253,937 ( )264,028 Increase in prepayments for equipment ( )114,850 ( )220,688 Proceeds from disposal of property, plant and equipment 65,135 66,303 Proceeds from disposal of property, plant and equipment held for sale - 10,730 Increase (decrease) in advance receipts from asset disposals 58 ( )103 Acquisition of financial assets at fair value through profit or loss ( )36,245 ( )51,085 Proceeds from financial assets at fair value through profit or loss 4,297 - Acquisition of financial assets at fair value through other comprehensive income ( )289,525 ( )250,000 Disposal of financial assets at fair value through other comprehensive income 61,628 - Proceeds from capital reduction of financial assets at fair value through profit or loss 6,000 3,169 Acquisition of investments accounted for using equity method ( )3,099,813 ( )75,150 Increase in prepayments for investment - ( )59,999 Disposal of investments accounted for using equity method - 25,573 Other investing activities 169,758 34,339 Increase in refundable deposits ( )155,177 ( )284,046 Decrease in refundable deposits 177,663 262,886 Increase in other financial assets ( )34,499 ( )296,593 Decrease in other financial assets 153,346 524,667 Interest received 102,742 119,327 Other dividends received 9,484 7,539 Net cash used in investing activities ( )7,345,059 ( )5,866,825 CASH FLOWS FROM FINANCING ACTIVITIES Decrease in short-term borrowings ( )2,600,000 ( )6,705,000 Decrease in short-term notes and bills payable ( )7,869,314 ( )391,037 Proceeds from issuance of bonds - 13,708,805 Repayment of bonds - ( )14,000,000 Proceeds from long-term borrowings - 1,510,584 Repayment of long-term borrowings ( )678,155 ( )2,690,925 Repayment of the principal portion of lease liabilities ( )2,303,294 ( )2,191,627 Increase in guarantee deposits received 103,187 46,798 Decrease in guarantee deposits received ( )58,075 ( )69,796 (Continued) - 7 -
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TAIWAN MOBILE CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) For the Six Months Ended June 30 2026 2025 Proceeds from disposal of treasury stock $ 3,996,007 $ - Cash dividends paid to non-controlling interests of subsidiaries ( )103,911 ( )70,835 Interest paid ( )772,792 ( )845,487 Changes in non-controlling interests ( )2,858 - Net cash used in financing activities ( )10,289,205 ( )11,698,520 EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 1,703 ( )282 NET INCREASE IN CASH AND CASH EQUIVALENTS 3,557,885 272,071 CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD 8,565,239 11,945,684 CASH AND CASH EQUIVALENTS AT END OF THE PERIOD $ 12,123,124 $ 12,217,755 The accompanying notes are an integral part of the consolidated financial statements. (Concluded) - 8 -
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TAIWAN MOBILE CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 2026 AND 2025 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) 1. ORGANIZATION AND OPERATIONS Taiwan Mobile Co., Ltd. (TWM) was incorporated in Taiwan, the Republic of China (ROC) on February 25, 1997. TWM’s stock was listed on the ROC Over-the-Counter Securities Exchange (currently known as The Taipei Exchange, TPEx) on September 19, 2000. On August 26, 2002, TWM’s stock was shifted to be listed on the Taiwan Stock Exchange. TWM is mainly engaged in the rendering of mobile telecommunications, the sale of mobile phones and accessories, games and value-added services. TWM received a second-generation mobile telecommunications concession operation license issued by the Directorate General of Telecommunications (DGT) of the ROC. The license allows TWM to provide services for 15 years from 1997 onwards. The 2G concession license had been renewed by the National Communications Commission (NCC) and expired on June 30, 2017. TWM received a third-generation concession license issued by the DGT in March 2005, and the 3G concession license expired on December 31, 2018. TWM participated in the mobile spectrum auctions held by NCC for the need of long-term business development and from April 2014 to June 2018 acquired the concession licenses for the fourth- generation mobile broadband spectrum in the 700MHz, 1800MHz and 2100MHz frequency bands separately, and the aforementioned licenses are valid until December 2030 and December 2033, respectively. In June 2020, TWM acquired the concession licenses for the fifth-generation mobile broadband spectrum in the 3500MHz and 28000MHz frequency bands, and the aforementioned licenses are valid until December 2040. To expand the business scale and boost the operating performance and competitiveness, TWM merged with Taiwan Star Telecom Corporation Limited (TST). The merger was completed on December 1, 2023, and TST was the dissolved company. Since that date, TWM has acquired the licensed spectrum in the 900MHz, 2100MHz, 2600MHz, and 3500MHz frequency bands. The accompanying consolidated financial statements comprise of TWM and its subsidiaries (collectively, the “Group”). 2. APPROVAL OF THE CONSOLIDATED FINANCIAL STATEMENTS The Board of Directors approved the consolidated financial statements on August 5, 2026. 3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS a. Initial application of new accounting policies Liability classification of funds raised through the revolving commercial paper issuances The Group has entered into a multi-year revolving commercial paper issuance agreement with a financial institution. Under this agreement, commercial papers are issued with maturities and are reissued on a revolving basis upon maturity, with interest payments made each cycle but no principal repayment required at maturity. As the Group does not have the right at the end of the reporting period (reporting date) to defer settlement of these liabilities for at least twelve months after the reporting date, and as given that the substance of the transaction is the repayment of maturing commercial papers through the issuance of new ones, such liabilities shall be classified as current liabilities in accordance with the Q&A issued by the Accounting Research and Development Foundation (ARDF). In accordance with the Q&A issued by the Financial Supervisory Commission (FSC), the Group applies these requirements to commercial papers issued on a revolving basis on or after January 1, 2026. See Note 17c. for the details. - 9 -
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b. Application of the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRS Accounting Standards”) endorsed and issued into effect by the FSC Application of the IFRS Accounting Standards endorsed and issued into effect by the FSC did not have any material impact on the Group’s accounting policies. c. The IFRS Accounting Standards issued by International Accounting Standards Board (IASB) and endorsed by the FSC for application starting from 2027 New, Amended and Revised Standards and Interpretations Effective Date Announced by IASB IFRS 18 “Presentation and Disclosure in Financial Statements” January 1, 2027 (Note 1) IFRS 19 “Subsidiaries without Public Accountability: Disclosures” January 1, 2027 Amendments to IAS 28 “Amendments to the Fair Value Option for Investments in Associates and Joint Ventures” January 1, 2027 (Note 2) Note 1: IFRS 18 will take effect starting from January 1, 2028 for domestic entities. Earlier application is permitted. Note 2: An entity shall apply the amendments when it applies IFRS 18. IFRS 18 “Presentation and Disclosure in Financial Statements”and consequential amendments IFRS 18 will supersede IAS 1” Presentation of Financial Statements”. The main changes comprise: To classify items of income and expenses presented in the statement of profit or loss into the operating, investing, financing, income taxes and discontinued operations categories, the Group shall assess whether it has specified main business activities of investing in particular types of assets and providing financing to customers. The statement of profit or loss shall present totals and subtotals for operating profit or loss, profit or loss before financing and income taxes and profit or loss. Provides guidance to enhance the requirements of aggregation and disaggregation: The Group shall identify the assets, liabilities, equity, income, expenses and cash flows that arise from individual transactions or other events and shall classify and aggregate them into groups based on shared characteristics, so as to result in the presentation in the primary financial statements of line items that have at least one similar characteristic. The Group shall disaggregate items with dissimilar characteristics in the primary financial statements and in the notes. The Group labels items as ‘other’ only if it cannot find a more informative label. Disclosures on Management-defined Performance Measures (MPMs): When in public communications outside financial statements and communicating to users of financial statements management’s view of an aspect of the financial performance of the Group as a whole, the Group shall disclose related information about its MPMs in a single note to the financial statements, including the description of such measures, calculations, reconciliations to the subtotal or total specified by IFRS Accounting Standards and the income tax and non-controlling interests effects of related reconciliation items. - 10 -
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In addition, the following consequential amendments have been made to IAS 7 “S tatement of Cash Flows”: The Group shall use operating profit or loss as the starting point when presenting cash flows from operating activities under the indirect method. Interest and dividends received by the Group shall be classified as investing activities, while interest and dividends paid shall be classified as financing activities. However, if, after assessment, the Group has a specific main operating activity, it shall determine how to classify dividends received, interest received and interest paid in the statement of cash flows by referring to how it classifies dividend income, interest income and interest expense in the statement of profit or loss. The total of each of these cash flows shall be classified in a single category in the statement of cash flows. The Group has decided not to apply IFRS 18 and consequential amendments earlier. Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing impacts of the above amended standards and interpretations on the Group’s financial position and financial performance and will disclose the relevant impact when the assessment is completed. d. The IFRS Accounting Standards in issue by IASB but not yet endorsed and issued into effect by the FSC New, Amended and Revised Standards and Interpretations Effective Date Announced by IASB Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between An Investor and Its Associate or Joint Venture” To be determined by IASB As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the impacts of the above amended standards and interpretations on the Group’s financial position and financial performance and will disclose the relevant impact when the assessment is completed. 4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION Except for the following description, the material accounting policies adopted for the consolidated financial statements a re the same as those adopted for the consolidated financial statements for the year ended December 31, 2025. a. Statement of Compliance The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS 34 Interim Financial Reporting endorsed and issued into effect by the FSC. The consolidated financial statements do not include all the information which should be disclosed in the annual consolidated financial statements in accordance with the IFRSs Accounting Standards endorsed and issued into effect by the FSC. b. Basis of Consolidation 1) The basis of preparation of the consolidated financial statements is the same as that of the consolidated financial statements for the year ended December 31, 2025. - 11 -
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2) The subsidiaries included in the consolidated financial statements were as follows: Percentage of Ownership Investor Subsidiary Main Business and Products June 30, 2026 December 31, 2025 June 30, 2025 Note TWM Taiwan Cellular Co., Ltd. (TCC) Investment 100.00% 100.00% 100.00% Note 1 Wealth Media Technology Co., Ltd. (WMT) Investment 100.00% 100.00% 100.00% - TWM Taipei New Horizon Co., Ltd. (TNH) Building and operating Songshan Cultural and Creative Park BOT project 49.90% 49.90% 49.90% - Fu Sheng Digital Co., Ltd. (FSD) Virtual asset platform and transaction service provider 100.00% 100.00% 100.00% - TWM Power Co., Ltd. (TPC) Information software services 100.00% 100.00% 100.00% - FullSynergy New Retail Co., Ltd. (FSNR) Branding agency and retail sales 100.00% 100.00% 100.00% - Taiwan Mobile Film Co., Ltd. (TWMFM) Film production 100.00% 100.00% 100.00% - TCC Taiwan Fixed Network Co., Ltd. (TFN) Fixed-line service provider 100.00% 100.00% 100.00% Note 1 Taiwan Teleservices & Technologies Co., Ltd. (TT&T) Call center service and telephone marketing 100.00% 100.00% 100.00% - Taiwan Digital Service Co., Ltd. (TDS) Commissioned maintenance services 100.00% 100.00% 100.00% - Taihsin Property Insurance Agent Co., Ltd. (TPIA) Property insurance agent 100.00% 100.00% 100.00% - Tai-Fu Cloud Technology Co., Ltd. (TFC) Cloud and information services 100.00% 100.00% 100.00% - TCCI Investment and Development Co., Ltd. (TID) Investment 100.00% 100.00% 100.00% Note 1 WMT TFN Media Co., Ltd. (TFNM) Broadcasting and TV program distribution and investment in cable TV service providers, etc 100.00% 100.00% 100.00% - Global Forest Media Technology Co., Ltd. (GFMT) Investment 100.00% 100.00% 100.00% - Global Wealth Media Technology Co., Ltd. (GWMT) Investment 100.00% 100.00% 100.00% - Win TV Broadcasting Co., Ltd. (WTVB) TV program provider 100.00% 100.00% 100.00% - momo.com Inc. (momo) Wholesale, retail, and retail sale no storefront 45.01% 45.01% 45.01% - FSNR Preparatory office of Full81 Co., Ltd. (Preparatory office of F81) Branding agency and retail sales 100.00% - - Note 2 TWMFM Taiwan Stampede Franchise Film Co., Ltd. (SFF) Film production 100.00% 100.00% 100.00% - - 12 -
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Percentage of Ownership Investor Subsidiary Main Business and Products June 30, 2026 December 31, 2025 June 30, 2025 Note TFNM Yeong Jia Leh Cable TV Co., Ltd. (YJCTV) Cable TV service provider 100.00% 100.00% 100.00% - Mangrove Cable TV Co., Ltd. (MCTV) Cable TV service provider 29.53% 29.53% 29.53% Note 3 Phoenix Cable TV Co., Ltd. (PCTV) Cable TV service provider 100.00% 100.00% 100.00% - Union Cable TV Co., Ltd. (UCTV) Cable TV service provider 99.22% 99.22% 99.22% - Globalview Cable TV Co., Ltd. (GCTV) Cable TV service provider 92.38% 92.38% 92.38% - GFMT UCTV Cable TV service provider 0.76% 0.76% 0.76% - GWMT GCTV Cable TV service provider 6.83% 6.83% 6.83% - momo Asian Crown International Co., Ltd. (Asian Crown) Investment 81.99% 81.99% 81.99% Note 4 Honest Development Co., Ltd. (Honest Development) Investment 100.00% 100.00% 100.00% - Fuli Insurance Agent Co., Ltd. (FI) Comprehensive insurance agent 100.00% 100.00% 100.00% - Fu Sheng Travel Service Co., Ltd. (FST) Travel agent 100.00% 100.00% 100.00% - Fu Sheng Logistics Co., Ltd. (FSL) Logistics and transport 100.00% 100.00% 100.00% - MFS Co., Ltd. (MFS) Wholesaling 100.00% 100.00% 100.00% - Prosperous Living Co., Ltd. (Prosperous Living) Wholesale and retail sales 73.62% 73.62% 73.62% - Bebe Poshe International Co., Ltd. (Bebe Poshe) Wholesale of cosmetics - - 100.00% Note 5 Asian Crown Fortune Kingdom Corporation (Fortune Kingdom) Investment 100.00% 100.00% 100.00% Note 4 Fortune Kingdom Hong Kong Fubon Multimedia Technology Co., Ltd. (HK Fubon Multimedia) Investment 100.00% 100.00% 100.00% Note 4 Honest Development Hongkong Yue Numerous Investment Co., Ltd. (HK Yue Numerous) E-commerce portals and investment 100.00% 100.00% 100.00% - HK Yue Numerous Shenzhen Hbo Information Advisory Co., Ltd. (Shenzhen Hbo) Information services and investment 100.00% 100.00% 100.00% - HK Fubon Multimedia Fubon Gehua (Beijing) Enterprise Ltd. (FGE) Wholesaling - - 93.55% Note 5 Note 1: TCC, TFN, and TID collectively owned 663,404 t housand shares of TWM, representing 17.82% of the total shares outstanding as of June 30, 2026. Note 2: The incorporation registration was completed on July 2, 2026. Note 3: The other 70.47% of shares were held under trustee accounts. - 13 -
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Note 4: The subsidiaries were resolved to be dissolved by their Board of Directors and are currently in the process of liquidation. Note 5: The liquidation process was completed in 2025. 3) Subsidiaries excluded from the consolidated financial statements: None. c. Employee Benefits Defined benefit pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior fiscal year. d. Income Tax Income tax expense represents the sum of the tax currently payable and deferred tax. The interim period income tax expense is accrued using the tax rate that would be applicable to expected total annual earnings, that is, the estimated average annual effective income tax rate applied to the profit before tax of the interim period. 5. MATERIAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY The same material accounting judgments and key sources of estimation uncertainty have been followed when preparing these interim consolidated financial statements as those that were applied in the preparation of the consolidated financial statements for the year ended December 31, 2025. 6. CASH AND CASH EQUIVALENTS June 30, 2026 December 31, 2025 June 30, 2025 Cash on hand and revolving funds $ 59,905 $ 79,697 $ 122,907 Cash in banks 8,498,352 6,856,205 8,082,491 Time deposits 2,966,873 1,034,233 1,984,350 Government bonds with repurchase rights and short-term notes and bills 597,994 595,104 2,028,007 $ 12,123,124 $ 8,565,239 $ 12,217,755 7. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME June 30, 2026 December 31, 2025 June 30, 2025 Investments in equity instruments-current Domestic investments Listed stocks $ 307,552 $ 283,643 $ 293,424 Foreign investments Listed stocks 121 115 138 $ 307,673 $ 283,758 $ 293,562 - 14 -
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June 30, 2026 December 31, 2025 June 30, 2025 Investments in equity instruments - non- current Domestic investments Listed stocks $ 526,424 $ 290,728 $ 313,998 Unlisted stocks 1,325,975 1,352,256 1,360,900 Foreign investments Unlisted stocks 2,292,874 2,262,779 2,333,734 $ 4,145,273 $ 3,905,763 $ 4,008,632 These investments in equity instruments are held for medium to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at fair value through other comprehensive income (FVTOCI) a s they believed that recognizing short-term fluctuations from these investments’ fair value in profit or loss would not be consistent with the Group’s strategy of holding these investments for long-term purposes. 8. NOTES AND ACCOUNTS RECEIVABLE, NET June 30, 2026 December 31, 2025 June 30, 2025 Notes receivable $ 6,553 $ 19,347 $ 9,462 Accounts receivable 10,676,333 9,909,373 9,629,529 Less: Allowance for impairment loss ( )453,053 ( )473,806 ( )496,812 $ 10,229,833 $ 9,454,914 $ 9,142,179 The main credit terms range from 30 to 90 days. The Group serves a large consumer base for its telecommunications business; therefore, the concentration of credit risk is limited. When entering into transactions with customers, the Group c onsiders the record of arrears in the past. In addition, the Group may also collect some telecommunication charges in advance to reduce the risk of payment arrears in subsequent periods. The Group a dopted a policy of only trading with corporate counterparties with a considerable scale of operations, certain credit ratings and financial conditions for telecommunications service and products. In addition to examining publicly available financial information and its own historical transaction experience, the Group obtains collateral where necessary to mitigate the risk of loss arising from default. The Group continues to monitor the credit exposure and financial and credit conditions of its counterparties, and spreads the total amount of the transactions among qualified counterparties. In order to mitigate credit risk, the management of the Group h as delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure the recoverability of receivables. In addition, the Group r eviews the recoverable amount of trade receivables at balance sheet dates to ensure that adequate allowance is provided for possible irrecoverable amounts. In this regard, the management believes the Group’s credit risk could be reasonably reduced. The Group measures the loss allowance for trade receivables at an amount equal to lifetime expected credit losses (ECLs). The ECLs on trade receivables are estimated using a provision matrix approach considering the past default records of the customers and an analysis of the customers’ current financial positions, as well as industry-specific factors and relevant macroeconomic indicators. As the Group’ s h istorical credit loss experience does not show significantly different loss patterns for different customer segments, the provision matrix does not distinguish customer segments. As a result, the expected credit loss rate is based on the number of past due days of trade receivables. - 15 -
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The Group writes off a trade receivable when there is evidence indicating that the counterparty is in severe financial difficulty and the trade receivable is considered uncollectible. For trade receivables that have been written off, the Group continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss. Movements of the loss allowance for notes and accounts receivable by individual and collective assessment were as follows: June 30, 2026 Overdue Not Past Due 1 to 120 Days 121 to 365 Days Over 365 Days Total Gross carrying amount $ 9,543,410 $ 905,137 $ 232,023 $ 2,316 $ 10,682,886 Loss allowance (Lifetime ECLs) ( )74,299 ( )160,033 ( )216,405 ( )2,316 ( )453,053 Amortized cost $ 9,469,111 $ 745,104 $ 15,618 $ - $ 10,229,833 December 31, 2025 Overdue Not Past Due 1 to 120 Days 121 to 365 Days Over 365 Days Total Gross carrying amount $ 8,836,052 $ 834,564 $ 255,629 $ 2,475 $ 9,928,720 Loss allowance (Lifetime ECLs) ( )71,228 ( )159,098 ( )241,005 ( )2,475 ( )473,806 Amortized cost $ 8,764,824 $ 675,466 $ 14,624 $ - $ 9,454,914 June 30, 2025 Overdue Not Past Due 1 to 120 Days 121 to 365 Days Over 365 Days Total Gross carrying amount $ 8,574,983 $ 777,998 $ 284,305 $ 1,705 $ 9,638,991 Loss allowance (Lifetime ECLs) ( )71,217 ( )160,487 ( )263,403 ( )1,705 ( )496,812 Amortized cost $ 8,503,766 $ 617,511 $ 20,902 $ - $ 9,142,179 For the aforementioned periods, the expected credit loss rates ranged from 0.02%~83.33% f or trade receivables not past due and past due within 120 days, and from 65.5%~100% for trade receivables past due over 120 days. Movements of the loss allowance of notes and accounts receivable were as follows: For the Six Months Ended June 30 2026 2025 Beginning balance $ 473,806 $ 487,947 Add: Provision 141,593 177,236 Recovery 37,331 35,537 Less: Write-off ( )199,677 ( )203,908 Ending balance $ 453,053 $ 496,812 9. INVENTORIES June 30, 2026 December 31, 2025 June 30, 2025 Merchandise $ 6,759,883 $ 8,622,026 $ 7,028,868 Materials for maintenance 12,023 11,630 11,864 $ 6,771,906 $ 8,633,656 $ 7,040,732 - 16 -
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For the three months and the six months ended June 30, 2026, the cost of goods sold related to inventories amounted to $28,595,004 thousand and $57,757,259 thousand, respectively, which included the reversal of inventory write-down totaling $18,465 thousand and $226 thousand, respectively. For the three months and the six months ended June 30, 2025, the cost of goods sold related to inventories amounted to $27,749,491 thousand and $56,409,339 thousand, respectively, which included the inventory write-down totaling $2,195 thousand and $3,272 thousand, respectively. 10. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD Associates, which were not individually material and were accounted for using equity method, were as follows: June 30, 2026 December 31, 2025 June 30, 2025 Investee Company Amount % of Ownership Amount % of Ownership Amount % of Ownership Systex Corporation (SYSTEX) $ 4,095,961 11.86 $ 4,082,641 11.86 $ 3,927,100 11.86 PACM CPT Media Limited (PACM) 3,078,594 30.00 - - - - AppWorks Ventures Co., Ltd. (AppWorks) 270,965 51.00 257,837 51.00 258,023 51.00 AppWorks Fund III Co., Ltd. (AppWorks Fund III) 475,096 20.14 474,019 20.14 501,727 20.14 AppWorks Fund IV L.P. (AppWorks Fund IV) 312,728 16.64 297,547 16.64 282,708 17.52 Uspace Tech Co., Ltd. (Uspace) 258,179 28.80 235,170 31.76 253,755 31.76 NADA Holdings Corp. (NADA) 124,544 17.88 103,929 17.65 99,660 18.64 Tropics Entertainment Co., Ltd. (Tropics) 52,247 40.00 56,040 40.00 56,218 40.00 Fubon Green Power Co., Ltd. (Fubon Green Power) 591,320 15.00 594,320 15.00 598,404 15.00 WeMo (Cayman) Corp. (WeMo) 379,642 17.28 387,209 17.28 - - Bronci Technology Inc. (Bronci) 73,877 23.79 73,376 23.85 - - Global Home Shopping Co., Ltd. (GHS) 251,606 20.00 225,228 20.00 261,090 20.00 kbro Media Co., Ltd. (kbro Media) 46,937 33.58 50,122 33.58 55,435 33.58 Mistake Entertainment Co., Ltd. (M.E.) 35,636 11.33 34,689 11.33 33,627 11.33 SK Biomedical INC. (SK Biomedical) 4,167 20.00 4,661 20.00 5,273 20.00 Wei Xiang Corp. (WeMo TW) - - - - 62,050 28.13 $ 10,051,499 $ 6,876,788 $ 6,395,070 - 17 -
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a. SYSTEX In September 2024, the Group acquired 11.86% e quity interest of SYSTEX, and has significant influence on SYSTEX due to having representation on its Board of Directors. b. AppWorks In September 2019, the Group acquired 51% equity interest of AppWorks. The Group has no control over AppWorks due to its holding less than half number of seats on AppWorks’ Board of Directors. Therefore, the Group only has significant influence on AppWorks and accounts for its investment in AppWorks as an associate of the Group, under the equity-method of accounting. c. AppWorks Fund III In April 2020, the Group acquired 19.46% e quity interest of AppWorks Fund III. The Group has significant influence on AppWorks Fund III since the president of TWM serves as the chairman of AppWorks Fund III. The Group’s percentage of ownership interest in AppWorks Fund III increased to 20.14% due to non-proportionate subscription to AppWorks Fund III’s issuance of new capital stock. d. AppWorks Fund IV As of December 2022, the Group subscribed 32.86% e quity of AppWorks Fund IV a nd became the single largest limited partner. Since the management, control, operation and decision-making of the limited partnerships investments were executed by general partner, the Group had no control over AppWorks Fund IV b ut retained significant influence. Due to the non-proportionate subscription to AppWorks Fund IV's capital increase, the percentage of ownership interest in AppWorks Fund IV decreased, and was no longer the single largest limited partner. e. Uspace From October to November 2022, the Group acquired 32.9% equity interest of Uspace. Although the Group was the single largest stockholder of Uspace, it only obtained one out of five seats of the Board of Directors. In addition, the management considered the size of ownership interest and the dispersion of shares owned by other stockholders, the other holdings were not extremely dispersed. Therefore, the Group has no control over Uspace but retains significant influence. The Group’ s percentage of ownership interest in Uspace decreased due to non-proportionate subscription to Uspace’s issuance of new capital stock. In June 2026, the Group resolved to dispose of a portion of its equity interest of Uspace. Accordingly, the portion expected to be disposed of was reclassified as non-current assets held for sale. f. NADA In December 2021, the Group acquired 37.93% e quity interest of NADA. Due to the disposal of a portion of its equity interest of NADA in March 2025 and non-proportionate subscription to NADA’s issuance of new capital stock, the percentage of ownership interest in NADA decreased. The Group has significant influence on NADA due to having representation on its Board of Directors. g. Fubon Green Power In June 2024, TWM and momo acquired 10% and 5% equity interest of Fubon Green Power, respectively, resulting in the Group’s ownership percentage of 15%. The Group has significant influence on Fubon Green Power due to having representation on its Board of Directors. h. WeMo In October 2025, the Group acquired 17.28% equity interest of WeMo, and has significant influence on WeMo due to having representation on its Board of Directors. - 18 -
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i. GHS In June 2015, the Group acquired 20% equity interest of GHS through its subsidiary. As the Group did not participate in GHS’s capital increase in October 2015, its percentage of ownership interest in GHS decreased to 18%. In January 2016, its percentage of ownership interest in GHS increased to 20% due to the acquisition of an additional 2% equity interest of GHS. j. WeMo TW In October 2025, the Group disposed of all of its equity interest of WeMo TW. 11. SUBSIDIARIES WITH MATERIAL NON-CONTROLLING INTERESTS Proportion of Non-controlling Interests’ Ownership and Voting Rights Subsidiary June 30, 2026 December 31, 2025 June 30, 2025 momo %54.99 %54.99 %54.99 For information on the principal place of business and the company’s country of registration, see Table 6. The summarized financial information of momo and its subsidiaries had taken into account the adjustments to acquisition-date fair value, and reflected the amounts before eliminations of intercompany transactions as follows: June 30, 2026 December 31, 2025 June 30, 2025 Current assets $ 12,678,504 $ 11,030,302 $ 13,539,826 Non-current assets 23,522,463 23,492,236 22,734,922 Current liabilities ( )18,463,668 ( )15,118,436 ( )18,023,776 Non-current liabilities ( )1,877,066 ( )2,140,872 ( )2,485,986 Equity $ 15,860,233 $ 17,263,230 $ 15,764,986 Equity attributable to: Owners of the parent $ 10,288,776 $ 10,919,555 $ 10,245,489 Non-controlling interests of momo 5,489,609 6,260,097 5,436,735 Non-controlling interests of momo’s subsidiaries 81,848 83,578 82,762 $ 15,860,233 $ 17,263,230 $ 15,764,986 For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Operating revenue $ 27,092,750 $ 26,030,870 $ 53,686,216 $ 52,436,026 Profit $ 630,651 $ 652,017 $ 1,275,559 $ 1,511,605 Other comprehensive income (loss) ( )23,554 ( )83,510 ( )24,868 ( )76,115 Comprehensive income $ 607,097 $ 568,507 $ 1,250,691 $ 1,435,490 - 19 -
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For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Profit attributable to: Owners of the parent $ 283,403 $ 293,509 $ 573,199 $ 680,424 Non-controlling interests of momo 346,174 358,517 700,155 831,128 Non-controlling interests of momo’s subsidiaries 1,074 ( )9 2,205 53 $ 630,651 $ 652,017 $ 1,275,559 $ 1,511,605 Comprehensive income attributable to: Owners of the parent $ 272,801 $ 255,951 $ 562,005 $ 646,190 Non-controlling interests of momo 333,222 312,643 686,481 789,313 Non-controlling interests of momo’s subsidiaries 1,074 ( )87 2,205 ( )13 $ 607,097 $ 568,507 $ 1,250,691 $ 1,435,490 For the Six Months Ended June 30 2026 2025 Net cash generated from operating activities $ 3,425,896 $ 1,756,395 Net cash used in investing activities ( )519,055 ( )1,094,060 Net cash used in financing activities ( )381,169 ( )428,294 Effect of exchange rate changes 1,703 ( )282 Net increase in cash $ 2,527,375 $ 233,759 12. PROPERTY, PLANT AND EQUIPMENT Land Buildings Telecommuni- cations Equipment and Machinery Others Construction in Progress and Equipment to be Inspected Total Cost Balance, January 1, 2026 $ 11,297,535 $ 8,674,189 $ 116,478,049 $ 10,322,873 $ 4,423,095 $ 151,195,741 Additions - - 92,163 112,301 3,057,246 3,261,710 Disposals and retirements ( )6,957 ( )9,891 ( )3,719,239 ( )216,037 ( )4 ( )3,952,128 Reclassification ( )22,371 ( )17,504 2,857,671 111,583 ( )2,957,713 ( )28,334 Balance, June 30, 2026 $ 11,268,207 $ 8,646,794 $ 115,708,644 $ 10,330,720 $ 4,522,624 $ 150,476,989 Accumulated depreciation and impairment Balance, January 1, 2026 $ - $ 2,880,201 $ 88,786,941 $ 8,922,216 $ - $ 100,589,358 Depreciation - 122,942 4,538,082 363,260 - 5,024,284 Disposals and retirements - ( )5,477 ( )3,673,149 ( )214,615 - ( )3,893,241 Reclassification - ( )9,481 - - - ( )9,481 Balance, June 30, 2026 $ - $ 2,988,185 $ 89,651,874 $ 9,070,861 $ - $ 101,710,920 Carrying amount, January 1, 2026 $ 11,297,535 $ 5,793,988 $ 27,691,108 $ 1,400,657 $ 4,423,095 $ 50,606,383 Carrying amount, June 30, 2026 $ 11,268,207 $ 5,658,609 $ 26,056,770 $ 1,259,859 $ 4,522,624 $ 48,766,069 - 20 -
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Land Buildings Telecommuni- cations Equipment and Machinery Others Construction in Progress and Equipment to be Inspected Total Cost Balance, January 1, 2025 $ 11,337,067 $ 8,656,679 $ 124,950,727 $ 10,078,230 $ 3,064,860 $ 158,087,563 Additions - 19,048 88,065 145,999 4,305,069 4,558,181 Disposals and retirements - ( )140 ( )13,074,230 ( )159,493 - ( )13,233,863 Reclassification ( )2,636 ( )1,817 3,367,850 205,729 ( )3,510,034 59,092 Balance, June 30, 2025 $ 11,334,431 $ 8,673,770 $ 115,332,412 $ 10,270,465 $ 3,859,895 $ 149,470,973 Accumulated depreciation and impairment Balance, January 1, 2025 $ - $ 2,636,095 $ 94,966,958 $ 8,684,070 $ - $ 106,287,123 Depreciation - 122,711 4,827,921 364,818 - 5,315,450 Disposals and retirements - ( )140 ( )12,916,432 ( )158,773 - ( )13,075,345 Reclassification - 567 - - - 567 Balance, June 30, 2025 $ - $ 2,759,233 $ 86,878,447 $ 8,890,115 $ - $ 98,527,795 Carrying amount, June 30, 2025 $ 11,334,431 $ 5,914,537 $ 28,453,965 $ 1,380,350 $ 3,859,895 $ 50,943,178 Property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives as follows: Buildings Primary buildings 20-55 years Mechanical and electrical equipment 5-15 years Telecommunications equipment and machinery 1-20 years Others 1-15 years 13. LEASE ARRANGEMENTS a. Right-of-use assets June 30, 2026 December 31, 2025 June 30, 2025 Carrying amount Land $ 603,443 $ 605,138 $ 613,464 Buildings 13,595,525 11,992,468 10,212,059 Telecommunications equipment and machinery 403,717 377,714 384,342 Others 124,478 125,799 72,856 $ 14,727,163 $ 13,101,119 $ 11,282,721 - 21 -
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For the Six Months Ended June 30 2026 2025 Additions to right-of-use assets $ 4,208,806 $ 2,539,247 For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Depreciation charge for right-of- use assets Land $ 65,872 $ 66,262 $ 131,899 $ 132,830 Buildings 1,106,795 1,000,317 2,217,231 1,995,002 Telecommunications equipment and machinery 28,054 26,434 56,171 52,834 Others 17,645 14,948 35,034 29,982 $ 1,218,366 $ 1,107,961 $ 2,440,335 $ 2,210,648 Except for the aforementioned additions and recognized depreciation, the Group did not have significant sublease or impairment of right-of-use assets during the six months ended June 30, 2026 and 2025. b. Lease liabilities June 30, 2026 December 31, 2025 June 30, 2025 Carrying amount Current $ 4,373,067 $ 4,184,922 $ 3,990,589 Non-current $ 10,664,030 $ 9,101,807 $ 7,377,656 Range of discount rates for lease liabilities was as follows: June 30, 2026 December 31, 2025 June 30, 2025 Land 0.62%~1.83% 0.61%~1.83% 0.61%~1.71% Buildings 0.62%~4.06% 0.61%~4.06% 0.61%~1.71% Telecommunications equipment and machinery 0.63%~1.83% 0.63%~1.83% 0.79%~1.44% Others 0.62%~1.83% 0.62%~1.83% 0.62%~1.71% c. Material lease-in activities and terms The Group leases base transceiver stations and machine rooms, stores, offices, warehouses, maintenance centers, equipment, etc., with most of the lease terms ranging from 1 to 6 years. The Group does not have bargain purchase options to acquire the leasehold assets at the end of the lease terms. In addition, the Group is prohibited from subleasing all or any portion of the underlying assets without the lessors’ consents in some lease agreements. The Group c an early terminate the arrangements if there are any controversial or other incidental matters that will cause the leasehold assets not being able to meet the purposes of use. - 22 -
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d. Other lease information For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Expenses related to short-term leases $ 9,951 $ 9,919 $ 19,651 $ 19,717 Expenses related to low-value asset leases $ 10,010 $ 14,310 $ 20,889 $ 29,350 Expenses related to variable lease payments and not included in the measurement of lease liabilities $ 7,710 $ 6,972 $ 14,743 $ 15,828 For the Six Months Ended June 30 2026 2025 Total cash outflow for leases $ 2,454,024 $ 2,352,332 14. INVESTMENT PROPERTIES The fair values of investment properties were measured using Level 3 inputs, arising from income approach, comparative approach, and cost approach adopted by a third party real estate appraiser, HomeBan Appraisers Joint Firm. As of June 30, 2026, December 31, 2025 a nd June 30, 2025, the fair values of investment properties were $5,940,820 t housand, $5,798,899 t housand and $5,666,640 t housand, respectively, and the capitalization rates for the aforementioned financial reporting periods were all ranged from 0.96%~4.07%, respectively. The amounts of depreciation recognized for the three months and the six months ended June 30, 2026 and 2025 were $3,935 thousand, $3,851 thousand, $7,803 thousand and $7,701 thousand, respectively. The maturity analysis of lease payments receivable under operating leases of investment properties was as follows: June 30, 2026 December 31, 2025 June 30, 2025 Year 1 $ 99,605 $ 109,431 $ 111,920 Year 2 86,649 88,588 96,463 Year 3 53,842 75,957 85,229 Year 4 12,437 29,336 52,873 Year 5 7,239 7,836 11,603 Year 6 and thereafter 9,417 12,949 16,480 $ 269,189 $ 324,097 $ 374,568 - 23 -
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15. INTANGIBLE ASSETS Concessions Other Intangible Assets Concession Licenses Service Concessions Goodwill Customer Relationships Operating Rights Trademarks Computer Software and Others Total Cost Balance, January 1, 2026 $ 92,149,830 $ 8,180,078 $ 33,228,022 $ 3,599,602 $ 1,382,000 $ 2,495,133 $ 5,124,799 $ 146,159,464 Additions - - - - - 40 252,462 252,502 Disposals and retirements - - - - - - ( )281,955 ( )281,955 Reclassification - - - - - - 29,644 29,644 Balance, June 30, 2026 $ 92,149,830 $ 8,180,078 $ 33,228,022 $ 3,599,602 $ 1,382,000 $ 2,495,173 $ 5,124,950 $ 146,159,655 Accumulated amortization and impairment Balance, January 1, 2026 $ 37,447,597 $ 2,282,340 $ - $ 2,571,758 $ - $ 853 $ 4,334,668 $ 46,637,216 Amortization 2,808,139 89,360 - 96,174 - 35 332,578 3,326,286 Disposals and retirements - - - - - - ( )281,955 ( )281,955 Balance, June 30, 2026 $ 40,255,736 $ 2,371,700 $ - $ 2,667,932 $ - $ 888 $ 4,385,291 $ 49,681,547 Carrying amount, January 1, 2026 $ 54,702,233 $ 5,897,738 $ 33,228,022 $ 1,027,844 $ 1,382,000 $ 2,494,280 $ 790,131 $ 99,522,248 Carrying amount, June 30, 2026 $ 51,894,094 $ 5,808,378 $ 33,228,022 $ 931,670 $ 1,382,000 $ 2,494,285 $ 739,659 $ 96,478,108 Cost Balance, January 1, 2025 $ 92,149,830 $ 8,180,078 $ 33,254,687 $ 3,599,602 $ 1,382,000 $ 2,495,133 $ 4,938,680 $ 146,000,010 Additions - - - - - - 276,633 276,633 Disposals and retirements - - - - - - ( )265,360 ( )265,360 Reclassification - - - - - - 75,363 75,363 Balance, June 30, 2025 $ 92,149,830 $ 8,180,078 $ 33,254,687 $ 3,599,602 $ 1,382,000 $ 2,495,133 $ 5,025,316 $ 146,086,646 Accumulated amortization and impairment Balance, January 1, 2025 $ 31,831,319 $ 2,103,621 $ 26,665 $ 2,379,410 $ - $ 787 $ 4,213,285 $ 40,555,087 Amortization 2,808,139 89,359 - 96,174 - 33 297,729 3,291,434 Disposals and retirements - - - - - - ( )265,360 ( )265,360 Balance, June 30, 2025 $ 34,639,458 $ 2,192,980 $ 26,665 $ 2,475,584 $ - $ 820 $ 4,245,654 $ 43,581,161 Carrying amount, June 30, 2025 $ 57,510,372 $ 5,987,098 $ 33,228,022 $ 1,124,018 $ 1,382,000 $ 2,494,313 $ 779,662 $ 102,505,485 The above intangible assets are amortized on a straight-line basis over their estimated useful lives as follows: Concession licenses 14-21 years Service concessions 44-50 years Customer relationships 17-20 years Trademarks 10 years Computer software 1-10 years Other intangible assets Copyrights Amortized over the broadcast period a. Service concessions On January 15, 2009, TNH signed a BOT contract with the Taipei City Government. Under the BOT contract, TNH obtained the right to build and operate a development project located at the old Songshan Tobacco Plant. The development concession premium of superficies is amortized on a straight-line basis during the contract period, and the construction costs are amortized on a straight-line basis from the completion date of the construction to the BOT contract expiry date. - 24 -
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b. Customer relationships, operating rights, and trademarks The Group measures the fair value of acquired assets when acquisitions occur, and identifies the fair value and amortization periods of the intangible assets which conform to materiality and related standards. Although some of the intangible assets such as operating rights and trademarks have legal useful lives, which can be extended, the Group regards these assets as intangible assets with indefinite useful lives. 1) On April 17, 2007, TFN, one of TWM’s wholly-owned subsidiaries, acquired more than 50% of the former Taiwan Fixed Network Co., Ltd. (former TFN) through a public tender offer. TWM split the former TFN and its subsidiaries into two cash-generating units, i.e., fixed network services and cable television and broadband business. Accordingly, customer relationships and operating rights were identified and separately disclosed. 2) On July 13, 2011, WMT, one of TWM’s wholly-owned subsidiaries, acquired control over momo. In the assessment of momo’s retail business, based on the analysis results, trademarks were identified and separately disclosed. 3) On December 1, 2023, TWM completed the absorption merger with TST. In the assessment of TST’ s mobile communication services, based on the analysis results, customer relationships were identified and separately disclosed. c. Goodwill The carrying amounts of goodwill allocated to the cash-generating units were as follows: June 30, 2026 December 31, 2025 June 30, 2025 Mobile communication services $ 24,620,850 $ 24,620,850 $ 24,620,850 Fixed network services 357,970 357,970 357,970 Retail business 4,979,566 4,979,566 4,979,566 Cable television and broadband business 3,269,636 3,269,636 3,269,636 $ 33,228,022 $ 33,228,022 $ 33,228,022 d. Impairment of assets See Note 15.d. to the consolidated financial statements for the year ended December 31, 2025 for the related information on impairment of assets. There was no significant evidence indicating impairment of intangible assets as of June 30, 2026. 16. OTHER NON-CURRENT ASSETS June 30, 2026 December 31, 2025 June 30, 2025 Long-term accounts receivable $ 163,342 $ 167,847 $ 145,693 Refundable deposits 1,207,907 1,231,462 872,998 Other prepayments 414,383 345,503 507,083 Prepayments for investment - 14,119 59,999 Others 463,787 464,444 463,393 $ 2,249,419 $ 2,223,375 $ 2,049,166 - 25 -
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17. BORROWINGS a. Short-term borrowings June 30, 2026 December 31, 2025 June 30, 2025 Unsecured loans $ 8,600,000 $ 11,200,000 $ 12,585,000 Annual interest rates 1.7%~1.83% 1.72%~1.8% 1.77%~1.934461% For the information on endorsements and guarantees, see Note 31.b. b. Short-term notes and bills payable June 30, 2026 December 31, 2025 June 30, 2025 Short-term notes and bills payable $ - $ 6,900,000 $ 4,700,000 Less: Discounts on short-term notes and bills payable - ( )8,838 ( )4,080 $ - $ 6,891,162 $ 4,695,920 Annual interest rates - 1.608%~1.618% 1.608%~1.648% c. Commercial papers payable - revolving credit facilities June 30, 2026 December 31, 2025 June 30, 2025 Commercial papers payable - current $ 10,500,000 $ - $ - Commercial papers payable -non-current - 11,500,000 11,500,000 Less: Discounts on commercial papers payable ( )8,387 ( )8,274 ( )2,109 Less: Current portion - ( )1,998,602 - $ 10,491,613 $ 9,493,124 $ 11,497,891 Annual interest rates 1.8872%~1.9972% 1.8197%~1.9297% 1.8137%~1.9237% TWM’s commercial papers payable are treated as revolving credit facilities under the contracts. The last repayment date of the commercial papers payable is in February 2028. In accordance with the Q&A "Transition Requirements of the ARDF Q&A - Liability Classification of Funds Raised Through The Revolving Issuance of Commercial Papers" issued by the FSC on August 15, 2025, these commercial papers were classified as current liabilities from the date of the revolving issuance in January 2026. d. Long-term borrowings June 30, 2026 December 31, 2025 June 30, 2025 Unsecured loans $ 12,600,000 $ 13,200,000 $ 13,800,000 Secured loans 1,338,915 1,417,070 1,523,380 Less: Unamortized expenses on unsecured loans ( )5,059 ( )6,305 ( )7,629 Less: Current portion ( )1,912,620 ( )1,612,620 ( )1,312,620 $ 12,021,236 $ 12,998,145 $ 14,003,131 Annual interest rates: Unsecured loans 1.9147% 1.9137% 1.9137% Secured loans 2.3526% 2.3526% 2.105%~2.3526% - 26 -
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1) Unsecured loans To repay existing loans from financial institutions and enhance mid-term working capital, TWM entered into a syndicated loan with a joint credit agreement with six banks, including Bank of Taiwan and Mega International Commercial Bank on November 16, 2023. The credit limit was set at $15,000,000 thousand, with a credit period of 5 years. From December 13, 2023, the first installment would be due after 12 months, followed by subsequent installments every 6 months, totaling 9 repayment periods. The agreement stipulates the specific financial covenants, such as maintaining a certain net debt ratio, interest coverage ratio, operating EBITDA etc. throughout the loan term. 2) Secured loans TNH entered into a syndicated loan agreement, with respect to the investment under the aforementioned BOT contract. The credit agreement originally signed in 2017 had been terminated in advance. In 2023, TNH signed another credit agreement with Bank of Taiwan for a credit am ount and a guarantee amount totaling $2,558,000 thousand with interest payments made on a regular basis. The maturity date of the main agreement is in November 2030. Certain loan agreements allow for revolving utilization within the financing limit, and the maturity date is disclosed based on the expiration date of the revolving utilization agreement. In accordance with the loan agreement, the regular financial covenants, e.g., current ratio, equity ratio, and interest protection multiples, must be complied with during the loan term. For property under the BOT contract and its superficies that have been pledged as collateral, see Note 30. 18. BONDS PAYABLE June 30, 2026 December 31, 2025 June 30, 2025 6th domestic unsecured straight corporate bonds $ 14,997,008 $ 14,996,024 $ 14,995,023 7th domestic unsecured straight corporate bond 2,498,972 2,498,722 2,498,467 1st domestic unsecured straight corporate bond in 2023 6,497,217 6,496,487 6,495,746 1st domestic unsecured straight corporate bond in 2024 1,998,324 1,998,067 1,997,807 1st domestic unsecured straight corporate bond in 2025 3,696,737 3,696,314 3,695,884 4th domestic unsecured convertible bond 6,501,118 6,457,128 6,394,089 5th domestic unsecured convertible bond 2,806,847 2,781,616 2,756,199 Less: Current portion ( )9,998,928 - - $ 28,997,295 $ 38,924,358 $ 38,833,215 a. 5th domestic unsecured straight corporate bonds On April 20, 2018, TWM issued the 5th domestic unsecured straight corporate bonds. The bonds included seven-year bonds, with the principal amount of $9,000,000 thousand, and coupon rate of 1% per annum, with simple interest due annually. The repayment had been made in April 2025. - 27 -
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b. 6th domestic unsecured straight corporate bonds On March 24, 2020, TWM issued the 6th domestic unsecured straight corporate bonds. The bonds included five-year, seven-year, and ten-year bonds, with the principal amount of $5,000,000 thousand, $10,000,000 t housand and $5,000,000 t housand, each having a face value of $10,000 t housand, and coupon rates of 0.64%, 0.66% and 0.72% per annum, respectively, with simple interest due annually. Repayment will be made in full at maturity. As of June 30, 2026, the amount of unamortized bond issue cost was $2,992 thousand. The trustee of bond holders is Bank of Taiwan. The above-mentioned five-year bond was due and the repayment had been made in March 2025. Future repayments of the above-mentioned corporate bonds are as follows: Year Amount 2027 $ 10,000,000 2030 5,000,000 $ 15,000,000 c. 7th domestic unsecured straight corporate bond On July 13, 2021, TWM issued the 7th domestic unsecured straight corporate bond. The bond was seven-year bond, with the principal amount of $2,500,000 t housand, having a face value of $10,000 thousand, and coupon rate of 0.53% per annum, with simple interest due annually. Repayment will be made in full at maturity. As of June 30, 2026, the amount of unamortized bond issue cost was $1,028 thousand. The trustee of bond holders is Bank of Taiwan. Future repayments of the above-mentioned corporate bond is as follows: Year Amount 2028 $ 2,500,000 d. 1st domestic unsecured straight corporate bond in 2023 On May 22, 2023, TWM issued the 1st domestic unsecured straight corporate bond in 2023 and obtained Social Bond accreditation. The bond was five-year bond, with the principal amount of $6,500,000 thousand, having a face value of $10,000 thousand, and coupon rate of 1.537% per annum, with simple interest due annually. Repayment will be made in full at maturity. As of June 30, 2026, the amount of unamortized bond issue cost was $2,783 thousand. The trustee of bond holders is Bank of Taiwan. Future repayments of the above-mentioned corporate bond is as follows: Year Amount 2028 $ 6,500,000 e. 1st domestic unsecured straight corporate bond in 2024 On September 27, 2024, TWM issued the 1st domestic unsecured straight corporate bond in 2024 and obtained Social Bond accreditation. The bond was five-year bond, with the principal amount of $2,000,000 thousand, having a face value of $10,000 thousand, and coupon rate of 1.89% per annum, with simple interest due annually. Repayment will be made in full at maturity. As of June 30, 2026, the amount of unamortized bond issue cost was $1,676 thousand. The trustee of bond holders is Bank of Taiwan. - 28 -
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Future repayments of the above-mentioned corporate bond is as follows: Year Amount 2029 $ 2,000,000 f. 1st domestic unsecured straight corporate bond in 2025 On April 28, 2025, TWM issued the 1st domestic unsecured straight corporate bond in 2025 and obtained Social Bond accreditation. The bond was five-year bond, with the principal amount of $3,700,000 t housand, having a face value of $10,000 t housand, and coupon rate of 1.9% p er annum, with simple interest due annually. Repayment will be made in full at maturity. As of June 30, 2026, the amount of unamortized bond issue cost was $3,263 thousand. The trustee of bond holders is Bank of Taiwan. Future repayments of the above-mentioned corporate bond is as follows: Year Amount 2030 $ 3,700,000 g. 4th domestic unsecured convertible bond On February 24, 2025, TWM issued its 4th domestic five-year unsecured zero-coupon convertible bond with an aggregate principal amount of $7,000,000 thousand and a par value of $100 thousand per bond certificate at 100%. The conversion price is set initially at $123 per share. The conversion price should be adjusted according to the prescribed formula and has been adjusted from $118.2 to $113.5 per share since July 15, 2026. Except for the book closure period, bondholders are entitled to convert bonds into TWM’s common stock from May 25, 2025 to February 24, 2030. The trustee of bond holders is Mega International Commercial Bank Co., Ltd. If the closing price of TWM’s com mon stock continues being at least 130% of the conversion price then in effect for 30 consecutive trading days or the aggregate outstanding balance of bonds payable is less than 10% of the original issuance amount, TWM has the right to redeem the outstanding bonds payable at par value in cash during the period from three month after the issuance date to the date 40 days prior to the maturity date. At the end of the third year from the bond issuance date, bondholders have the right to request TWM to redeem the convertible bonds at par value in cash. The convertible bond contains both liability and equity components. The equity component was presented in equity under the heading of capital surplus - option. The effective interest rate of the liability component was 1.9462% per annum on initial recognition. As of June 30, 2026, the amount of unamortized bond discount was $478,882 thousand. Proceeds from the issuance ( minus transaction costs $4,035 thousand ) $ 6,995,965 Equity component ( )591,159 Financial liabilities ( )53,869 Liability component at the date of issuance 6,350,937 Interest charged at the effective interest rate 43,152 Liability component on June 30, 2025 $ 6,394,089 Liability component on January 1,2026 $ 6,457,128 Interest charged at the effective interest rate 62,602 Convertible bonds converted into common stock ( )18,612 Liability component on June 30, 2026 $ 6,501,118 - 29 -
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As of June 30, 2026, the bondholders had requested to convert the bonds at face value of $20,000 thousand. h. 5th domestic unsecured convertible bond On February 25, 2025, TWM issued its 5th domestic five-year unsecured zero-coupon convertible bond with an aggregate principal amount of $3,000,000 thousand and a par value of $100 thousand per bond certificate at 100.63%. The conversion price is set initially at $115.8 per share. The conversion price should be adjusted according to the prescribed formula and has been adjusted from $111.3 to $106.9 per share since July 15, 2026. Except for the book closure period, bondholders are entitled to convert bonds into TWM’ s common stock from May 26, 2025 to February 25, 2030. The trustee of bond holders is Mega International Commercial Bank Co., Ltd. If the closing price of TWM’s com mon stock continues being at least 130% of the conversion price then in effect for 30 consecutive trading days or the aggregate outstanding balance of bonds payable is less than 10% of the original issuance amount, TWM has the right to redeem the outstanding bonds payable at par value in cash during the period from three month after the issuance date to the date 40 days prior to the maturity date. At the end of the third year from the bond issuance date, bondholders have the right to request TWM to redeem the convertible bonds at par value in cash. The convertible bond contains both liability and equity components. The equity component was presented in equity under the heading of capital surplus - option. The effective interest rate of the liability component was 1.821% per annum on initial recognition. As of June 30, 2026, the amount of unamortized bond discount was $193,153 thousand. Proceeds from the issuance ( minus transaction costs $1,815 thousand ) $ 3,017,105 Equity component ( )260,188 Financial liabilities ( )17,989 Liability component at the date of issuance 2,738,928 Interest charged at the effective interest rate 17,271 Liability component on June 30, 2025 $ 2,756,199 Liability component on January 1,2026 $ 2,781,616 Interest charged at the effective interest rate 25,231 Liability component on June 30, 2026 $ 2,806,847 - 30 -
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19. PROVISIONS June 30, 2026 December 31, 2025 June 30, 2025 Restoration $ 1,150,536 $ 1,142,156 $ 1,130,771 Replacement 657,950 630,164 611,669 Warranties 10,914 12,278 12,525 Onerous contracts 235,105 237,728 - $ 2,054,505 $ 2,022,326 $ 1,754,965 Current $ 78,639 $ 96,105 $ 103,069 Non-current 1,975,866 1,926,221 1,651,896 $ 2,054,505 $ 2,022,326 $ 1,754,965 Restoration Replacement Warranties Onerous Contracts Total Balance, January 1, 2026 $ 1,142,156 $ 630,164 $ 12,278 $ 237,728 $ 2,022,326 Provision 24,528 30,060 6,166 - 60,754 Payment/Reversal ( )17,648 ( )12,177 ( )7,530 ( )2,623 ( )39,978 Unwinding of discount 1,500 9,903 - - 11,403 Balance, June 30, 2026 $ 1,150,536 $ 657,950 $ 10,914 $ 235,105 $ 2,054,505 Balance, January 1, 2025 $ 1,172,174 $ 584,823 $ 14,085 $ - $ 1,771,082 Provision 21,349 29,299 9,884 - 60,532 Payment/Reversal ( )64,080 ( )11,363 ( )11,444 - ( )86,887 Unwinding of discount 1,328 8,910 - - 10,238 Balance, June 30, 2025 $ 1,130,771 $ 611,669 $ 12,525 $ - $ 1,754,965 20. RETIREMENT BENEFIT PLANS a. Defined contribution plans Domestic firms of the Group adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed and defined contribution plan. Under the LPA, an entity makes monthly contributions to employees’ i ndividual pension accounts at 6% of monthly salaries and wages. The employees of the Group’s subsidiary in other country are participants of state-managed retirement benefit plans operated by local governments. In accordance with the above provisions, the Group’s contributions to the pension plan amounted to $114,958 thousand and $111,993 thousand for the three months ended June 30, 2026 and 2025, respectively, and $231,357 thousand and $225,200 thousand for the six months ended June 30, 2026 and 2025, respectively. b. Defined benefit plans The Group r ecognized pension amounts of $262 t housand, $182 t housand, $478 t housand and $358 thousand as a reduction in expense for the three months and the six months ended June 30, 2026 and 2025, respectively, by using the actuarially determined pension cost rate. - 31 -
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21. EQUITY a. Common stock As of June 30, 2026, December 31, 2025 and June 30, 2025, TWM’s authorized capital was $60,000,000 thousand and capital issued and outstanding were both $37,232,618 thousand, divided into 3,723,262 thousand shares, at a par value of $10 each. As of June 30, 2026, the bondholders of the domestic unsecured convertible bonds had requested to convert the bonds into 169 thousand common stocks, and the amounts recognized as advance receipts for share capital $1,692 thousand. TWM will complete the related corporate registration procedures with respect to the issuance of new stock on the record date in accordance with the relevant regulations. b. Capital surplus June 30, 2026 December 31, 2025 June 30, 2025 From business combinations $ 18,190,446 $ 18,190,446 $ 18,190,446 Additional paid-in capital 1,641,404 4,092,496 4,092,496 Treasury stock transactions 7,652,389 5,159,704 5,159,704 Difference between consideration and carrying amount arising from the disposal of subsidiaries’ stock 85,965 85,965 85,965 Changes in equity of subsidiaries 501,215 501,215 501,215 Changes in equity of associates accounted for using equity method 183,675 106,482 103,167 Convertible bonds payable options 849,658 851,347 851,347 Expired share options 13,269 13,269 13,269 Others 31,180 31,181 30,154 $ 29,149,201 $ 29,032,105 $ 29,027,763 Under the ROC Company Act, capital surplus generated from the excess of the issue price over the par value of capital stock, including the stock issued for business combinations or new capital, the conversion premium from convertible corporate bonds, treasury stock transactions, and the difference between consideration and carrying amount of subsidiaries’ stock disposed of, may be applied to make- up accumulated deficit, if any, or be transferred to capital as stock dividends, or be distributed as cash dividends when there is no accumulated deficit, and this transfer is restricted to a certain percentage of the paid-in capital. The capital surplus arising from changes in equity of subsidiaries, changes in equity of associates accounted for using equity method and the overdue unclaimed dividends could also be applied to make-up accumulated deficit, if any. The other capital surplus cannot be used by any means. c. Appropriation of earnings and dividend policy In accordance with the Company’s Articles of Incorporation, TWM’s profits earned in a fiscal year shall first be set aside to pay the applicable taxes, offset losses, and set aside for legal reserve pursuant to laws and regulations, unless the legal reserve has reached TWM’s total paid- up capital. The remaining profits shall be set aside for special reserve in accordance with laws, regulations, or business requirements. Any further remaining profits plus unappropriated earnings shall be distributed in accordance with the proposal submitted by the Board of Directors for approval at a stockholders’ meeting. - 32 -
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TWM adopts a dividend distribution policy whereby only surplus profits of TWM shall be distributed to stockholders. That is, after setting aside amounts for retained earnings based on TWM’s capital budget plan, the residual profits shall be distributed as cash dividends. Stock dividends in a particular year shall be capped at no more than 80% o f total dividends to be distributed for that year. The amount of the distributable dividends, the forms in which dividends shall be distributed, and the ratio thereof shall depend on the actual profit and cash positions of TWM and shall be approved by resolutions of the Board of Directors, who shall, upon such approval, recommend the same to the stockholders for approval by resolution at the stockholders’ meetings. The above appropriation of earnings should be resolved in the annual general stockholders’ meeting (AGM) held in the following year. According to the ROC Company Act, the appropriation for legal reserve shall be made until the accumulated reserve equals the aggregate par value of the outstanding capital stock of TWM. The legal reserve may be used to offset losses. After offsetting any deficit, the legal reserve may be transferred to capital and distributed as stock dividends or cash dividends for the amount in excess of 25% of the paid- in capital pursuant to a resolution adopted in the stockholders’ meeting. Pursuant to existing regulations, TWM is required to set aside and reverse additional special reserve equivalent to the net debit balance of the other equity interests, such as the exchange differences on translation and unrealized gain or loss on financial assets at FVTOCI. The appropriations of earnings for 2025 and 2024, which have been resolved in the AGM on May 29, 2026 and May 29, 2025, respectively, were as follows: For Fiscal Year 2025 For Fiscal Year 2024 Legal reserve $ 1,430,981 $ 1,396,607 Special reserve 830,974 135,582 Cash dividends 12,047,834 12,434,064 Cash dividends per share (NT$) 3.93716 4.1111 In addition, cash distributions arising from capital surplus with respect to the excess of stock issuance price over the par value of capital stock, totaling $2,469,815 t housand and $1,176,232 t housand and representing $0.80712 and $0.3889 per share, were also resolved in the AGM; thus, total distributions were $4.74428 and $4.5 per share for 2025 and 2024, respectively. As of June 30, 2026, the cash dividends to stockholders of TWM and subsidiaries amounted to $15,975,696 thousand and were recognized under dividends payable account. - 33 -
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d. Other equity interests Exchange Differences on Translation Unrealized Gain (Loss) on Financial Assets at FVTOCI Total Balance, January 1, 2026 $( )49,992 $( )916,564 $( )966,556 Exchange differences on translation 33,932 - 33,932 Changes in fair value of financial assets at FVTOCI - 51,998 51,998 Valuation loss (gain) of equity instruments transferred to retained earnings due to disposal - ( )31,627 ( )31,627 Changes in other comprehensive income (loss) of associates accounted for using equity method 5,032 ( )7,253 ( )2,221 Valuation loss (gain) of equity instruments transferred to retained earnings due to disposal by associates - 19,851 19,851 Other comprehensive loss transferred to retained earnings due to the decrease of percentage of ownership interest in the investments accounted for using equity method - ( )231 ( )231 Income tax effect - ( )7,045 ( )7,045 Balance, June 30, 2026 $( )11,028 $( )890,871 $( )901,899 Balance, January 1, 2025 $( )18,142 $( )117,440 $( )135,582 Exchange differences on translation ( )24,159 - ( )24,159 Changes in fair value of financial assets at FVTOCI - ( )376,191 ( )376,191 Changes in other comprehensive income (loss) of associates accounted for using equity method ( )45,291 ( )165,088 ( )210,379 Valuation loss (gain) of equity instruments transferred to retained earnings due to disposal by associates - ( )962 ( )962 Income tax effect - 68,993 68,993 Balance, June 30, 2025 $( )87,592 $( )590,688 $( )678,280 e. Treasury stock As of June 30, 2026, December 31, 2025 and June 30, 2025, TWM’ s stocks held by its subsidiaries, TCC, TFN and TID, for investment purposes were 663,404 thousand shares, 698,752 thousand shares and 698,752 t housand shares, respectively. The corresponding market values were $77,286,520 thousand, $75,814,549 thousand and $80,356,434 thousand, respectively. Since TWM’s stocks held by its subsidiaries are regarded as treasury stock, TWM recognized $28,214,022 t housand, $29,717,344 thousand and $29,717,344 thousand as treasury stock, respectively. For those treasury stockholders, they have the same rights as the other stockholders, except that they are not allowed to subscribe new shares issued by TWM for cash and exercise the voting rights over such treasury stock. - 34 -
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TCC disposed of 35,348 thousand shares of TWM for $3,996,007 thousand in the first half year of 2026. TWM recognized “capital surplus - treasury stock transactions” at the amount of $2,492,685 thousand. 22. OPERATING REVENUE For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Revenue from contracts with customers Telecommunications and value- added services $ 15,705,057 $ 15,215,336 $ 31,433,691 $ 30,386,115 Sales revenue 31,600,063 30,429,551 63,529,091 61,631,435 Cable TV and broadband services 1,596,949 1,403,215 3,201,784 2,782,549 Others 499,686 391,971 984,560 775,292 Other operating revenue 30,621 30,942 61,553 62,977 $ 49,432,376 $ 47,471,015 $ 99,210,679 $ 95,638,368 a. Contract information Refer to Note 35 and to Note 4.u. to the consolidated financial statements for the year ended December 31, 2025. b. Contract balances June 30, 2026 December 31, 2025 June 30, 2025 January 1, 2025 Contract assets Bundle sales $ 15,313,096 $ 15,391,127 $ 15,052,289 $ 14,123,577 Others 425,797 668,008 - - Less: Allowance for impairment loss ( )114,899 ( )115,517 ( )112,835 ( )105,849 $ 15,623,994 $ 15,943,618 $ 14,939,454 $ 14,017,728 Current $ 8,026,392 $ 8,134,704 $ 7,168,447 $ 6,780,457 Non-current 7,597,602 7,808,914 7,771,007 7,237,271 $ 15,623,994 $ 15,943,618 $ 14,939,454 $ 14,017,728 For notes and accounts receivable, please refer to Note 8. The Group measures the loss allowance for contract assets at an amount equal to lifetime ECLs. The contract assets will be transferred to accounts receivable when the corresponding invoice is billed to the client, and the contract assets have substantially the same risk as the trade receivables. Therefore, the Group concluded that the expected loss rates for trade receivables can be applied to the contract assets. - 35 -
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June 30, 2026 December 31, 2025 June 30, 2025 January 1, 2025 Contract liabilities Telecommunications and value-added services $ 1,496,707 $ 1,610,003 $ 1,618,385 $ 1,692,729 Sales of goods 964,562 449,114 570,176 549,942 Cable TV and broadband services 464,224 455,027 548,189 556,569 Others 8,377 6,616 7,063 4,213 $ 2,933,870 $ 2,520,760 $ 2,743,813 $ 2,803,453 Current $ 2,596,291 $ 2,163,953 $ 2,385,274 $ 2,677,430 Non-current 337,579 356,807 358,539 126,023 $ 2,933,870 $ 2,520,760 $ 2,743,813 $ 2,803,453 The changes in balances of contract assets and contract liabilities primarily result from the timing difference between the satisfaction of performance obligations and the payments collected from customers. c. Assets related to contract costs June 30, 2026 December 31, 2025 June 30, 2025 Incremental costs of obtaining a contract - non-current $ 2,320,793 $ 2,434,927 $ 2,548,355 The Group considered the past experience and the default clauses in the sale contracts and believed the commission and the subsidy paid for obtaining a contract are wholly recoverable, therefore, such costs are capitalized. The amounts of amortization recognized for the three months ended June 30, 2026 and 2025 were $418,518 thousand and $455,759 thousand, respectively, and for the six months ended June 30, 2026 and 2025 were $844,868 thousand and $922,496 thousand, respectively. - 36 -
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23. NON-OPERATING INCOME AND EXPENSES a. Other gains and losses, net For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Gain (loss) on disposal and retirement of property, plant and equipment, net $ 31,436 $( )111,712 $ 12,309 $( )128,995 Gain on disposal of property, plant and equipment held for sale - - - 1,689 Gain (loss) on financial assets at FVTPL, net 49,839 ( )199,893 70,716 ( )108,350 Gain on financial liabilities at FVTPL 20,362 400 23,362 9,700 Gain (loss) on disposal of investments accounted for using equity method ( )57 1 ( )57 17,015 Gain (loss) on foreign exchange, net 3,367 ( )37,519 ( )5,782 ( )45,094 Others ( )7,702 ( )1,248 ( )7,827 ( )1,513 $ 97,245 $( )349,971 $ 92,721 $( )255,548 b. Finance costs For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Interest expense Corporate bonds $ 126,177 $ 125,092 $ 250,776 $ 235,496 Bank loans 122,832 133,733 254,390 287,563 Commercial papers payable 56,671 75,014 129,100 143,530 Interest on lease liabilities 44,714 34,771 89,500 70,273 Other financial costs 16,206 16,013 32,190 31,902 $ 366,600 $ 384,623 $ 755,956 $ 768,764 - 37 -
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24. INCOME TAX a. Income tax recognized in profit or loss For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Current income tax Current period $ 1,169,344 $ 1,020,817 $ 2,259,847 $ 1,893,131 Prior years’ adjustments ( )85,841 ( )256,358 ( )82,845 ( )256,371 1,083,503 764,459 2,177,002 1,636,760 Deferred income tax Temporary differences 54,723 118,096 103,893 10,644 Income tax expense $ 1,138,226 $ 882,555 $ 2,280,895 $ 1,647,404 b. Income tax recognized in other comprehensive income (loss) For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Deferred income tax expense (income) Unrealized gain/loss on financial assets at FVTOCI $( )5,084 $( )29,427 $ 7,046 $( )68,996 c. Income tax examinations The latest years for which the incom e tax returns of the entities in the Group have been examined by the tax authorities were as follows: Company Year TWM 2022 TCC 2024 WMT 2024 TNH 2024 FSD 2024 TPC 2024 FSNR 2024 TWMFM 2024 TFN 2024 TT&T 2023 TDS 2024 TPIA 2024 TFC 2024 (Exclude 2023) TID 2024 SFF 2024 TFNM 2023 GFMT 2024 GWMT 2024 - 38 -
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Company Year WTVB 2023 YJCTV 2023 MCTV 2024 PCTV 2023 UCTV 2023 GCTV 2023 momo 2022 FI 2024 FST 2024 FSL 2024 MFS 2024 Prosperous Living 2024 TST (Dissolved) 2022 Bebe Poshe (Dissolved) 2024 25. EARNINGS PER SHARE For the Three Months Ended June 30, 2026 Amount After Income Tax Weighted- average Number of Shares (In Thousands) EPS (NT$) Basic EPS Profit attributable to owners of the parent $ 4,538,819 3,043,652 $ 1.49 Effect of dilutive potential common stock: Employees’ compensation - 2,616 Convertible bonds 23,893 86,146 Diluted EPS Profit attributable to owners of the parent (adjusted for potential effect of common stock) $ 4,562,712 3,132,414 $ 1.46 For the Three Months Ended June 30, 2025 Amount After Income Tax Weighted- average Number of Shares (In Thousands) EPS (NT$) Basic EPS Profit attributable to owners of the parent $ 3,289,190 3,024,510 $ 1.09 Effect of dilutive potential common stock: Employees’ compensation - 2,095 Convertible bonds 43,035 82,817 Diluted EPS Profit attributable to owners of the parent (adjusted for potential effect of common stock) $ 3,332,225 3,109,422 $ 1.07 - 39 -
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For the Six Months Ended June 30, 2026 Amount After Income Tax Weighted- average Number of Shares (In Thousands) EPS (NT$) Basic EPS Profit attributable to owners of the parent $ 8,685,140 3,034,396 $ 2.86 Effect of dilutive potential common stock: Employees’ compensation - 4,467 Convertible bonds 64,471 86,161 Diluted EPS Profit attributable to owners of the parent (adjusted for potential effect of common stock) $ 8,749,611 3,125,024 $ 2.80 For the Six Months Ended June 30, 2025 Amount After Income Tax Weighted- average Number of Shares (In Thousands) EPS (NT$) Basic EPS Profit attributable to owners of the parent $ 6,944,389 3,024,510 $ 2.30 Effect of dilutive potential common stock: Employees’ compensation - 3,410 Convertible bonds 50,723 57,966 Diluted EPS Profit attributable to owners of the parent (adjusted for potential effect of common stock) $ 6,995,112 3,085,886 $ 2.27 Since TWM has the discretion to settle the employees’ c ompensation by cash or stock, TWM should presume that the entire amount of the compensation will be settled in stock, and the potential stock dilution should be included in the weighted-average number of stock outstanding used in the calculation of diluted EPS, provided there is a dilutive effect. Such dilutive effect of the potential stock needs to be included in the calculation of diluted EPS until employees’ compensation is approved in the following year. 26. CASH FLOW INFORMATION Changes in liabilities arising from financing activities: For the Six Months Ended June 30, 2026 Non-cash Changes Opening Balance Cash Flows New Leases Others Ending Balance Lease liabilities (including current and non-current portions) $ 13,286,729 $( )2,387,900 $ 4,205,955 $( )67,687 $ 15,037,097 - 40 -
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For the Six Months Ended June 30, 2025 Non-cash Changes Opening Balance Cash Flows New Leases Others Ending Balance Lease liabilities (including current and non-current portions) $ 11,277,196 $( )2,261,845 $ 2,536,457 $( )183,563 $ 11,368,245 27. CAPITAL MANAGEMENT The Group maintains and manages its capital to meet the minimum paid-in capital required by the competent authority, and to optimize the balance of liabilities and equity in order to m aximize stockholders’ return. By periodically reviewing and measuring relative cost, risk, and rate of return to ensure profit and to maintain adequate financial ratios, the Group may adopt various financing approaches to balance its capital structure in order to meet the demands for working capital, capital expenditures, settlements of liabilities, and dividend payments in its normal course of business for the future. 28. FINANCIAL INSTRUMENTS a. Categories of financial instruments June 30, 2026 December 31, 2025 June 30, 2025 Financial assets Financial assets at FVTPL (including current and non-current portions) (Note 1) $ 1,812,062 $ 1,718,470 $ 1,936,014 Financial assets at FVTOCI (including current and non-current portions) 4,452,946 4,189,521 4,302,194 Financial assets measured at amortized cost (including current and non- current portions) (Note 2) 30,175,648 26,188,812 29,039,138 $ 36,440,656 $ 32,096,803 $ 35,277,346 Financial liabilities Financial liabilities measured at amortized cost (including current and non-current portions) (Note 3) $ 115,385,252 $ 112,451,796 $ 124,450,185 Financial liabilities at FVTPL - non- current 36,182 59,658 62,158 $ 115,421,434 $ 112,511,454 $ 124,512,343 Note 1: Financial assets mandatorily measured at FVTPL. Note 2: The balances comprised cash and cash equivalents, financial assets at amortized cost, notes and accounts receivable, other receivables, other financial assets and refundable deposits, which were financial assets measured at amortized cost. Note 3: The balances comprised long-term and short-term borrowings, commercial papers payable, notes and accounts payable, dividends payable, other payables, other financial liabilities (classified as other current liabilities), bonds payable and guarantee deposits, which were financial liabilities measured at amortized cost. - 41 -
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b. Fair value of financial instruments 1) Financial instruments not measured at fair value Except for the table below, the Group c onsiders that the carrying amount of financial assets and liabilities that are not at fair value is close to the fair value, or the fair value cannot be reliably measured. June 30, 2026 December 31, 2025 June 30, 2025 Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Financial liabilities Bonds payable (including current portion) $ 38,996,223 $ 40,068,856 $ 38,924,358 $ 39,581,963 $ 38,833,215 $ 39,643,965 The fair value of bonds payable is measured by Level 2 inputs, using a volume-weighted average price on the TPEx at reporting date. 2) Fair value of financial instruments that are measured at fair value on a recurring basis The table below provides the related analysis of financial instruments at fair value after initial recognition. Based on the extent that fair value can be observed, the fair value measurements are grouped into Levels 1 to 3: a) Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities on the reporting date. b) Level 2: Inputs other than quoted prices included within Level 1 are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices). c) Level 3: Inputs for the assets or liabilities are not based on observable market data (unobservable inputs). June 30, 2026 Level 1 Level 2 Level 3 Total Financial assets at FVTPL Domestic unlisted stocks $ - $ - $ 305,770 $ 305,770 Domestic limited partnerships - - 30,759 30,759 Foreign listed stocks 6,919 - - 6,919 Foreign unlisted stocks - - 64,017 64,017 Foreign limited partnerships - - 1,140,451 1,140,451 Foreign convertible notes - - 221,239 221,239 Other investment agreement - - 42,907 42,907 $ 6,919 $ - $ 1,805,143 $ 1,812,062 - 42 -
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Level 1 Level 2 Level 3 Total Financial assets at FVTOCI Equity instruments Domestic listed stocks $ 833,976 $ - $ - $ 833,976 Domestic unlisted stocks - - 1,325,975 1,325,975 Foreign listed stocks 121 - - 121 Foreign unlisted stocks - - 2,292,874 2,292,874 $ 834,097 $ - $ 3,618,849 $ 4,452,946 Financial liabilities at FVTPL $ - $ 36,182 $ - $ 36,182 December 31, 2025 Level 1 Level 2 Level 3 Total Financial assets at FVTPL Domestic unlisted stocks $ - $ - $ 303,583 $ 303,583 Domestic limited partnerships - - 36,882 36,882 Foreign listed stocks 7,931 - - 7,931 Foreign unlisted stocks - - 67,833 67,833 Foreign limited partnerships - - 1,034,454 1,034,454 Foreign convertible notes - - 209,334 209,334 Embedded rights - - 19,945 19,945 Other investment agreement - - 38,508 38,508 $ 7,931 $ - $ 1,710,539 $ 1,718,470 Financial assets at FVTOCI Equity instruments Domestic listed stocks $ 574,371 $ - $ - $ 574,371 Domestic unlisted stocks - - 1,352,256 1,352,256 Foreign listed stocks 115 - - 115 Foreign unlisted stocks - - 2,262,779 2,262,779 $ 574,486 $ - $ 3,615,035 $ 4,189,521 Financial liabilities at FVTPL $ - $ 59,658 $ - $ 59,658 - 43 -
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June 30, 2025 Level 1 Level 2 Level 3 Total Financial assets at FVTPL Domestic unlisted stocks $ - $ - $ 287,500 $ 287,500 Domestic limited partnerships - - 37,006 37,006 Foreign listed stocks 7,278 - - 7,278 Foreign unlisted stocks - - 75,162 75,162 Foreign limited partnerships - - 792,900 792,900 Foreign convertible notes - - 683,306 683,306 Embedded rights - - 18,074 18,074 Other investment agreement - - 34,788 34,788 $ 7,278 $ - $ 1,928,736 $ 1,936,014 Financial assets at FVTOCI Equity instruments Domestic listed stocks $ 607,422 $ - $ - $ 607,422 Domestic unlisted stocks - - 1,360,900 1,360,900 Foreign listed stocks 138 - - 138 Foreign unlisted stocks - - 2,333,734 2,333,734 $ 607,560 $ - $ 3,694,634 $ 4,302,194 Financial liabilities at FVTPL $ - $ 62,158 $ - $ 62,158 There were no transfers between the fair value measurements of Levels 1 and 2 for the six months ended June 30, 2026 and 2025. Valuation techniques and assumptions used in fair value determination a) The fair value of financial instruments traded in active markets is based on quoted market prices (including stocks of publicly traded companies). b) Valuation techniques and inputs applied for Level 2 fair value measurement: Call and put options of convertible bonds that adopted binomial tree valuation model were evaluated by the observable closing price of the stocks, volatility, risk-free interest rate, risk discount rate, and liquidity risk at the balance sheet date. c) Valuation techniques and inputs applied for Level 3 fair value measurement: The evaluations of fair value of unlisted stocks and convertible notes were mainly referenced to the valuation of the same type of companies or the transaction prices of recent financing activities and estimated free cash flows through the market approach, income approach and asset approach. The unobservable inputs were the liquidity discount rate and the stock price volatility. The liquidity discount rates were ranged from 8.3%~38.4%, 11.8%~30.6% and 11.8%~31.1% as of June 30, 2026, December 31, 2025 a nd June 30, 2025, respectively. The stock price volatilities were ranged from 41.5%~70.4%, 37.9%~74.6% and 37%~87.6% as of June 30, 2026, December 31, 2025 and June 30, 2025, respectively. - 44 -
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The fair value of limited partnerships investments was evaluated through the income approach and asset approach. The evaluation and assumptions were mainly referenced to estimated future cash flows and related financial information of the companies. 3) Reconciliation of Level 3 fair value measurements of financial instruments For the Six Months Ended June 30, 2026 Financial Assets at FVTPL - Financial Instruments Financial Assets at FVTOCI - Equity Instruments Balance, January 1, 2026 $ 1,710,539 $ 3,615,035 Additions 36,245 - Reclassification ( )3,090 - Decrease ( )10,297 ( )61,628 Recognized in profit or loss (gain on financial assets at FVTPL) 71,746 - Recognized in other comprehensive income (unrealized gain on financial assets at FVTOCI) - 65,442 Balance, June 30, 2026 $ 1,805,143 $ 3,618,849 For the Six Months Ended June 30, 2025 Financial Assets at FVTPL - Financial Instruments Financial Assets at FVTOCI - Equity Instruments Balance, January 1, 2025 $ 1,989,597 $ 3,791,726 Additions 51,085 250,000 Reclassification - 48,632 Decrease ( )3,169 - Recognized in profit or loss (loss on financial assets at FVTPL) ( )108,777 - Recognized in other comprehensive income (unrealized loss on financial assets at FVTOCI) - ( )395,724 Balance, June 30, 2025 $ 1,928,736 $ 3,694,634 c. Financial risk management The Group’ s m ajor financial instruments include equity investments, hybrid investments, trade receivables, trade payables, commercial papers payable, bonds payable, borrowings, lease liabilities, etc., and the Group is exposed to the credit risk, liquidity risk, market risk due to usage of financial instruments. The Group managed its exposure to the relevant risks with the objective to reduce the potentially adverse effects the market uncertainties may have on its financial performance. The plans for material treasury activities are reviewed by the Board of Directors, Audit and Risk Management Committee and the management executives in accordance with procedures by risk management policies, relevant regulations or internal controls. Should any major issue arise, the Group must comply with procedures that provide guiding principles for overall financial risk management and segregation of duties. - 45 -
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1) Credit risk Credit risk refers to the risk that a counterparty would default on its contractual obligations, resulting in a financial loss to the Group. The maximum credit exposure of the aforementioned financial instruments is equal to their carrying amounts recognized in the consolidated balance sheets as of the balance sheet date. The Group h as large trade receivables outstanding with its customers. A substantial majority of the Group’ s o utstanding trade receivables are not covered by collateral or credit insurance. The Group h as implemented ongoing measures including enhancing credit assessments and strengthening overall risk management to reduce its credit risk. While the Group has procedures to monitor and limit exposure to credit risk on trade receivables, there can be no assurance such procedures will effectively limit its credit risk and avoid losses. This risk is heightened during periods when economic conditions worsen. As the Group s erves a large number of unrelated consumers, the concentration of credit risk was limited. 2) Liquidity risk Liquidity risk is the risk that the Group f ails to meet the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’ s a pproach to manage liquidity is to ensure, as far as possible, that it always has sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable loss or damage to the Group’s reputation. The Group manages and maintains a sufficient level of capital to ensure the requirements of paying estimated operating expenditures, including financial obligations on each contract. The Group also monitors its bank credit facilities to ensure that the Group fully complies with the provisions and financial covenants of loan contracts. As of June 30, 2026, December 31, 2025 and June 30, 2025, the Group h ad unused bank facilities of $63,019,792 t housand, $69,154,041 t housand and $65,767,264 thousand, respectively. The table below summarizes the maturity profile of the Group’ s f inancial liabilities based on contractual undiscounted payments, but not including the financial liabilities whose carrying amounts approximate contractual cash flows: Contractual Cash Flows Within 1 Year 1-5 Years 5-10 Years June 30, 2026 Unsecured loans $ 21,729,596 $ 10,654,682 $ 11,074,914 $ - Secured loans 1,452,701 142,905 1,309,796 - Commercial papers payable 10,705,689 4,160,830 6,544,859 - Bonds payable 40,561,960 10,323,255 30,238,705 - Lease liabilities 15,440,159 4,520,942 8,306,240 2,612,977 Other non-current liabilities 146,250 73,125 73,125 - $ 90,036,355 $ 29,875,739 $ 57,547,639 $ 2,612,977 - 46 -
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Contractual Cash Flows Within 1 Year 1-5 Years 5-10 Years December 31, 2025 Unsecured loans $ 25,063,276 $ 12,978,323 $ 12,084,953 $ - Secured loans 1,549,519 144,744 1,404,775 - Commercial papers payable 18,734,559 9,107,033 9,627,526 - Bonds payable 40,854,165 323,255 40,530,910 - Lease liabilities 13,635,461 4,322,227 7,597,575 1,715,659 Other non-current liabilities 219,375 73,125 146,250 - $ 100,056,355 $ 26,948,707 $ 71,391,989 $ 1,715,659 June 30, 2025 Unsecured loans $ 27,183,118 $ 14,077,508 $ 13,105,610 $ - Secured loans 1,674,375 147,121 608,217 919,037 Commercial papers payable 16,650,385 4,913,103 11,737,282 - Bonds payable 40,905,215 323,255 40,581,960 - Lease liabilities 11,620,747 4,103,326 6,891,431 625,990 Other non-current liabilities 219,375 73,125 146,250 - $ 98,253,215 $ 23,637,438 $ 73,070,750 $ 1,545,027 3) Market risk Market risk is the risk that arises from the changes in foreign exchange rates, interest rates, and prices, and will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within an acceptable range and to optimize the return. The Group c arefully evaluates each financial instrument transaction involving any risk such as exchange rate risk, interest rate risk, and market price risk in order to decrease potential influences caused by market uncertainty. a) Exchange rate risk The Group mainly operates in Taiwan, except for international roaming services. Most of the operating revenue and expenses are measured in NTD. A small portion of the expenses is paid in USD, EUR, etc.; thus, the Group purchases currency at the spot rate based on the conservative principle in order to hedge exchange rate risk. Refer to Note 33 f or the information of the Group’ s f oreign currency assets and liabilities exposed to significant exchange rate risk. Sensitivity analysis The Group’ s e xchange rate risk comes mainly from conversion gains and losses of accounts denominated in monetary items of foreign currencies. If there had been an unfavorable 5% movement in the levels of foreign exchanges against NTD at the end of the reporting period (with other factors remaining constant at the end of the reporting period and with analyses of the two periods on the same basis), profit would have decreased by $1,220 t housand and $6,854 thousand for the six months ended June 30, 2026 and 2025, respectively. - 47 -
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b) Interest rate risk The entities within the Group were funded using both fixed and floating interest rates, resulting in exposure to interest rate risk. To mitigate the impact of interest rate fluctuations, the Group maintains a balanced mix of fixed and floating interest rates borrowings. The carrying amounts of the Group’s financial assets and financial liabilities exposed to interest rate risk were as follows: June 30, 2026 December 31, 2025 June 30, 2025 Fair value interest rate risk Financial assets $ 5,793,892 $ 4,020,767 $ 6,571,662 Financial liabilities 47,635,564 56,075,342 51,068,682 Cash flow interest rate risk Financial assets 9,494,617 8,107,194 9,213,509 Financial liabilities 30,755,469 31,902,491 34,753,642 Sensitivity analysis The following sensitivity analysis is based on the exposure to interest rate risk of derivative and non-derivative instruments at the end of the reporting period. For floating-rate assets and liabilities, the analysis assumes that the balances of outstanding assets and liabilities at the end of the reporting period have been outstanding for the whole period and that the changes in interest rates are reasonable. If the interest rate had increased by 50 b asis points (with other factors remaining constant at the end of the reporting period and with analyses of the two periods on the same basis), profit would have decreased by $53,152 thousand and $63,850 thousand for the six months ended June 30, 2026 and 2025, respectively. c) Other market price risk The exposure to financial instrument price risk is mainly due to holding of stocks. The Group manages the risk by maintaining portfolios of investments with different risks and by continuously monitoring the future developments and market trends of investment targets. Sensitivity analysis If the prices of financial instruments had decreased by 5% (with other factors remaining constant and with the analyses of the two periods on the same basis), net income would have decreased by $90,603 t housand and $96,801 t housand since the fair value of financial assets at FVTPL decreased for the six months ended June 30, 2026 and 2025, respectively. Other comprehensive income would have decreased by $222,647 thousand and $215,110 thousand since the fair value of financial assets at FVTOCI decreased for the six months ended June 30, 2026 and 2025, respectively. - 48 -
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29. RELATED-PARTY TRANSACTIONS a. Parent company and ultimate controlling party TWM is the ultimate controlling party of the Group. b. Related party name and nature of relationship Related Party Nature of Relationship SYSTEX Associate PACM Associate AppWorks Associate AppWorks Fund III Associate AppWorks Fund IV Associate Uspace Associate NADA Associate Tropics Associate Fubon Green Power Associate Bronci Associate GHS Associate kbro Media Associate M.E. Associate SK Biomedical Associate Concord System Management Corporation (Concord) Associate (subsidiary of SYSTEX) Systex Software & Service Corporation Associate (subsidiary of SYSTEX) Taifon Computer Co., Ltd. Associate (subsidiary of SYSTEX) Syspower Corporation Associate (subsidiary of SYSTEX) Systex Fintech Corporation Associate (subsidiary of SYSTEX) Systex Solutions Corporation Associate (subsidiary of SYSTEX) E-Service Information Corporation Associate (subsidiary of SYSTEX) Taiwan Information Service Technology Corporation Associate (subsidiary of SYSTEX) UniXecure Technology Corporation Associate (subsidiary of SYSTEX) Docutek Solutions, Inc. Associate (subsidiary of SYSTEX) SoftMobile Technology Corporation Associate (subsidiary of SYSTEX) Top Information Technologies Corporation Associate (subsidiary of SYSTEX) Dawning Technology Inc. Associate (subsidiary of SYSTEX) Palsys Digital Technology Corporation Associate (subsidiary of SYSTEX) Caresys Information, Inc. Associate (subsidiary of SYSTEX) AppWorks School Co., Ltd. Associate (subsidiary of AppWorks) Shoei Contents Corporation Associate (subsidiary of NADA) WeMo Corp. Associate (subsidiary of WeMo) WeMo TW Associate (subsidiary of WeMo) Mepay Co., Ltd. Associate (subsidiary of M.E.) EnVision Concept Co., Ltd. Associate (subsidiary of M.E.) - 49 -
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Related Party Nature of Relationship Fubon Life Insurance Co., Ltd. (Fubon Life) Other related party Fubon Insurance Co., Ltd. (Fubon Insurance) Other related party Fubon Asset Management Co., Ltd. Other related party Fubon Sports & Entertainment Co., Ltd. Other related party Taipei Fubon Commercial Bank Co., Ltd. (TFCB) Other related party Fubon Financial Holding Co., Ltd. Other related party Fubon Life Insurance (HK) Ltd. Other related party Fubon Securities Co., Ltd. Other related party Fubon Futures Co., Ltd. Other related party Fubon Securities Investment Services Co., Ltd. Other related party Fubon Securities Venture Capital Co., Ltd. Other related party Fubon Insurance Agency Co., Ltd. Other related party Fubon Financial Holding Venture Capital Co., Ltd. Other related party Fubon Stadium Co., Ltd. Other related party Fubon AMC, Ltd. Other related party Fubon Bank (Hong Kong) Limited Other related party Fubon Bank (China) Co., Ltd. Other related party Fubon Land Development Co., Ltd. Other related party Fubon Property Management Co., Ltd. Other related party Fubon Security Service Co., Ltd. Other related party Fubon Real Estate Management Co., Ltd. Other related party Fubon Hospitality Management Co., Ltd. Other related party Fubon Private Equity Co., Ltd. Other related party TFB Capital Co., Ltd. Other related party Chung Hsing Constructions Co., Ltd. Other related party Ming Dong Co., Ltd. Other related party Precision Health Inc. Other related party Harvard Health Inc. Other related party (not a related party since the fourth quarter of 2025) Fubon Xinji Investment Co., Ltd. Other related party Hung Fu Investment Co., Ltd Other related party Cho Pharma Inc. Other related party Everbright Biofund Other related party Dawin Creative Co., Ltd. Other related party AppWorks Ventures III Limited Other related party Chen Yun Co., Ltd. Other related party NTU Alumni Ventures Co., Ltd. Other related party Chen Feng Investment Limited Other related party Dai-Ka Ltd. Other related party kbro Co., Ltd. (kbro) Other related party - 50 -
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Related Party Nature of Relationship Daanwenshan CATV Co., Ltd. Other related party North Taoyuan CATV Co., Ltd. Other related party Yangmingshan CATV Co., Ltd. Other related party Hsin Taipei CATV Co., Ltd. Other related party Chinpingtao CATV Co., Ltd. Other related party Hsintangcheng CATV Co., Ltd. Other related party Chuanlien CATV Co., Ltd. Other related party Chen Tao Cable TV Co., Ltd. Other related party Fengmeng Cable TV Co., Ltd. Other related party Hsinpingtao CATV Co., Ltd. Other related party Kuansheng CATV Co., Ltd. Other related party Nantien CATV Co., Ltd. Other related party Taiwan Mobile Foundation (TMF) Other related party Taipei New Horizon Foundation (TNHF) Other related party Fubon Cultural & Educational Foundation Other related party Fubon Charity Foundation Other related party Fubon Art Foundation Other related party Fubon Life Art Museum Foundation Other related party Taipei Fubon Bank Charity Foundation Other related party Taipei New Horizon Management Agency Other related party Key management Chairman, director, president, vice president, etc. c. Significant transactions with related parties 1) Operating revenue For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Associates $ 18,387 $ 13,713 $ 36,702 $ 35,392 Other related parties 445,664 437,530 859,820 834,568 $ 464,051 $ 451,243 $ 896,522 $ 869,960 The Group r enders telecommunications, sales, maintenance, lease services, etc., to the related parties. The transaction terms with related parties were not significantly different from those with third parties. 2) Purchases For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Associates $ 151,141 $ 145,641 $ 262,539 $ 228,514 Other related parties 346,322 313,388 593,540 555,055 $ 497,463 $ 459,029 $ 856,079 $ 783,569 - 51 -
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The entities mentioned above provide broadband, purchases, copyright, broadcast, and other services. The transaction terms with related parties were not significantly different from those with third parties. 3) Receivables due from related parties Account Related Party Categories June 30, 2026 December 31, 2025 June 30, 2025 Notes and accounts receivable Associates $ 7,956 $ 5,664 $ 4,167 Notes and accounts receivable Other related parties 417,291 407,295 440,949 $ 425,247 $ 412,959 $ 445,116 Other receivables Other related parties $ 248,000 $ 249,638 $ 209,237 Receivables from related parties mentioned above were not secured with collateral, and no provisions for impairment loss were accrued. 4) Payables due to related parties Account Related Party Categories June 30, 2026 December 31, 2025 June 30, 2025 Notes and accounts payable Associates $ 72,694 $ 33,388 $ 70,219 Notes and accounts payable Other related parties 244,549 229,769 220,636 $ 317,243 $ 263,157 $ 290,855 Other payables Associates $ 39,006 $ 31,681 $ 47,253 Other payables Other related parties 130,646 93,274 83,107 $ 169,652 $ 124,955 $ 130,360 5) Prepayments June 30, 2026 December 31, 2025 June 30, 2025 Associates $ 67,669 $ 17,212 $ 68,317 Other related parties 90,298 28,436 112,033 $ 157,967 $ 45,648 $ 180,350 6) Bank deposits, time deposits and other financial assets (including current and non-current portions) June 30, 2026 December 31, 2025 June 30, 2025 Other related parties TFCB $ 3,381,206 $ 3,426,936 $ 3,525,832 - 52 -
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7) Acquisition of investments accounted for using equity method Related Party Transaction Transaction Period Shares (In Thousands) Purchase Price Participation in AppWorks Fund IV’s capital increase The first half of 2026 - $ 21,805 Contributions to NADA’s capital increase The first half of 2026 600 30,000 $ 51,805 Participation in AppWorks Fund IV’s capital increase The first half of 2025 - $ 31,150 Contributions to Tropics’s capital increase The first half of 2025 4,400 44,000 $ 75,150 8) Acquisition of property, plant and equipment Purchase Price For the Six Months Ended June 30 2026 2025 Other related parties $ 10,571 $ 106 9) Acquisition of intangible assets Purchase Price For the Six Months Ended June 30 2026 2025 Associates SYSTEX $ 30,302 $ 30,790 10) Prepayments for copyright Purchase Price For the Six Months Ended June 30 2026 2025 Associates NADA $ 24,613 $ - 11) Others a) Refundable deposits June 30, 2026 December 31, 2025 June 30, 2025 Other related parties Fubon Life $ 370,312 $ 369,891 $ 65,261 - 53 -
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b) Other current liabilities - receipts under custody June 30, 2026 December 31, 2025 June 30, 2025 Other related parties $ 190,333 $ 192,730 $ 183,580 c) Operating expenses For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Associates $ 33,868 $ 32,451 $ 55,644 $ 38,275 Other related parties TMF - 3,840 - 8,840 TNHF 2,000 2,000 5,000 5,000 TFCB 221,927 210,261 430,035 420,850 Others 93,593 90,144 129,575 120,474 $ 351,388 $ 338,696 $ 620,254 $ 593,439 d) Interest income For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Other related parties TFCB $ 14,716 $ 14,713 $ 14,716 $ 14,713 e) mo-coin transactions Subsidiary momo sold mo-coins to related parties amounting to $405,538 thousand and $496,284 thousand for the six months ended June 30, 2026 and 2025, respectively, mainly to provide rewards to users (consumers). 12) Lease arrangements Acquisition of right-of-use assets For the Six Months Ended June 30 2026 2025 Other related parties $ 46,408 $ 113,141 Lease liabilities (including current and non-current portions) June 30, 2026 December 31, 2025 June 30, 2025 Other related parties $ 502,355 $ 580,748 $ 691,845 The leases are conducted by referring to general market prices, and all the terms and conditions conform to normal business practices. - 54 -
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d. Key management compensation The amounts of remuneration of directors and key executives were as follows: For the Three Months Ended June 30 For the Six Months Ended June 30 2026 2025 2026 2025 Short-term employee benefits $ 96,039 $ 92,212 $ 197,681 $ 187,093 Termination and post- employment benefits 977 1,037 1,955 1,970 $ 97,016 $ 93,249 $ 199,636 $ 189,063 30. ASSETS PLEDGED The assets pledged as collateral for bank loans, purchases, performance bonds and lawsuits were as follows: June 30, 2026 December 31, 2025 June 30, 2025 Other current financial assets $ 124,550 $ 134,794 $ 128,036 Service concessions 5,808,378 5,897,738 5,987,098 Other non-current financial assets 379,357 377,999 377,374 $ 6,312,285 $ 6,410,531 $ 6,492,508 31. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS a. Unrecognized commitments June 30, 2026 December 31, 2025 June 30, 2025 Purchases of property, plant and equipment $ 6,839,887 $ 8,318,514 $ 6,759,284 Purchases of inventories and sales commitments, etc. $ 9,675,978 $ 9,213,397 $ 5,245,978 As of June 30, 2026, December 31, 2025 and June 30, 2025, the amounts of lease commitments (the Group as a lessee) commencing after the balance sheet dates were $16,494,801 thousand, $18,799,494 thousand and $21,062,679 thousand, respectively. As of June 30, 2026, December 31, 2025 a nd June 30, 2025, the amount of lease commitments (the Group as a lessor) commencing after the balance sheet dates were $101,656 t housand, $104,606 thousand and $101,656 thousand, respectively. b. As of June 30, 2026, December 31, 2025 a nd June 30, 2025, the amounts of endorsements and guarantees provided to entities in the Group were all $21,700,000 thousand. c. The Group entered into a long-term power purchase agreement with a wind power company. The relative fulfillment period, quantity and price are specified in the agreements. d. The Group provided collection and payment services to contracted parties, guaranteed through an escrow arrangement. As of June 30, 2026, December 31, 2025 and June 30, 2025, the balances of the trust account held with financial institution were $736,989 thousand, $801,397 thousand and $549,107 thousand, respectively. - 55 -
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e. On January 15, 2009, subsidiary TNH signed the BOT contract with the Department of Cultural Affairs of Taipei City Government. The primary terms of the contract are summarized as follows: 1) Construction and operating period: The construction and operating period are 50 y ears from the day following the signing of the contract. 2) Development concession: The total initial amount of concession was $1,238,095 t housand (tax excluded). According to the supplemental agreement signed in November 2014, the concession would be paid with additional business tax from the signing date of the supplemental agreement; thus, the concession was increased by $48,750 thousand. The rest of the concession will be paid over 14 years from fiscal year 2015. As of June 30, 2026, $1,197,625 thousand (tax included) of the concession had been paid. f. In August 2015, Far EasTone Telecommunications Co., Ltd. (FET) filed a statement of civil complaint with the Taipei District Court, in which FET claimed that (i) TWM shall apply for the return of the C4 spectrum block; (ii) TWM shall not use the C4 spectrum block; (iii) TWM shall not use the C1 spectrum block until TWM’s application for the return of the C4 spectrum block is approved by the NCC; and (iv) TWM shall provide $1,005,800 thousand to FET as compensation. In May 2016, the Court decided in favor of FET regarding claims (i), (ii), and (iii) of the lawsuit, and against FET regarding claim (iv) of the lawsuit. TWM and FET appealed with the High Court the reversal of the aforementioned sentences. The High Court dismissed the appeal of TWM regarding claims (i), (ii), and (iii), and regarding claim (iv) of FET, TWM shall pay FET $765,779 thousand, of which $152,584 thousand of the above amount, TWM shall make 5% a nnual interest payment for the period starting from September 5, 2015 to the payment date. TWM and FET appealed the reversal of the aforementioned sentences. In May 2019, the Supreme Court dismissed the portion of the High Court’ s original judgment on other appeal of FET regarding, and dismissed TWM’s payment obligation, and the Supreme Court remanded the case to the High Court. Under the first retrial of the High Court, TWM filed a counterclaim requesting that FET pay $14,482 t housand, as well as a 5% a nnual interest payment for the period starting from the date following the service of the counterclaim until the settlement date. In August 2020, the High Court first retrial results were as follows: for the dismissed claim (iv) stated above, TWM shall pay FET $242,154 thousand of which $142,685 t housand shall have 5% annual interest for the period starting from September 30, 2016 to the payment date, and $99,469 thousand shall have 5% annual interest for the period starting from July 21, 2017 to the payment date. TWM’ s counterclaim was denied. TWM and FET appealed the aforementioned sentences which were not favorable to them. In June 2023, the Supreme Court dismissed the first retrial of the High Court and remanded the case to the High Court. In December 2024, the High Court second retrial results were as follows: for the dismissed claim (iv) stated above, TWM shall pay FET $720,916 thousand with 5% annual interest for the period starting from September 5, 2015 to the payment date. TWM’ s counterclaim was denied. TWM and FET have respectively appealed the aforementioned sentences which were not favorable to them. In December 2025, the Supreme Court dismissed the second retrial of the High Court and remanded the case to the High Court. - 56 -
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32. OTHERS Employee benefits, depreciation, and amortization are summarized as follows: For the Three Months Ended June 30 2026 2025 Classified as Operating Costs Classified as Operating Expenses Total Classified as Operating Costs Classified as Operating Expenses Total Employee benefits Salary $ 738,844 $ 1,805,711 $ 2,544,555 $ 745,387 $ 1,745,599 $ 2,490,986 Insurance expenses 74,059 167,988 242,047 74,895 160,821 235,716 Pension 35,186 79,510 114,696 35,930 75,881 111,811 Others 41,154 95,887 137,041 43,607 105,136 148,743 Depreciation 3,481,678 231,564 3,713,242 3,551,973 225,048 3,777,021 Amortization 1,590,009 492,832 2,082,841 1,580,021 519,152 2,099,173 For the Six Months Ended June 30 2026 2025 Classified as Operating Costs Classified as Operating Expenses Total Classified as Operating Costs Classified as Operating Expenses Total Employee benefits Salary $ 1,486,757 $ 3,687,323 $ 5,174,080 $ 1,516,213 $ 3,526,092 $ 5,042,305 Insurance expenses 149,911 338,341 488,252 153,615 326,223 479,838 Pension 70,629 160,250 230,879 72,359 152,483 224,842 Others 82,851 191,763 274,614 86,763 198,278 285,041 Depreciation 7,006,692 465,730 7,472,422 7,084,592 449,207 7,533,799 Amortization 3,183,961 987,193 4,171,154 3,168,124 1,045,806 4,213,930 Information of employees’ compensation and remuneration of directors According to the Company’ s Articles of Incorporation, the estimated employees’ c ompensation and remuneration of directors are set at the rates of 1% to 3% and no higher than 0.3%, respectively, of profit before income tax, employees’ compensation, remuneration of directors, and amounts reserved in advance, with at least 50% of employees’ compensation to be allocated to non-executive employees. Estimations for employees’ compensation were $158,801 thousand, $113,505 thousand, $304,752 thousand and $240,915 thousand, and remuneration to directors were $15,880 thousand, $11,351 thousand, $30,475 thousand and $24,092 thousand, which were calculated by applying the aforementioned rates, for the three months and the six months ended June 30, 2026 and 2025, respectively. The employees’ compensation and remuneration of directors of 2025 and 2024 shown below were approved by the Board of Directors on March 13, 2026 and February 27, 2025, respectively. There was no difference between the approved amounts and the amounts recognized. For the Year Ended December 31 2025 2024 Employees’ Compensation Paid in Cash Remuneration of Directors Employees’ Compensation Paid in Cash Remuneration of Directors Amounts approved by the Board of Directors $ 500,071 $ 50,007 $ 473,986 $ 47,399 Amounts recognized in the consolidated financial statements $ 500,071 $ 50,007 $ 473,986 $ 47,399 - 57 -
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If there is a change in the approved amounts after the annual consolidated financial statements a re authorized for issue, the difference is recorded as a change in accounting estimate in the next year. Information on the employees’ c ompensation and remuneration of directors approved by the Board of Directors is available at the Market Observation Post System website of the Taiwan Stock Exchange. 33. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES The Group’s significant assets and liabilities denominated in foreign currencies were as follows: June 30, 2026 Foreign Currencies Exchange Rate New Taiwan Dollars Foreign currency assets Monetary items USD $ 60,583 31.865 $ 1,930,473 EUR 324 36.35 11,768 Non-monetary items USD 210,648 31.865 6,712,288 SGD 281 24.64 6,919 JPY 430,899 0.197 84,887 Foreign currency liabilities Monetary items USD 59,957 31.865 1,910,525 EUR 151 36.35 5,498 JPY 9,262 0.197 1,825 December 31, 2025 Foreign Currencies Exchange Rate New Taiwan Dollars Foreign currency assets Monetary items USD $ 55,795 31.375 $ 1,750,582 EUR 163 36.94 6,008 RMB 9,820 4.491 44,103 Non-monetary items USD 112,446 31.375 3,528,002 SGD 324 24.44 7,931 JPY 300,629 0.201 60,517 Foreign currency liabilities Monetary items USD 60,140 31.375 1,886,891 EUR 171 36.94 6,330 JPY 8,022 0.201 1,615 - 58 -
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June 30, 2025 Foreign Currencies Exchange Rate New Taiwan Dollars Foreign currency assets Monetary items USD $ 59,140 29.155 $ 1,724,235 EUR 736 34.16 25,149 RMB 15,528 4.068 63,166 JPY 101,206 0.202 20,433 Non-monetary items USD 131,309 29.155 3,828,324 RMB 64,181 4.068 261,090 SGD 318 22.87 7,278 JPY 300,000 0.202 60,570 Foreign currency liabilities Monetary items USD 57,639 29.155 1,680,461 EUR 100 34.16 3,402 JPY 59,664 0.202 12,046 Refer to Note 23.a for the information related to the Group’s realized and unrealized foreign exchange gains (losses) for the three months and the six months ended June 30, 2026 and 2025. Due to the variety of foreign currency transactions and functional currencies, the Group c ould not disclose the foreign exchange gains (losses) for each foreign currency with significant influence. 34. ADDITIONAL DISCLOSURES a. Information on significant transactions and b. Information on investees: 1) Financing extended to other parties: Table 1 (attached) 2) Endorsements/guarantees provided to other parties: Table 2 (attached) 3) Significant marketable securities held (excluding investments in subsidiaries and associates): Table 3 (attached) 4) Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital: Table 4 (attached) 5) Receivables from related parties of at least NT$100 million or 20% of the paid-in capital: Table 5 (attached) 6) Names, locations and related information of investees on which TWM exercised significant influence (excluding information on investments in mainland China): Table 6 (attached) 7) Business relationships between the parent and the subsidiaries and significant intercompany transactions: Table 7 (attached) - 59 -
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c. Information on investments in mainland China: 1) The names of investees in mainland China, the main businesses and products, issued capital, method of investment, information on inflow or outflow of capital, ownership, net income or loss and recognized investment gain or loss, ending balance, amount received as earnings distributions from the investment, and limitation on investment: Table 8 (attached) 2) Significant direct or indirect transactions with the investee companies, the prices and terms of payment, unrealized gain or loss, and other related information, which is helpful to understand the impact of investment in mainland China on financial reports: None 35. SEGMENT INFORMATION a. Segment revenue and operating results The Group d ivides its business into four reportable segments with different market attributes and operation modes. The four segments are described as follows: Telecommunications: providing mobile communication services, mobile phone sales, fixed-line services, etc. Retail: providing E-commerce shopping, multimedia shopping, etc. Cable television and broadband: providing pay TV, cable broadband services, etc. Others: business other than telecommunications, retail, cable television, broadband, etc. For the Three Months Ended June 30, 2026 Telecommuni- cations Retail Cable Television and Broadband Others Adjustments and Eliminations Total Revenue Revenue from external customers $ 20,778,246 $ 26,924,064 $ 1,599,072 $ 130,994 $ - $ 49,432,376 Inter-segment revenue 1,074,271 168,686 107,781 36,691 ( )1,387,429 - Operating revenue $ 21,852,517 $ 27,092,750 $ 1,706,853 $ 167,685 $( )1,387,429 $ 49,432,376 Operating income $ 4,706,358 $ 792,561 $ 583,590 $ 73,230 $( )36,538 $ 6,119,201 Other segment information related to profit or loss Depreciation and amortization $ 4,815,230 $ 333,336 $ 209,291 $ 45,028 $( )25,320 $ 5,377,565 Finance costs 366,600 EBITDA $ 9,521,588 $ 1,125,897 $ 792,881 $ 118,258 $( )61,858 $ 11,496,766 For the Three Months Ended June 30, 2025 Telecommuni- cations Retail Cable Television and Broadband Others Adjustments and Eliminations Total Revenue Revenue from external customers $ 20,227,069 $ 25,711,644 $ 1,404,825 $ 127,477 $ - $ 47,471,015 Inter-segment revenue 886,324 319,226 94,164 36,896 ( )1,336,610 - Operating revenue $ 21,113,393 $ 26,030,870 $ 1,498,989 $ 164,373 $( )1,336,610 $ 47,471,015 Operating income $ 3,769,834 $ 773,059 $ 604,653 $ 71,706 $( )50,768 $ 5,168,484 Other segment information related to profit or loss Depreciation and amortization $ 4,839,154 $ 348,281 $ 211,967 $ 45,066 $( )24,033 $ 5,420,435 Finance costs 384,623 EBITDA $ 8,608,988 $ 1,121,340 $ 816,620 $ 116,772 $( )74,801 $ 10,588,919 - 60 -
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For the Six Months Ended June 30, 2026 Telecommuni- cations Retail Cable Television and Broadband Others Adjustments and Eliminations Total Revenue Revenue from external customers $ 42,412,693 $ 53,324,910 $ 3,205,714 $ 267,362 $ - $ 99,210,679 Inter-segment revenue 2,198,434 361,306 207,183 73,031 ( )2,839,954 - Operating revenue $ 44,611,127 $ 53,686,216 $ 3,412,897 $ 340,393 $( )2,839,954 $ 99,210,679 Operating income $ 9,233,600 $ 1,581,058 $ 1,163,714 $ 149,322 $( )75,747 $ 12,051,947 Other segment information related to profit or loss Depreciation and amortization $ 9,668,435 $ 670,530 $ 420,455 $ 90,076 $( )50,788 $ 10,798,708 Finance costs 755,956 EBITDA $ 18,902,035 $ 2,251,588 $ 1,584,169 $ 239,398 $( )126,535 $ 22,850,655 For the Six Months Ended June 30, 2025 Telecommuni- cations Retail Cable Television and Broadband Others Adjustments and Eliminations Total Revenue Revenue from external customers $ 40,750,046 $ 51,853,397 $ 2,786,464 $ 248,461 $ - $ 95,638,368 Inter-segment revenue 1,876,846 582,629 185,300 72,692 ( )2,717,467 - Operating revenue $ 42,626,892 $ 52,436,026 $ 2,971,764 $ 321,153 $( )2,717,467 $ 95,638,368 Operating income $ 7,542,122 $ 1,559,049 $ 1,179,064 $ 131,952 $( )94,145 $ 10,318,042 Other segment information related to profit or loss Depreciation and amortization $ 9,658,758 $ 699,113 $ 424,293 $ 90,241 $( )47,172 $ 10,825,233 Finance costs 768,764 EBITDA $ 17,200,880 $ 2,258,162 $ 1,603,357 $ 222,193 $( )141,317 $ 21,143,275 b. Geographical information The Group’ s r evenue is generated mostly from domestic business. Overseas revenue is primarily generated from international calls and data services. Consolidated geographic information for revenue was as follows: For the Six Months Ended June 30 2026 2025 Taiwan, ROC $ 97,632,933 $ 94,034,824 Overseas 1,577,746 1,603,544 $ 99,210,679 $ 95,638,368 - 61 -
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TABLE 1 TAIWAN MOBILE CO., LTD. AND SUBSIDIARIES FINANCING EXTENDED TO OTHER PARTIES FOR THE SIX MONTHS ENDED JUNE 30, 2026 (In Thousands of New Taiwan Dollars) Financial Related Maximum Ending Allowance for Collateral Lending Limit for Lending Company’s No. Lending Company Borrowing Company Statement Account Parties Balance for the Period (Note 1) Balance (Note 1) Drawdown Amounts Interest Rate Nature of Financing Transaction Amounts Reasons for Short- term Financing Impairment Loss Item Value Each Borrowing Company Lending Amount Limits Note 1 TCC TWM Other receivables Yes $ 6,500,000 $ 6,500,000 $ 4,476,000 2.01000%~2.01078% Short-term financing $ - Operation requirements $ - - $ - $ 39,707,120 $ 39,707,120 Note 2 FSD Other receivables Yes 100,000 100,000 80,000 2.01000%~2.01022% Short-term financing - Operation requirements - - - 39,707,120 39,707,120 Note 2 FSNR Other receivables Yes 100,000 100,000 90,000 2.01000% Short-term financing - Operation requirements - - - 39,707,120 39,707,120 Note 2 TFC Other receivables Yes 300,000 300,000 - - Short-term financing - Operation requirements - - - 39,707,120 39,707,120 Note 2 2 WMT TWM Other receivables Yes 5,300,000 5,300,000 5,300,000 2.01000%~2.01056% Short-term financing - Operation requirements - - - 8,632,726 8,632,726 Note 2 TFNM Other receivables Yes 1,500,000 1,500,000 - - Short-term financing - Operation requirements - - - 8,632,726 8,632,726 Note 2 WTVB Other receivables Yes 600,000 600,000 - - Short-term financing - Operation requirements - - - 8,632,726 8,632,726 Note 2 3 TFN TWM Other receivables Yes 12,000,000 12,000,000 11,700,000 2.00944%~2.01078% Short-term financing - Operation requirements - - - 26,180,682 26,180,682 Note 2 4 YJCTV TFNM Other receivables Yes 120,000 120,000 120,000 2.01000% Short-term financing - Repayment of financing - - - 138,634 138,634 Note 3 5 PCTV TFNM Other receivables Yes 350,000 350,000 350,000 2.01000% Short-term financing - Repayment of financing - - - 359,501 359,501 Note 3 6 UCTV TFNM Other receivables Yes 460,000 460,000 420,000 2.01000% Short-term financing - Repayment of financing - - - 724,940 724,940 Note 3 7 GCTV TFNM Other receivables Yes 270,000 270,000 270,000 2.01000% Short-term financing - Repayment of financing - - - 272,220 272,220 Note 3 Note 1: The maximum balance for the period and the ending balance represent quotas, not actual drawdown. Note 2: Where funds are loaned for reasons of business dealings and short-term financing needs, the amount of loaned funds shall be limited to 40% of the lending company’s net worth. For short-term financing needs, the aggregate amount of loaned funds shall not exceed 40% of the lending company’s net worth. The individual loan funds shall be limited to the lowest amount of the following items: (1) 40% of the lending company’s net worth; (2) The amount that the lending company invests in the borrowing entities; or (3) An amount equal to (the share portion of the borrowing entities that the lending company invests in) * (the total loaning amounts of the borrowing company). In the event where any of the following conditions are met, the individual lending amount of loaned funds shall not exceed 40% of the lending company’s net worth and not subject to the restrictions in points (2) and (3) mentioned above: (i) A lending company directly and indirectly owns 100% of the borrowing company, or the borrowing company directly and indirectly owns 100% of the lending company; or (ii) The ultimate parent company of the lending company directly or indirectly owns 100% of the borrowing company. Note 3: Where funds are loaned for reasons of business dealings and short-term financing needs, the amount of loaned funds shall be limited to the total amount of business dealings and 40% of the lending company’s net worth. (1) For reasons of business dealings: The individual lending amount and the aggregate amount of loaned funds shall not exceed the amount of business dealings and the total amount of business dealings, respectively. (2) For short-term financing needs: The individual lending amount and the aggregate amount of loaned funds shall not exceed 40% of the lending company’s net worth. - 62 -
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TABLE 2 TAIWAN MOBILE CO., LTD. AND SUBSIDIARIES ENDORSEMENT/GUARANTEE PROVIDED TO OTHER PARTIES FOR THE SIX MONTHS ENDED JUNE 30, 2026 (In Thousands of New Taiwan Dollars) Company Providing Receiving Party Limits on Endorsements/ Guarantees Amount Maximum Drawdown Amount of Endorsements/ Guarantees Ratio of Accumulated Endorsements/ Guarantees to Net Worth of Maximum Endorsements/ Guarantees Guarantee Provided by Guarantee Guarantee Provided to Subsidiaries in No. Endorsements/ Guarantees Name Nature of Relationship Provided to Each Entity Balance for the Period (Note 1) Ending Balance (Note 1) Amounts (Note 1) Collateralized by Property the Guarantor (Note 1) Amount Allowable Parent Company Provided by a Subsidiary Mainland China Note 0 TWM TFN Note 2 $ 42,000,000 $ 21,500,000 $ 21,500,000 $ 7,000,000 $ - 25.45 $ 84,475,937 Y N N Note 3 FSNR Note 2 200,000 200,000 200,000 200,000 - 0.24 84,475,937 Y N N Note 3 Note 1: The maximum endorsement/guarantee balance for the period, the ending balance, and the drawdown amounts represent quotas, not actual drawdown. Note 2: Direct/indirect subsidiary. Note 3: For 100% directly/indirectly owned subsidiaries, the aggregate endorsement/guarantee amount provided shall not exceed the net worth of TWM, and the upper limit for each subsidiary shall be double the investment amount. - 63 -
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TABLE 3 TAIWAN MOBILE CO., LTD. AND SUBSIDIARIES SIGNIFICANT MARKETABLE SECURITIES HELD (EXCLUDING INVESTMENTS IN SUBSIDIARIES AND ASSOCIATES) JUNE 30 , 2026 (In Thousands of New Taiwan Dollars) At the End of the Period Investing Company Marketable Securities Type and Name Relationship with the Securities Issuer Financial Statement Account Units/Shares (In Thousands) Carrying Amount Percentage of Ownership (%) Fair Value Note TWM Listed Stocks Chunghwa Telecom Co., Ltd. - Current financial assets at FVTOCI 2,174 $ 307,552 0.028 $ 307,552 91APP, Inc. - Non-current financial assets at FVTOCI 7,470 453,429 6.74 453,429 Unlisted Stocks KKCompany Technologies Inc. - Non-current financial assets at FVTOCI 8,587 728,211 4.97 728,211 Cloud Mile Inc. - Non-current financial assets at FVTOCI 5,396 825,782 14.84 825,782 LINE Bank Taiwan Limited - Non-current financial assets at FVTOCI 87,500 702,666 4.375 702,666 TCC/TFN/TID Listed Stocks TWM TWM Non-current financial assets at FVTOCI 663,404 77,286,520 17.82 77,286,520 momo Unlisted Stocks Gaius Automotive Inc. - Non-current financial assets at FVTPL 6,334 305,770 7.07 305,770 LINE Bank Taiwan Limited - Non-current financial assets at FVTOCI 50,000 401,523 2.5 401,523 Note 1: For information on investment subsidiaries and associates, please refer to Table 6 and Table 8. - 64 -
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TABLE 4 TAIWAN MOBILE CO., LTD. AND SUBSIDIARIES TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE SIX MONTHS ENDED JUNE 30, 2026 (In Thousands of New Taiwan Dollars) Transaction Details Transactions with Terms Different from Others Notes/Accounts Payable or Receivable Company Name Related Party Nature of Relationship Purchase/Sale Amount % to Total Payment Terms Unit Price Payment Terms Ending Balance % to Total Note TWM TFN Subsidiary Purchase $ 2,745,516 10 Based on contract terms - - $( )522,766 Note 2 Note 3 TPIA Subsidiary Sale 132,601 - Based on contract terms - - 104,410 1 TFNM Subsidiary Purchase 147,883 1 Based on contract terms - - ( )70,652 Note 2 momo Subsidiary Sale 1,694,222 4 Based on contract terms - - 307,883 3 Purchase 122,190 - Based on contract terms - - ( )20,870 1 TWM&TDS Fubon Insurance Other related party Sale 130,704 - Based on contract terms - - 40,399 - FSNR momo Fellow subsidiary Sale 350,550 59 Based on contract terms - - 72,336 68 TFN kbro Other related party Sale 222,443 4 Based on contract terms - - 73,002 6 TT&T TWM Ultimate parent Sale 622,554 93 Based on contract terms - - 103,694 93 TPIA Fubon Insurance Other related party Sale 230,588 99 Based on contract terms - - 142,465 99 TFNM YJCTV Subsidiary Channel leasing fee 155,386 6 Based on contract terms Note 1 Note 1 - - PCTV Subsidiary Channel leasing fee 208,726 9 Based on contract terms Note 1 Note 1 - - UCTV Subsidiary Channel leasing fee 103,788 4 Based on contract terms Note 1 Note 1 - - momo FSL Subsidiary Purchase 725,291 1 Based on contract terms - - ( )267,818 2 MFS Subsidiary Purchase 113,961 - Based on contract terms - - ( )23,363 - Concord Subsidiaries of associates Purchase 233,140 - Based on contract terms - - ( )67,949 1 Note 1: The companies authorized a related party to deal with the copyrights transactions for cable television. As the said account item was the only one, there was no comparable transaction. Note 2: Including accounts payable and other payables. Note 3: Accounts receivable (payable) was the net amount after being offset. - 65 -
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TABLE 5 TAIWAN MOBILE CO., LTD. AND SUBSIDIARIES RECEIVABLES FROM RELATED PARTIES OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL JUNE 30 , 2026 (In Thousands of New Taiwan Dollars) Overdue Amount Received in Allowance for Company Name Related Party Nature of Relationship Ending Balance Turnover Rate Amount Action Taken Subsequent Period Impairment Loss TWM momo Subsidiary Notes and accounts receivable $ 307,883 10.19 $ - - $ 307,755 $ - Other receivables 66,182 - - 29,962 - TPIA Subsidiary Notes and accounts receivable 104,410 2.54 - - 22,530 - TCC TWM Parent Other receivables 4,487,634 - - 130,007 - WMT TWM Parent Other receivables 5,314,039 - - 601,098 - TFN TWM Ultimate parent Notes and accounts receivable 531,034 10.53 - - 479,369 - Other receivables 11,859,525 - - 144,277 - TT&T TWM Ultimate parent Notes and accounts receivable 103,694 11.96 - - 103,694 - TPIA Fubon Insurance Other related party Notes and accounts receivable 142,465 3.26 - - 39,681 - YJCTV TFNM Parent Notes and accounts receivable 5,116 7.58 - - 2,893 - Other receivables 120,001 - - - - PCTV TFNM Parent Notes and accounts receivable 5,923 7.7 - - 3,357 - Other receivables 350,039 - - 38 - UCTV TFNM Parent Notes and accounts receivable 4,044 7.4 - - 2,250 - Other receivables 420,466 - - - - GCTV TFNM Parent Notes and accounts receivable 2,299 7.64 - - 1,252 - Other receivables 270,354 - - - - momo TWM Ultimate parent Notes and accounts receivable 82,538 11.84 - - 80,525 - Other receivables 49,166 - - 44,018 - TFCB Other related party Notes and accounts receivable 55,195 Note 1 - - 55,191 - Other receivables 216,079 - - 216,079 - FSL momo Parent Notes and accounts receivable 268,368 5.45 - - 129,760 - Note 1: Not applicable due to the transaction partners and the nature of transactions. - 66 -
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TABLE 6 TAIWAN MOBILE CO., LTD. AND SUBSIDIARIES NAMES, LOCATIONS AND RELATED INFORMATION OF INVESTEES ON WHICH TWM EXERCISED SIGNIFICANT INFLUENCE (EXCLUDING INFORMATION ON INVESTMENT IN MAINLAND CHINA) FOR THE SIX MONTHS ENDED JUNE 30, 2026 (In Thousands of New Taiwan Dollars) Investment Amount Balance at the End of the Period Net Income Investor Investee Location Main Businesses and Products June 30, 2026 December 31, 2025 Shares (In Thousands) Percentage of Ownership (%) Carrying Amount (Loss) of the Investee Investment Income (Loss) Note TWM TCC Taiwan Investment $ 40,397,288 $ 40,397,288 502,970 100 $ 23,631,264 $ 2,163,610 $ 2,164,891 Note 1 WMT Taiwan Investment 16,871,894 16,871,894 42,065 100 21,578,957 1,495,997 1,495,718 Note 1 TNH Taiwan Building and operating Songshan Cultural and Creative Park BOT project 1,918,655 1,918,655 191,866 49.9 2,003,510 98,706 49,635 Note 1 FSD Taiwan Virtual asset platform and transaction service provider 100,000 100,000 10,000 100 2,206 ( )25,662 ( )23,139 Note 1 TPC Taiwan Information software service 200,000 200,000 20,000 100 131,223 ( )11,782 ( )11,219 Note 1 FSNR Taiwan Branding agency and retail sales 154,000 100,000 15,400 100 133,216 16,874 17,925 Note 1 TWMFM Taiwan Film production 11,300 11,300 1,130 100 11,277 ( )45 ( )45 SYSTEX Taiwan Information services 3,974,262 3,974,262 32,298 11.86 4,095,961 1,673,093 197,051 Note 1 PACM British Virgin Islands Investment 3,048,008 - 9 30 3,078,594 ( )6 ( )1 Note 2 AppWorks Taiwan Venture capital, investment consulting, and management consulting 235,000 235,000 2,168 51 270,965 46,150 23,537 AppWorks Fund III Taiwan Venture capital 583,292 583,292 57,877 20.14 475,096 ( )26,687 ( )5,374 AppWorks Fund IV Taiwan Venture capital 376,915 355,110 - 16.64 312,728 ( )36,329 ( )6,623 Note 3 Uspace Taiwan Information software service 310,030 310,030 7,212 28.8 258,179 ( )81,030 ( )33,967 Note 1 NADA Taiwan Animation and game investment, production, and distribution 126,700 96,700 5,602 17.88 124,544 ( )31,720 ( )6,982 Note 1 Tropics Taiwan Animation distribution 60,000 60,000 6,000 40 52,247 ( )9,494 ( )3,856 Fubon Green Power Taiwan Energy technical services 400,000 400,000 40,000 10 394,213 ( )19,999 ( )2,000 WeMo Cayman Islands Investment, rental and leasing 391,531 391,531 41,257 17.28 379,642 ( )27,136 ( )7,567 Note 1 Bronci Taiwan Automatic speech recognition 69,659 69,659 660 23.79 73,877 13,084 2,308 TCC TFN Taiwan Fixed line service provider 21,000,000 21,000,000 2,100,000 100 65,452,668 1,963,501 - Note 4 TT&T Taiwan Call center service and telephone marketing 56,210 56,210 2,484 100 92,771 33,300 - Note 4 TDS Taiwan Commissioned maintenance services 25,000 25,000 2,500 100 99,879 5,486 - Note 4 TPIA Taiwan Property insurance agent 5,000 5,000 500 100 76,335 66,335 - Note 4 TFC Taiwan Cloud and information services 200,000 200,000 24,000 100 260,598 10,330 - Note 4 TID Taiwan Investment 3,605,149 3,605,149 104,912 100 9,095,864 1,774 - Note 4 WMT TFNM Taiwan Broadcasting and TV program distribution and investment in cable TV service providers, etc 5,210,443 5,210,443 230,921 100 5,666,448 956,813 - Note 4 GFMT Taiwan Investment 16,984 16,984 1,500 100 16,912 ( )120 - Note 4 GWMT Taiwan Investment 92,189 92,189 8,945 100 95,945 ( )50 - Note 4 WTVB Taiwan TV program provider 222,417 222,417 18,177 100 281,936 ( )7,641 - Note 4 momo Taiwan Wholesale, retail, and retail sale no storefront 8,129,394 8,129,394 119,278 45.01 10,288,776 1,273,354 - Note 4 and 5 FSNR Preparatory office of F81 Taiwan Branding agency and retail sales 54,000 - 5,400 100 54,000 - - Note 4 and 6 TWMFM SFF Taiwan Film production 300 300 30 100 167 ( )47 - Note 4 TFNM YJCTV Taiwan Cable TV service provider 2,355,998 2,355,998 33,940 100 1,750,953 6,037 - Note 4 - 67 -
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Investment Amount Balance at the End of the Period Net Income Investor Investee Location Main Businesses and Products June 30, 2026 December 31, 2025 Shares (In Thousands) Percentage of Ownership (%) Carrying Amount (Loss) of the Investee Investment Income (Loss) Note TFNM MCTV Taiwan Cable TV service provider $ 510,724 $ 510,724 6,248 29.53 $ 538,116 $ 5,343 $ - Note 4 and 7 PCTV Taiwan Cable TV service provider 3,261,073 3,261,073 68,090 100 3,223,542 39,050 - Note 4 UCTV Taiwan Cable TV service provider 1,986,250 1,986,250 169,141 99.22 2,001,477 ( )6,502 - Note 4 GCTV Taiwan Cable TV service provider 1,221,002 1,221,002 51,733 92.38 1,251,217 517 - Note 4 kbro Media Taiwan Film distribution, arts and literature services, and entertainment 341,250 341,250 6,884 33.58 46,937 ( )2,281 - Note 4 M.E. Taiwan Livestreaming artists management services and digital media production 30,628 30,628 967 11.33 35,636 8,352 - Note 4 GFMT UCTV Taiwan Cable TV service provider 16,218 16,218 1,300 0.76 15,387 ( )6,502 - Note 4 GWMT GCTV Taiwan Cable TV service provider 91,910 91,910 3,825 6.83 94,496 517 - Note 4 momo Asian Crown British Virgin Islands Investment - 885,285 - 81.99 - ( )10 - Note 4 and 8 Honest Development Samoa Investment 770,448 770,448 25,107 100 351,967 4,445 - Note 4 FI Taiwan Comprehensive insurance agent 8,000 8,000 1,000 100 15,846 697 - Note 4 FST Taiwan Travel agent 6,000 6,000 3,000 100 48,894 3,909 - Note 4 FSL Taiwan Logistics and transport 250,000 250,000 25,000 100 303,973 15,020 - Note 4 MFS Taiwan Wholesaling 100,000 100,000 10,000 100 110,312 6,088 - Note 4 Prosperous Living Taiwan Wholesale and retail sales 220,850 220,850 22,085 73.62 228,377 8,365 - Note 4 Fubon Green Power Taiwan Energy technical services 200,000 200,000 20,000 5 197,107 ( )19,999 - Note 4 SK Biomedical Taiwan Wholesale and retail sales 6,000 6,000 600 20 4,167 ( )1,287 - Note 4 Asian Crown Fortune Kingdom Samoa Investment - 1,132,789 - 100 - 66 - Note 4 and 8 Fortune Kingdom HK Fubon Multimedia Hong Kong Investment - 1,132,789 - 100 - 170 - Note 4 and 8 Honest Development HK Yue Numerous Hong Kong E-commerce portals and investment 770,448 770,448 5,441 100 351,965 4,445 - Note 4 Note 1: Downstream transactions, upstream transactions, and consolidated unrealized gain or loss, etc., are included. Note 2: Acquired in the current period. Note 3: Percentage of ownership is the percentage of capital contribution. Note 4: The income/loss of the investee was already included in the income/loss of the investor, and is not presented in this table. Note 5: Material non-controlling interests. Note 6: The incorporation registration was completed on July 2, 2026. Note 7: 70.47% of stocks are held under trustee accounts. Note 8: The subsidiaries were resolved to be dissolved by their Board of Directors and are currently in the process of liquidation. Note 9: For information on investments in mainland China, see Table 8 for the details. - 68 -
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TABLE 7 TAIWAN MOBILE CO., LTD. AND SUBSIDIARIES INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT TRANSACTIONS FOR THE SIX MONTHS ENDED JUNE 30, 2026 (In Thousands of New Taiwan Dollars) Nature of Transaction Details Number Company Name Counterparty Relationship (Note 1) Account Amount Transaction Terms (Note 2) Percentage of Consolidated Total Operating Revenue or Total Assets 0 TWM TPIA 1 Notes and accounts receivable $ 104,410 - - momo 1 Notes and accounts receivable 307,883 - - TCC 1 Short-term borrowings 4,476,000 - 2% WMT 1 Short-term borrowings 5,300,000 - 2% TFN 1 Short-term borrowings 11,700,000 - 5% TFN 1 Notes and accounts payable 103,355 - - TFN 1 Other payables 563,283 - - TT&T 1 Other payables 103,694 - - TNH 1 Lease liabilities (current and non-current) 353,459 - - TFN 1 Lease liabilities (current and non-current) 152,382 - - TPIA 1 Operating revenue 132,601 - - momo 1 Operating revenue 1,694,222 - 2% TFN 1 Operating costs 2,745,516 - 3% TFNM 1 Operating costs 147,883 - - momo 1 Operating costs 122,190 - - TT&T 1 Operating expenses 621,587 - 1% TFN 1 Finance costs 112,199 - - 1 TFN TWM 2 Lease liabilities (current and non-current) 101,475 - - 2 FSNR momo 3 Operating revenue 350,550 - - 3 TFNM YJCTV 1 Short-term borrowings 120,000 - - PCTV 1 Short-term borrowings 350,000 - - UCTV 1 Short-term borrowings 420,000 - - GCTV 1 Short-term borrowings 270,000 - - YJCTV 1 Operating revenue 172,340 - - PCTV 1 Operating revenue 228,583 - - UCTV 1 Operating revenue 103,788 - - 4 momo FSL 1 Notes and accounts payable 267,818 - - FSL 1 Operating costs 725,291 - 1% MFS 1 Operating costs 113,961 - - Note 1: 1. Parent to subsidiary. 2. Subsidiary to parent. 3. Between subsidiaries. - 69 -
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Note 2: The terms of transaction are determined in accordance with mutual agreements or general business practices. Note 3: All intra-group transactions, balances, income and expenses are adjusted and eliminated in full upon consolidation. - 70 -
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TABLE 8 TAIWAN MOBILE CO., LTD. AND SUBSIDIARIES INVESTMENTS IN MAINLAND CHINA FOR THE SIX MONTHS ENDED JUNE 30, 2026 (In Thousands of New Taiwan Dollars and Foreign Currencies) Total Amount Investment Type Accumulated Outflow of Investment from Taiwan at the Investment Flows Accumulated Outflow of Investment from Taiwan at Net Income % Ownership through Direct or Carrying Value at the Accumulated Inward Remittance of Earnings at the Investee Company Name Main Businesses and Products of Paid-in Capital (Note 1) Beginning of the Period Outflow Inflow the End of the Period (Loss) of Investee Indirect Investment Investment Income (Loss) End of the Period End of the Period Note FGE Wholesaling $ - b $ 864,596 (USD 14,000) (RMB 89,267) $ - $ 13,136 (USD 412) $ - $ - - $ - $ - $ - Note 2 Shenzhen Hbo Information services and investment 51,568 (RMB 11,000) b - - - - 18,910 100 18,910 254,403 - GHS Wholesaling 234,401 (RMB 50,000) b - - - - 38,015 20 18,500 251,606 63,302 (RMB 13,503) Company Accumulated Investment in Mainland China at the End of the Period Investment Amounts Authorized by Investment Commission, MOEA (Note 2) Upper Limit on Investment Authorized by Investment Commission, MOEA (Note 3) TWM and subsidiaries $ 684,606 (HKD168,539) $ 1,549,202 (USD14,000, RMB89,267 a nd HKD168,539) $ 55,235,192 Note 1: The investment types are as follows: a. Direct investment in mainland China. b. Indirect investments in mainland China through subsidiaries, invested by momo, in third regions. c. Others. Note 2: The liquidation process was completed in December 2025, and the remaining funds were remitted to momo in April 2026. The Group has yet to file an application with the Investment Commission, Ministry of Economic Affairs, for cancellation of the investment amount. Note 3: The upper limit on investment in mainland China is calculated by 60% of the consolidated net worth. - 71 -