Chunghwa Telecom Co., Ltd.

Good afternoon, ladies and gentlemen. Welcome to Zhonghua Telecom conference call for the company's first quarter 2024 operating results. During the presentation, all lines will be in listen-only mode. When the briefing is finished, directions for submitting your questions will be given in the question and answer session. For your information, this conference call is now being broadcast live over the Internet. Webcast replay will be available within an hour after the conference is finished. Please visit CHT IR website www.cht.com.tw slash IR under the IR calendar section. Now I would like to turn it over to Ms. Angela Tsai, Assistant Vice President of Investor Relations. Thank you. Ms. Tsai, please go ahead.

Thank you. I'm Angela Tsai, Assistant Vice President of the Financial Department for Zhonghua Telecom. Welcome to our first quarter 2024 Result Conference call. Joining me on the call today are our Chairman Harrison Guo, Presidents Ivan Lin and Vincent Cheng, our Chief Financial Officer. During today's call, management will begin by providing Chairman's message and our business overview in the first quarter, followed by a discussion of our segment performance, and the financial results. After, we will move on to the question and answer portion of the call. On slide two, please read our disclaimers and notes concerning forward-looking statements. Now, I will turn the call over to Chairman Guo. Chairman Guo, please go ahead.

Chairman Guo Thank you, Angela, and hello, everyone. Welcome to our first quarter 2024 results conference call. In the first quarter, we proudly announced our success in expanding our lead in Taiwan's telecom market amidst the robust three-player landscape. Our revenue share in Taiwan's mobile market continues to steadily grow, climbing from 40.3% to 40.4% quarter over quarter, while subscriber share enjoying an increase from 37.7%, maintaining the growth trajectory after the market consolidation completed last quarter. Our financial performance also speaks for our business success. Total revenue in the first quarter hit a new high for the same period since 2017. Income before tax also reached a record high for the same period since 2016. On the basis of excluding the one-time item of the government compensation for ST2 satellites recognized in the first quarter last year, to invest our leadership in the long-term growth, we have been establishing AI infrastructure to enhance our operations and seize opportunities in the AI megatrend. Our AI-powered network solutions have been successfully used to predict network degradation and optimize energy consumption to enhance our network efficiency and contribute to cost reduction. In addition, generative AI is another technology that we leverage on problem shooting to enhance service quality, response time, and cost efficiency in operations, particularly in relation to network maintenance and the customer service. To capture AI explanation opportunities, we actively deployed computerity across cloud, edge, and the terminals to bring computing resources closer to our customers with an intent to access AI applications. We also plan to establish AI data centers and develop GPU as a service, empowering industries to complete their AI transformations. To achieve this goal, we will team up with local and global ICT partners to establish ecosystems for the AI-powered future. Another value added deployment lies in the expansion of content investments. In addition to network and the platform strengths, we have been continuously investing in quality content to win subscribers over and thus are able to form the largest video platform in Taiwan. We are glad to announce that recently we have acquired exclusive broadcasting rights of the 2024 Paris Summer Olympic Games and believe that this will significantly enrich our content portfolio in the incoming quarter. Moreover, Following the announcement made last December, we officially set up Zhonghua Digital Culture and Creative Capital, CDCCC, in the first quarter to scale up our investment in video content and intellectual property management. In February, our board of directors further approved the investment in fund of cultural content industry managed by CDCCC. This fund will work as an important vehicle to upgrade cultural content industry and further integrate our network, platform, and the content IP to deliver quality content to users. I'd like to share that we were saddened by the serious earthquake that happened in Taiwan in April. And in response, we offered complementary communications to help disaster relief in Hualien by successfully leveraging a low-Earth orbit satellite, LEO. Going forward, in addition to GEO, the geostationary orbit, and the LEO. We also plan to add MEO, the median Earth orbit, to our satellite portfolios this year to continuously strengthen our network resilience and further provide services to enterprise and government customers. Now, let me hand the call over to Ivan. for the business updates on the first quarter of 2024.