PART I In January 2008, we established a wholly owned subsidiary named Light Era Development Co., Ltd., a  company that engages in the real estate development business. The management team of Light Era Development  Co., Ltd. has extensive experience in real estate development. Their experience will provide support for our  strategy of redeveloping our real estate holdings. We plan to focus on managing rental revenues from our existing  properties and several new properties that will begin leasing in the near future.  In April 2008, we acquired a 33.33% ownership interest in Viettel-CHT IDC, or Viettel, an internet  database center provider in Vietnam. In acquiring and developing a working relationship with Viettel, we seek to  strengthen our overseas network, further our global expansion strategy and capture the growth opportunities in  the Vietnamese economy and telecommunications industry. Our equity stake in Viettel was reduced slightly from  33.33% to 30% in September 2009 because of our relatively lower capital injection in Viettel’s second round of  capital increase compared with the first round.  To further our expansion into the international telecommunications market overseas, we established two  wholly owned subsidiaries, Chunghwa Telecom Singapore Pte., Ltd. and Chunghwa Telecom Japan Co., Ltd.,  in July and September 2008, respectively. The core businesses of these subsidiaries include data wholesale, IP  transiting services, international private leased circuit, or IPLC, IP VPN and voice wholesale. Both companies  have successfully obtained all the necessary and relevant local telecommunication licenses and permits to  operate. Through these subsidiaries, we hope to strengthen our overseas sales channels, generate sales from  Taiwanese and other multinational corporations, increase international incoming voice traffic and IP transiting  services and increase our overseas revenues.  In September 2008, to reinforce our satellite capabilities by replacing the ST-1 telecommunications  satellite, we established ST-2 Satellite Ventures Pte., Ltd. in Singapore with our partner SingTelSat Pte., Ltd.  Our ownership in ST-2 Satellite Ventures Pte., Ltd. is 38% and we have invested NT$409.1 million in this entity  through to the end of 2010.  In January 2009, we became a 49% stockholder in InfoExplorer Co., Ltd., a company whose core  businesses include IT solution provision, IT application consultation, system integration and package solution.  The combination of InfoExplorer’s IT expertise with our communication technology capabilities will boost our  information and communication technology profile. The stockholders of InfoExplorer Co., Ltd., at the special  meeting of stockholders held on February 25, 2011, approved the merger with International Integrated System  Inc. and e-ToYou International, Inc. in accordance with the Business Mergers and Acquisitions Act. Upon the  merger on April 1, 2011, InfoExplorer Co., Ltd. became the surviving company and International Integrated  System, Inc. and e-ToYou International, Inc. were dissolved. The name of the surviving company is “International  Integrated System, Inc.” and our shareholding is 33.47%.  In April 2009, we acquired a 30% equity interest in So-net Entertainment Taiwan Limited, or So-net, the  fourth largest ISP in Taiwan. We acquired the equity interest in So-net to transform So-net into one of our sub- brands in order to compete against other cable internet service providers.  In September 2009, we increased our stake in Chunghwa Investment from 49% to 89% and became the  parent company of Chunghwa Investment.  In June and July 2010, we acquired a 3.31% and 3.36% equity interest in Innovation Works Limited  respectively. In June 2010, we invested 13.3% in Innovation Works Development Fund, which was established to  support the development of Innovation Works Limited. We believe our investment in Innovation Works Limited,  which mainly invests in mobile internet industry in mainland China, will help open up our business opportunities  in e-commerce, mobile internet and cloud computing services in the mainland.  23