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and warranties from Chunghwa. For the year ended December 31, 2011, Senao received NT7.4 billion (US$244.0 million) from Chunghwa. Chunghwa also sells mobile handsets and data cards to Senao. For the year ended December 31, 2011, Chunghwa sold mobile handsets and data cards to Senao that amounted to NT0.8 billion (US$27.5 million). 

Chunghwa acquired network equipment and related supplies from Chunghwa System Integration for approximately NT$1.7 billion (US$56.5 million) in 2011. 

Chunghwa purchased telecommunications exchange facilities and related supplies and replacement parts from Taiwan International Standard Electronics for approximately NT$1.3 billion (US$44.0 million) in 2011. 

On July 28, 2009, we provided a loan to our related party, ST-2 Satellite Ventures Pte., Ltd., in the amount of SG$23.9 million at an interest rate of 6.38% per annum. The outstanding balance of the loan and interest accrued was paid in full on April 1, 2010. 

The foregoing transactions with related parties were determined in accordance with mutual agreements. 

## C. Interests of Experts and Counsel 

Not applicable. 

## ITEM 8. FINANCIAL INFORMATION 

## A. Consolidated Statements and Other Financial Information 

See Item 18 for a list of all consolidated financial statements filed as part of this annual report on Form 20-F. 

Except as described in “Item 4. Information on the Company—B. Business Overview—Legal Proceedings,” we are not currently involved in material litigation or other proceedings that may have or have had in the recent past, significant effects on our financial position or profitability. 

For our policy on dividend distributions, see “Item 10. Additional Information—B. Memorandum and Articles of Incorporation—Dividends and Distributions.” The following table sets forth the dividends declared on each of our common shares and in the aggregate for each of the years ended December 31, 2007, 2008, 2009, 2010 and 2011. All of these dividends were paid, in the fiscal year following the period with respect to which the dividends relate. 

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