EX-99.3

The Company has prepared its consolidated balance sheets as of September 30, 2018 and 2017, the related consolidated statements of comprehensive income for the three months ended September 30, 2018 and 2017, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the nine months ended September 30, 2018 and 2017 in accordance with IAS 34 “Interim Financial Reporting” as issued by the International Accounting Standard Board (IASB). The consolidated financial statements are incomplete as they omit the related footnote disclosures as required under International Financial Reporting Standards as issued by IASB.

Except for the effect of application of IFRS 9 and IFRS 15 discussed below, the application of other new, revised or amended standards and interpretations effective from January 1, 2018 does not have material impact on the Company’s consolidated financial statements.

IFRS 9 supersedes IAS 39 “Financial Instruments: Recognition and Measurement”, with consequential amendments to IFRS 7 “Financial Instruments: Disclosures” and other standards. IFRS 9 sets out the requirements for classification, measurement and impairment of financial assets and hedge accounting.

The requirements for classification, measurement and impairment of financial assets have been applied retrospectively on January 1, 2018, and the requirements for hedge accounting have been applied prospectively. IFRS 9 is not applicable to items that have already been derecognized on or before December 31, 2017.

On the basis of the facts and circumstances that existed on January 1, 2018, the Company performed an assessment of the classifications of financial assets and liabilities and elected not to restate the comparative figures.

The following table shows the original measurement categories and carrying amounts under IAS 39 and the new measurement categories and carrying amounts under IFRS 9 for each class of the Company’s financial assets and financial liabilities as of January 1, 2018.


	IAS 39 Carrying Amount January 1, 2018			Reclassifi- cations			Remea- surements		IFRS 9 Carrying Amount January 1, 2018			Retained Earnings effect on January 1, 2018		Other adjustment effect on January 1, 2018			Non- controlling interests effect on January 1, 2018			Note
Financial assets measured at FVTPL	$	—		$	—		$	—	$	—		$	—	$	—		$	—
Add: reclassification from available for sale (IAS 39) - mandatory reclassification		—			54			—		54			6		(6	)		—			2	)

		—			54			—		54			6		(6	)		—

Financial liabilities measured at FVTPL		(1	)		—			—		(1	)		—		—			—

Financial assets measured at FVOCI- equity investments		—			—			—		—			—		—			—
Add: reclassification from available for sale (IAS 39)—designated at January 1, 2018		—			5,697			1,842		7,539			1,516		327			(1	)		2	)

		—			5,697			1,842		7,539			1,516		327			(1	)

Financial assets measured at Amortized cost		—			—			—		—			—		—			—
Add: reclassification from loans and receivables (IAS 39)		—			68,983			—		68,983			—		—			—			1	)

		—			68,983			—		68,983			—		—			—

Financial liabilities measured at amortized cost		—			—			—		—			—		—			—
Add: reclassification from amortized cost (IAS 39)		—			(39,725	)		—		(39,725	)		—		—			—

		—			(39,725	)		—		(39,725	)		—		—			—

Hedging financial liabilities		—			—			—		—			—		—			—
Add: reclassification from Hedging derivative instrument (IAS 39)		—			(1	)		—		(1	)		—		—			—			3	)

		—			(1	)		—		(1	)		—		—			—

Total	$	(1	)	$	35,008		$	1,842	$	36,849		$	1,522	$	321		$	(1	)

Equity investments in non-listed stocks previously carried at cost under IAS 39 are designated as FVOCI and remeasured at fair values. As a result, financial assets at FVOCI and other equity—unrealized gain or loss on financial assets at FVOCI were increased by $1,842 million and $1,843 million, respectively, and noncontrolling interests was decreased by $1 million.

The Company recognized impairment loss on certain investments in equity securities previously classified as available-for-sale and measured at cost and the loss was accumulated in retained earnings under IAS 39. Since those investments were designated as financial assets measured at FVOCI under IFRS 9 and no impairment assessment is required, an adjustment was made that resulted in a decrease of $1,516 million in other equity—unrealized gain or loss on financial assets at FVOCI and an increase of the $1,516 million in retained earnings on January 1, 2018.

As the Company expects there is no tax obligation upon the disposal of the available-for-sale financial assets, the deferred income tax liabilities was decreased by $1 million, unrealized gain or loss on available-for-sale financial assets was increased by $4 million and noncontrolling interests was decreased by of $3 million, respectively.

IFRS 15 establishes principles for recognizing revenue that apply to all contracts with customers, and supersedes IAS 18 “Revenue”, IAS 11 “Construction Contracts” and a number of revenue-related interpretations.

When applying IFRS 15 and related amendments, the Company allocates the transaction price to each performance obligation identified in the contract on a relative stand-alone selling price basis.

Where the Company enters into transactions which involve both the provision of telecommunications service bundled with products such as handsets, total consideration received from products and telecommunications service in these arrangements is allocated based on each performance obligation’s relative stand-alone selling price. The amount of sales revenue recognized for products is no longer limited to the amount paid by the customer for the products. This will not change the total revenue recognized, but will change the timing of revenue recognition. The Company may recognize more revenue at the beginning of the contract period (i.e., at the time of sale of products), and revenue recognized for telecommunications service in the subsequent contract periods will decrease.

Incremental costs of obtaining contracts will be recognized as an asset to the extent the Company expects to recover those costs. Such asset will be amortized on a basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. Before the application of IFRS 15, the relevant expenditures were recognized as expenses.

IFRS 15 and its related amendments require that when another party is involved in providing goods or services to a customer, the Company is a principal if it controls the specified good or service before that good or service is transferred to a customer. Before the application of IFRS 15, the Company determines whether it is a principal or an agent based on its exposure to the significant risks and rewards associated with the sale of goods or the rendering of services.

Under IFRS 15, the net effect of revenue recognizes, consideration received and receivable is recognized as a contract asset or a contract liability. Before the application of IFRS 15, receivable is recognized or advance receipts and deferred revenue was reduced when revenue was recognized for the contract under IAS 18.

Under IFRS 15, the Company recognized a trade-in liability (other current liabilities) and a right to recover a product (other current assets) when recognizing revenue for the sale with a trade-in right. Before the application of IFRS 15, trade-in right provisions and inventories were recognized when recognizing revenue.

The Company elected to retrospectively apply IFRS 15 to contracts that were not completed on January 1, 2018 and recognized the cumulative effect of the change in the retained earnings on January 1, 2018.

The following table shows the increase (decrease) in assets, liabilities and equity resulting from the application of IFRS 15 on the balance sheet date.

The following table shows the increase (decrease) in net income resulting from the application of IFRS 15.


	September 30, 2018 (Unaudited)				December 31, 2017 (Audited)				September 30, 2017 (Unaudited)
	Amount		%		Amount		%		Amount		%
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	20,325		4	$	28,825		7	$	25,466		6
Financial assets at fair value through profit or loss		196		—		—		—		2		—
Hedging derivative financial assets		—		—		—		—		1		—
Hedging financial assets		—		—		—		—		—		—
Contract assets		5,079		1		—		—		—		—
Trade notes and accounts receivable, net		29,222		6		31,941		7		29,833		7
Receivables from related parties		31		—		49		—		41		—
Inventories		14,012		3		8,840		2		9,041		2
Prepayments		5,069		1		2,188		—		5,143		1
Other current monetary assets		6,359		2		5,308		1		5,447		1
Other current assets		3,056		1		2,183		—		2,745		—

Total current assets		83,349		18		79,334		17		77,719		17

NONCURRENT ASSETS
Financial assets at fair value through other comprehensive income		6,999		2		—		—		—		—
Available-for-sale financial assets		—		—		5,751		1		5,274		1
Investments accounted for using equity method		2,451		1		2,326		1		2,340		1
Contract assets		2,314		—		—		—		—		—
Property, plant and equipment		286,886		63		288,708		64		283,501		65
Investment properties		8,038		2		8,048		2		8,094		2
Intangible assets		51,753		11		54,883		12		44,792		10
Deferred income tax assets		3,284		1		2,730		1		2,373		1
Incremental costs of obtaining contracts		1,588		—		—		—		—		—
Net defined benefit assets		1,069		—		13		—		958		—
Prepayments		3,287		1		3,573		1		3,614		1
Other noncurrent assets		5,234		1		5,536		1		6,048		2

Total noncurrent assets		372,903		82		371,568		83		356,994		83

TOTAL	$	456,252		100	$	450,902		100	$	434,713		100

LIABILITIES AND EQUITY
CURRENT LIABILITIES
Short-term loans	$	120		—	$	70		—	$	423		—
Financial liabilities at fair value through profit or loss		1		—		1		—		—		—
Hedging derivative financial liabilities		—		—		1		—		—		—
Contract liabilities		10,393		2		—		—		—		—
Trade notes and accounts payable		20,546		5		19,396		4		17,643		4
Payables to related parties		544		—		684		—		586		—
Current tax liabilities		8,048		2		8,674		2		6,090		2
Other payables		20,888		5		25,001		6		20,332		5
Provisions		105		—		189		—		146		—
Advance receipts		—		—		8,842		2		9,171		2
Current portion of long-term loans		—		—		—		—		1,600		—
Other current liabilities		1,322		—		1,081		—		1,214		—

Total current liabilities		61,967		14		63,939		14		57,205		13

NONCURRENT LIABILITIES
Contract liabilities		2,560		1		—		—		—		—
Long-term loans		1,600		—		1,600		—		—		—
Deferred income tax liabilities		2,011		—		1,430		—		1,446		—
Provisions		75		—		78		—		68		—
Customers’ deposits		4,664		1		4,671		1		4,548		1
Net defined benefit liabilities		2,086		—		2,704		1		1,567		—
Deferred revenue		—		—		3,612		1		3,612		1
Other noncurrent liabilities		4,539		1		3,458		1		3,548		1

Total noncurrent liabilities		17,535		3		17,553		4		14,789		3

Total liabilities		79,502		17		81,492		18		71,994		16


	September 30, 2018 (Unaudited)					December 31, 2017 (Audited)				September 30, 2017 (Unaudited)
	Amount			%		Amount		%		Amount		%
EQUITY ATTRIBUTABLE TO STOCKHOLDERS OF THE PARENT
Common stocks		77,574			17		77,574		17		77,574		18

Additional paid-in capital		149,762			33		148,091		33		148,071		34

Retained earnings
Legal reserve		77,574			17		77,574		17		77,574		18
Special reserve		2,676			1		2,681		1		2,681		1
Unappropriated earnings		59,574			13		54,633		12		48,353		11

Total retained earnings		139,824			31		134,888		30		128,608		30

Other adjustments		(56	)		—		383		—		351		—

Total equity attributable to stockholders of the parent		367,104			81		360,936		80		354,604		82
NONCONTROLLING INTERESTS		9,646			2		8,474		2		8,115		2

Total equity		376,750			83		369,410		82		362,719		84

TOTAL	$	456,252			100	$	450,902		100	$	434,713		100


	Three Months Ended September 30										Nine Months Ended September 30
	2018					2017					2018					2017
	Amount			%		Amount			%		Amount			%		Amount			%
REVENUES	$	52,705			100	$	56,424			100	$	159,996			100	$	166,629			100
OPERATING COSTS		34,432			65		35,655			63		102,075			64		105,354			63

GROSS PROFIT		18,273			35		20,769			37		57,921			36		61,275			37

OPERATING EXPENSES
Marketing		5,653			11		6,270			11		17,261			10		18,705			11
General and administrative		1,089			2		1,121			2		3,448			2		3,443			2
Research and development		951			2		946			2		2,786			2		2,825			2
Expected credit loss		156			—		—			—		924			1		—			—

Total operating expenses		7,849			15		8,337			15		24,419			15		24,973			15

OTHER INCOME AND EXPENSES		(8	)		—		(16	)		—		(89	)		—		(33	)		—

INCOME FROM OPERATIONS		10,416			20		12,416			22		33,413			21		36,269			22

NON-OPERATING INCOME AND EXPENSES
Interest income		46			—		52			—		144			—		159			—
Other income		269			1		130			—		626			—		634			—
Other gains and losses		(3	)		—		(85	)		—		(24	)		—		(85	)		—
Interest expenses		(4	)		—		(5	)		—		(13	)		—		(16	)		—
Share of profits of associates and joint ventures accounted for using equity method		134			—		72			—		341			—		312			—

Total non-operating income and expenses		442			1		164			—		1,074			—		1,004			—

INCOME BEFORE INCOME TAX		10,858			21		12,580			22		34,487			21		37,273			22
INCOME TAX EXPENSE		2,580			5		3,165			5		4,173			2		5,279			3

NET INCOME		8,278			16		9,415			17		30,314			19		31,994			19

TOTAL OTHER COMPREHENSIVE INCOME (LOSS)
Items that will not be reclassified to profit or loss:
Unrealized gain or loss on investments in equity instruments at fair value through other comprehensive income		(137	)		—		—			—		(824	)		—		—			—
Gain or loss on hedging instruments subject to basis adjustment		—			—		—			—		1			—		—			—
Income tax benefit relating to items that will not be reclassified to profit or loss		—			—		—			—		207			—		—			—

		(137	)		—		—			—		(616	)		—		—			—

Items that may be reclassified subsequently to profit or loss:
Exchange differences arising from the translation of the foreign operations		(16	)		—		11			—		51			—		(175	)		—
Unrealized gain or loss on available-for-sale financial assets		—			—		544			1		—			—		515			—
Cash flow hedges		—			—		(1	)		—		—			—		1			—


	Three Months Ended September 30									Nine Months Ended September 30
	2018					2017				2018					2017
	Amount			%		Amount		%		Amount			%		Amount			%
Share of exchange differences arising from the translation of the foreign operations of associates and joint ventures	$	2			—	$	—		—	$	4			—	$	(3	)		—
Income tax benefit relating to items that may be reclassified subsequently to profit or loss		—			—		—		—		—			—		2			—

		(14	)		—		554		1		55			—		340			—

Total other comprehensive income (loss), net of income tax		(151	)		—		554		1		(561	)		—		340			—

TOTAL COMPREHENSIVE INCOME	$	8,127			16	$	9,969		18	$	29,753			19	$	32,334			19

NET INCOME ATTRIBUTABLE TO
Stockholders of the parent	$	8,071			15	$	9,105		16	$	29,542			19	$	31,037			19
Noncontrolling interests		207			1		310		1		772			—		957			—

	$	8,278			16	$	9,415		17	$	30,314			19	$	31,994			19

COMPREHENSIVE INCOME ATTRIBUTABLE TO
Stockholders of the parent	$	7,935			15	$	9,653		17	$	28,984			19	$	31,393			19
Noncontrolling interests		192			1		316		1		769			—		941			—

	$	8,127			16	$	9,969		18	$	29,753			19	$	32,334			19


EARNINGS PER SHARE
Basic	$	1.04				$	1.17			$	3.81				$	4.00

Diluted	$	1.04				$	1.17			$	3.80				$	4.00


	Equity Attributable to Stockholders of the Parent
													Other Adjustments
													Exchange Differences			Unrealized Gain		Unrealized
					Retained Earnings								Arising from the			or Loss on		Gain or Loss										Total Equity
	Common Stocks		Additional Paid-in Capital		Legal Reserve		Special Reserve		Unappropriated Earnings		Total Retained Earnings		Translation of the Foreign Operations			Available-for -sale Financial Assets		on Financial Assets at FVOCI			Cash Flow Hedges		Gain or Loss on Hedging Instruments		Total Other Adjustments			Attributable to Stockholders of the Parent			Noncontrolling Interests			Total Equity
Net income for the nine months ended September 30, 2018		—		—		—		—		29,542		29,542		—			—		—			—		—		—			29,542			772			30,314
Other comprehensive income (loss) for the nine months ended September 30, 2018		—		—		—		—		206		206		61			—		(826	)		—		1		(764	)		(558	)		(3	)		(561	)

Total comprehensive income (loss) for the nine months ended September 30, 2018		—		—		—		—		29,748		29,748		61			—		(826	)		—		1		(764	)		28,984			769			29,753

Share-based payment transactions of subsidiaries		—		12		—		—		—		—		—			—		—			—		—		—			12			38			50
Net increase in noncontrolling interests		—		54		—		—		—		—		—			—		—			—		—		—			54			278			332

BALANCE, SEPTEMBER 30, 2018	$	77,574	$	149,762	$	77,574	$	2,676	$	59,574	$	139,824	$	(113	)	$	—	$	57		$	—	$	—	$	(56	)	$	367,104		$	9,646		$	376,750


	Nine Months Ended September 30
	2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	$	34,487		$	37,273
Adjustments to reconcile income before income tax to net cash provided by operating activities:
Depreciation		20,614			21,225
Amortization		3,282			2,688
Amortization of incremental costs of obtaining contracts		1,519			—
Expected credit loss		924			—
Provision for doubtful accounts		—			462
Interest expenses		13			16
Interest income		(144	)		(159	)
Dividend income		(396	)		(328	)
Compensation cost of share-based payment transactions		17			18
Share of profits of associates and joint ventures accounted for using equity method		(341	)		(312	)
Loss on disposal of property, plant and equipment		38			33
Gain on disposal of financial instruments		(6	)		(3	)
Loss on disposal of investments accounted for using equity method		—			—
Provision for inventory and obsolescence		123			23
Impairment loss on intangible assets		51			—
Valuation gain on financial assets and liabilities at fair value through profit or loss, net		(5	)		(3	)
Loss (gain) on foreign exchange, net		(3	)		74
Changes in operating assets and liabilities:
Decrease (increase) in:
Financial assets held for trading		—			—
Financial assets mandatorily measured at fair value through profit or loss		(133	)		—
Contract assets		2,570			—
Trade notes and accounts receivable		1,945			1,004
Receivables from related parties		18			(27	)
Inventories		(5,428	)		(1,642	)
Prepayments		(2,602	)		(2,538	)
Other current monetary assets		(238	)		(394	)
Other current assets		(741	)		(623	)
Incremental cost of obtaining contracts		(633	)		—
Increase (decrease) in:
Contract liabilities		2,322			—
Trade notes and accounts payable		1,150			(1,166	)
Payables to related parties		(140	)		(176	)
Other payables		(3,541	)		(3,420	)
Provisions		—			30
Advance receipts		—			(310	)


	Measurement category				Carrying amount
	IAS 39		IFRS 9		IAS 39		IFRS 9		Note
Financial Assets
Cash and cash equivalents		Loans and receivables		Amortized cost	$	28,825	$	28,825		1	)
Equity securities		Available-for-sale		Fair value through profit and loss (FVTPL)		54		54		2	)
		Available-for-sale		Fair value through other comprehensive income (FVOCI) - equity investments	$	5,697	$	7,539		2	)
Trade notes and accounts receivable, receivables from related parties, other current monetary assets and refundable deposits		Loans and receivables		Amortized cost		40,158		40,158		1	)
Financial Liabilities
Short-term loans, trade notes and accounts payable, payables to related parties, partial other payables, customers’ deposit and loan-term loans		Amortized cost		Amortized cost		39,725		39,725
Derivatives		Held-for-trading		FVTPL		1		1
		Hedging derivative financial liabilities		Hedging financial liabilities		1		1		3	)


	Carrying amounts before retrospective adjustments as of January 1, 2018		Adjustments Arising from Initial Application			Carrying amounts after retrospective adjustments as of January 1, 2018
Contract assets—current	$	—	$	6,065		$	6,065

Trade notes and accounts receivable, net	$	31,941		(118	)	$	31,823

Inventories	$	8,840		(132	)	$	8,708

Prepayments—current	$	2,188		(7	)	$	2,181

Other current assets	$	2,183		132		$	2,315

Contract assets—noncurrent	$	—		3,917		$	3,917

Incremental costs of obtaining contracts	$	—		2,474		$	2,474

Total effect on assets			$	12,331

Contract liabilities—current	$	—	$	8,004		$	8,004

Current tax liabilities	$	8,674		2,227		$	10,901

Provisions - current	$	189		(88	)	$	101

Advance receipts	$	8,842		(8,842	)	$	—

Other current liabilities	$	1,081		72		$	1,153

Contract liabilities—noncurrent	$	—		2,626		$	2,626

Deferred revenue	$	3,612		(3,612	)	$	—

Other noncurrent liabilities	$	3,458		1,072		$	4,530

Total effect on liabilities			$	1,459

Total effect on equity (unappropriated earnings)	$	54,633	$	10,872		$	65,505


	September 30, 2018
Contract assets — current	$	5,079
Trade notes and accounts receivable, net		(110	)
Inventories		(82	)
Prepayments — current		(11	)
Other current assets		81
Contract assets — noncurrent		2,314
Incremental costs of obtaining contracts		1,588

Assets	$	8,859

Contract liabilities—current	$	10,393
Current tax liabilities		1,482
Provisions - current		(54	)
Advance receipts		(10,925	)
Other current liabilities		248
Contract liabilities—noncurrent		2,560
Deferred revenue		(3,614	)
Other noncurrent liabilities		1,083

Liabilities	$	1,173

Equity (unappropriated earnings)	$	7,686


	Three months ended September 30, 2018			Nine months ended September 30, 2018
Revenues	$	(514	)	$	(3,021	)
Operating costs		408			1,313
Operating expenses		(134	)		(404	)

Income from operations		(788	)		(3,930	)
Income tax expense		(150	)		(744	)

Net income	$	(638	)	$	(3,186	)

Decrease in net income attributable to:
Stockholders of the parent	$	(638	)	$	(3,186	)
Noncontrolling interests		—			—

	$	(638	)	$	(3,186	)

Impact on earnings per share:
Basic earnings per share	$	(0.08	)	$	(0.41	)

Diluted earnings per share	$	(0.08	)	$	(0.41	)