UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

February 10, 2022

 

Commission File Number 001-16125
   
ASE Technology Holding Co., Ltd.
(Translation of registrant’s name into English)
   

26, Chin 3rd Road

Kaohsiung, Taiwan

Republic of China

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F  ☒       Form 40-F ☐    

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐ 

 

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐ 

 

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  ASE TECHNOLOGY HOLDING CO., LTD.
   
   
 Date: February 10, 2022

By:     /s/ Joseph Tung
    Name: Joseph Tung
    Title: Chief Financial Officer

 

 

 

  

 

 

 

Investor Relations Contact:

ir@aseglobal.com

Tel: +886.2.6636.5678

http://www.aseglobal.com

   

ASE Technology Holding Co., Ltd. Reports Unaudited Consolidated Financial Results for the Fourth Quarter and the Full Year of 2021

 

Taipei, Taiwan, R.O.C., February 10, 2022 – ASE Technology Holding Co., Ltd. (TAIEX: 3711, NYSE: ASX) (“We”, “ASEH”, or the “Company”), the leading provider of semiconductor manufacturing services in assembly and test, today reported unaudited net revenues1 of NT$172,936 million for 4Q21, up by 16% year-over-year and up by 15% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$30,916 million, up from a net income attributable to shareholders of the parent of NT$10,044 million in 4Q20 and up from a net income attributable to shareholders of the parent of NT$14,176 million in 3Q21. Basic earnings per share for the quarter were NT$7.20 (or US$0.518 per ADS), compared to NT$2.35 for 4Q20 and NT$3.29 for 3Q21. Diluted earnings per share for the quarter were NT$6.99 (or US$0.504 per ADS), compared to NT$2.30 for 4Q20 and NT$3.20 for 3Q21.

 

For the full year of 2021, the Company reported unaudited net revenues of NT$569,997 million and net income attributable to shareholders of the parent of NT$63,908 million. Basic earnings per share for the full year of 2021 were NT$14.84 (or US$1.061 per ADS). Diluted earnings per share for the full year of 2021 were NT$14.40 (or US$1.029 per ADS).

 

RESULTS OF OPERATIONS

 

4Q21 Results Highlights – Consolidated

 

l Net revenue contribution from packaging operations, testing operations, EMS operations and others, each represented approximately 44%, 8%, 47% and 1%, respectively, of total net revenues for the quarter.

 

l Cost of revenue was NT$140,042 million for the quarter, up from NT$119,881 million in 3Q21.

 

- Raw material cost totaled NT$93,182 million for the quarter, representing 54% of total net revenues.

 

- Labor cost totaled NT$16,547 million for the quarter, representing 10% of total net revenues.

 

- Depreciation, amortization and rental expenses totaled NT$12,842 million for the quarter.

 

 

1 All financial information presented in this press release is unaudited, consolidated and prepared in accordance with Taiwan-IFRS (International Financial Reporting Standards as endorsed for use in the R.O.C.). Such financial information is generated internally by us and has not been subjected to the same review and scrutiny, including internal auditing procedures and audit by our independent auditors, to which we subject our audited consolidated financial statements, and may vary materially from the audited consolidated financial information for the same period. Any evaluation of the financial information presented in this press release should also take into account our published audited consolidated financial statements and the notes to those statements. In addition, the financial information presented is not necessarily indicative of our results of operations for any future period.

 

 

 

l Gross margin decreased 1.4 percentage points to 19.0% in 4Q21 from 20.4% in 3Q21.

 

l Operating margin was 11.3% in 4Q21, compared to 12.2% in 3Q21.

 

l In terms of non-operating items:

 

- Net interest expense was NT$553 million.

 

- Net foreign exchange gain of NT$496 million was primarily attributable to the depreciation of U.S. dollar against New Taiwan dollar.

 

- Loss on valuation of financial assets and liabilities was NT$483 million.

 

- Net gain on equity-method investments was NT$192 million.

 

- Other net non-operating income of NT$18,069 million was primarily attributable to gain on disposal of subsidiaries and miscellaneous income. Total non-operating income for the quarter was NT$17,721 million.

 

l Income before tax was NT$37,336 million for 4Q21, compared to NT$18,474 million in 3Q21. We recorded income tax expenses of NT$5,592 million for the quarter, compared to NT$3,630 million in 3Q21.

 

l In 4Q21, net income attributable to shareholders of the parent was NT$30,916 million, compared to NT$10,044 million in 4Q20 and NT$14,176 million in 3Q21.

 

l Our total number of shares outstanding at the end of the quarter was 4,408,018,732, including treasury stock owned by our subsidiaries and stocks repurchased in 4Q21. Our 4Q21 basic earnings per share of NT$7.20 (or US$0.518 per ADS) were based on 4,294,230,371 weighted average numbers of shares outstanding in 4Q21. Our 4Q21 diluted earnings per share of NT$6.99 (or US$0.504 per ADS) were based on 4,343,537,564 weighted average number of shares outstanding in 4Q21.

 

4Q21 Results Highlights – ATM2

 

l Cost of revenues was NT$66,217 million for the quarter, up by 1% sequentially.

 

- Raw material cost totaled NT$25,423 million for the quarter, representing 28% of total net revenues.

 

- Labor cost totaled NT$13,961 million for the quarter, representing 15% of total net revenues.

 

- Depreciation, amortization and rental expenses totaled NT$11,714 million for the quarter.

 

l Gross margin increased 0.6 percentage points to 28.0% in 4Q21 from 27.4% in 3Q21.

 

l Operating margin was 17.5% in 4Q21, compared to 17.3% in 3Q21.

 

4Q21 Results Highlights – EMS

 

l Cost of revenues for the quarter was NT$74,436 million, up by 35% sequentially.

 

- Raw material cost totaled NT$67,610 million for the quarter, representing 83% of total net revenues.

 

- Labor cost totaled NT$2,468 million for the quarter, representing 3% of total net revenues.

 

 

2 ATM stands for Semiconductor Assembly, Testing and Material.

 

 

- Depreciation, amortization and rental expenses totaled NT$893 million for the quarter.

 

l Gross margin decreased 0.9 percentage points to 8.7% in 4Q21 from 9.6% in 3Q21.

 

l Operating margin was 4.4% in 4Q21, compared to 4.3% in 3Q21.

 

2021 Full-Year Results Highlights – Consolidated

 

l Net revenues for the full year of 2021 amounted to NT$569,997 million, up by 20% from 2020. The revenue contribution from packaging operations, testing operations, EMS operations and others ,each represented approximately 48%, 9%, 42% and 1%, respectively, of total net revenues for the year.

 

l Cost of revenue for the year of 2021 was NT$459,628 million, compared with NT$398,994 million in 2020.

 

- Raw material cost totaled NT$280,789 million for the year, representing 49% of total net revenues.

 

- Labor cost totaled NT$65,434 million for the year, representing 12% of total net revenues.

 

- Depreciation, amortization and rental expenses totaled NT$50,068 million for the year.

 

l Gross margin increased 3.1 percentage points to 19.4% in 2021 from 16.3% in 2020.

 

l Operating margin increased to 10.9% in 2021 from 7.3% in 2020.

 

l Total non-operating income for the year was NT$18,211 million, compared to total non-operating expenses of NT$857 million for 2020.

 

l Income before tax was NT$80,336 million for 2021. We recognized an income tax expense of NT$14,322 million for the year.

 

l In 2021, net income attributable to shareholders of the parent amounted to NT$63,908 million, compared with a net income attributable to shareholders of the parent of NT$27,593 million in 2020.

 

l Our total number of shares outstanding at the end of the year was 4,408,018,732, including treasury stock owned by our subsidiaries and stocks repurchased in 4Q21. Our 2021 basic earnings per share of NT$14.84 (or US$1.061 per ADS) were based on 4,305,348,164 weighted average numbers of shares outstanding in 2021. Our 2021 diluted earnings per share of NT$14.40 (or US$1.029 per ADS) were based on 4,365,667,867 weighted average number of shares outstanding in 2021.

 

2021 Full-Year Results Highlights – ATM

 

l Cost of revenues for the full year of 2021 was NT$246,133 million, compared with NT$220,863 million in 2020.

 

- Raw material cost totaled NT$87,967 million for the year, representing 26% of total net revenues.

 

- Labor cost totaled NT$55,527 million for the year, representing 17% of total net revenues.

 

- Depreciation, amortization and rental expenses totaled NT$45,831 million for the year.

 

l Gross margin increased to 26.5% in 2021 from 21.2% in 2020.

 

 

 

l Operating margin increased to 16.0% in 2021 from 9.8% in 2020.

 

2021 Full-Year Results Highlights – EMS

 

l Cost of revenues was NT$218,040 million, up by 17% from 2020.

 

- Raw material cost totaled NT$192,287 million for the year, representing 80% of total net revenues.

 

- Labor cost totaled NT$9,483 million for the year, representing 4% of total net revenues.

 

- Depreciation, amortization and rental expenses totaled NT$3,535 million for the year.

 

l Gross margin decreased to 9.0% in 2021 from 9.2% in 2020.

 

l Operating margin decreased to 3.6% in 2021 from 3.8% in 2020.

 

LIQUIdiTY AND CAPITAL RESOURCES

 

l Capital expenditures in 4Q21 totaled US$472 million, of which US$231 million were used in packaging operations, US$160 million in testing operations, US$68 million in EMS operations and US$13 million in interconnect materials operations and others.

 

l For the full year of 2021, we spent US$2,021 million for capital expenditures, including US$1,311 million in packaging operations, US$496 million in testing operations, US$177 million in EMS operations and US$37 million in interconnect materials operations and others.

 

l As of December 31, 2021, total unused credit lines amounted to NT$278,796 million.

 

l Current ratio was 1.39 and net debt to equity ratio was 0.54 as of December 31, 2021.

 

l Total number of employees was 95,731 as of December 31, 2021, compared to 104,471 as of September 30, 2021.

 

Business Review

 

Customers

 

ATM consolidated Basis

 

l Our five largest customers together accounted for approximately 45% of our total net revenues in 4Q21, compared to 44% in 3Q21. Two customers each accounted for more than 10% of our total net revenues in 4Q21 individually.

 

l Our top 10 customers contributed 56% of our total net revenues in 4Q21, compared to 55% in 3Q21.

 

l Our customers that are integrated device manufacturers or IDMs accounted for 31% of our total net revenues both in 4Q21 and 3Q21.

 

EMS Basis

 

l Our five largest customers together accounted for approximately 77% of our total net revenues in 4Q21, compared to 74% in 3Q21. One customer accounted for more than 10% of our total net revenues in 4Q21.

 

 

 

l Our top 10 customers contributed 84% of our total net revenues in 4Q21, compared to 81% in 3Q21.

 

About ASE Technology Holding Co., Ltd.

 

ASEH is the leading provider of semiconductor manufacturing services in assembly and test. The Company develops and offers complete turnkey solutions covering front-end engineering test, wafer probing and final test, as well as IC packaging, materials and electronic manufacturing services through USI with superior technologies, breakthrough innovations, and advanced development programs. With advanced technological capabilities and a global presence spanning Taiwan, China, South Korea, Japan, Singapore, Malaysia and Mexico as well as the United States and Europe, ASEH has established a reputation for reliable, high quality products and services. For more

 

information, please visit our website at https://www.aseglobal.com.

 

Safe Harbor Notice

 

This press release contains "forward-looking statements" within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. Although these forward-looking statements, which may include statements regarding our future results of operations, financial condition or business prospects, are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on these forward-looking statements, which apply only as of the date of this press release. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan” and similar expressions, as they relate to us, are intended to identify these forward-looking statements in this press release. These forward-looking statements are necessarily estimates reflecting the best judgment of our senior management and our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied by the forward-looking statements for reasons including, among others, risks associated with cyclicality and market conditions in the semiconductor or electronic industry; changes in our regulatory environment, including our ability to comply with new or stricter environmental regulations and to resolve environmental liabilities; demand for the outsourced semiconductor packaging, testing and electronic manufacturing services we offer and for such outsourced services generally; the highly competitive semiconductor or manufacturing industry we are involved in; our ability to introduce new technologies in order to remain competitive; international business activities; our business strategy; our future expansion plans and capital expenditures; the strained relationship between the Republic of China and the People’s Republic of China; general economic and political conditions; the recent shift in United States trade policies; possible disruptions in commercial activities caused by natural or human-induced disasters; fluctuations in foreign currency exchange rates; and other factors.  For a discussion of these risks and other factors, please see the documents we file from time to time with the Securities and Exchange Commission, including the 2020 Annual Report on Form 20-F filed on April 6, 2021.

 

 

 

Supplemental Financial Information

(Unaudited)

 

Consolidated Operations

  4Q/21 3Q/21 4Q/20
EBITDA (NT$ Millions) 51,938 32,655 26,130

 

ATM Consolidated Operations

  4Q/21 3Q/21 4Q/20
Net Revenues (NT$ Millions) 91,958 90,092 72,752
Revenues by Application      
Communication 50% 51% 52%
Computing 16% 15% 14%
Automotive, Consumer & Others 34% 34% 34%
Revenues by Type      
Bumping, Flip Chip, WLP & SiP 38% 36% 35%
Wirebonding 37% 39% 39%
Discrete and Others 8% 8% 9%
Testing 15% 15% 15%
Material 2% 2% 2%
Capacity & EBITDA      
CapEx (US$ Millions)* 404 407 359
EBITDA (NT$ Millions) 47,090 28,588 21,822
Number of Wirebonders 25,803 29,943 26,461
Number of Testers 4,890 6,149 5,680

 

EMS Operations

  4Q/21 3Q/21 4Q/20
Net Revenues (NT$ Millions) 81,544 61,127 79,149
Revenues by End Application      
Communication 38% 38% 45%
Computing 8% 10% 4%
Consumer 38% 33% 39%
Industrial 11% 12% 8%
Automotive 4% 5% 3%
Others 1% 2% 1%
Capacity      
CapEx (US$ Millions)* 68 60 19

* Capital expenditure excludes building construction costs.

 

 

 

ASE Technology Holding Co., Ltd.

Summary of Consolidated Statement of Comprehensive Income Data

(In NT$ millions, except per share data)

(Unaudited)

 

  For the three months ended   For the year ended
 

Dec. 31

2021

 

Sep. 30

2021

 

Dec. 31

2020

 

Dec. 31

2021

 

Dec. 31

2020

 
Net revenues:                    
Packaging 75,366   73,996   57,260   272,544   218,667  
Testing 13,756   13,416   10,667   49,979   47,271  
EMS 81,541   61,116   79,141   239,488   204,691  
Others 2,273   2,137   1,809   7,986   6,349  
Total net revenues 172,936   150,665   148,877   569,997   476,978  
                     
Cost of revenues (140,042)   (119,881)   (125,578)   (459,628)   (398,994)  
Gross profit 32,894   30,784   23,299   110,369   77,984  
                     
Operating expenses:                    
Research and development (5,714)   (5,495)   (4,929)   (21,053)   (19,301)  
Selling, general and administrative (7,565)   (6,863)   (7,124)   (27,191)   (23,806)  
Total operating expenses (13,279)   (12,358)   (12,053)   (48,244)   (43,107)  
Operating income 19,615   18,426   11,246   62,125   34,877  
                     
Net non-operating (expenses) income:                    
Interest expense - net (553)   (562)   (592)   (2,257)   (2,916)  
Foreign exchange gain (loss) 496   66   51   1,395   1,006  
Gain (loss) on valuation of financial assets and liabilities

(483)

 

 

(349)

 

  165  

(1,490)

 

  (72)  
Gain (loss) on equity-method investments 192   414   169   974   512  
Others 18,069   479   1,565   19,589   2,327  
Total non-operating income (expenses) 17,721   48   1,358   18,211   857  
Income before tax 37,336   18,474   12,604   80,336   35,734  
                     
Income tax expense (5,592)   (3,630)   (1,839)   (14,322)   (6,457)  

Income from continuing operations and

before non-controlling interest

31,744   14,844   10,765   66,014   29,277  
Non-controlling interest (828)   (668)   (721)   (2,106)   (1,684)  
                     

Net income attributable to

shareholders of the parent

30,916

 

 

14,176

 

 

10,044

 

 

63,908

 

 

27,593

 

 
                     
Per share data:                    
Earnings (losses) per share                    
– Basic NT$7.20   NT$3.29   NT$2.35   NT$14.84   NT$6.47  
– Diluted NT$6.99   NT$3.20   NT$2.30   NT$14.40   NT$6.31  
                     
Earnings (losses) per equivalent ADS                    
– Basic US$0.518   US$0.236   US$0.163   US$1.061   US$0.438  
– Diluted US$0.504   US$0.230   US$0.160   US$1.029   US$0.427  
                     

Number of weighted average shares used in

diluted EPS calculation (in thousands)

4,343,537   4,370,715   4,295,951   4,365,668   4,288,633  
                     
FX (NTD/USD) 27.78   27.79   28.78   27.98   29.54  

 

 

ASE Technology Holding Co., Ltd.

Summary of Consolidated Statement of Comprehensive Income Data – ATM

(In NT$ millions, except per share data)

(Unaudited)

 

  For the three months ended   For the year ended
 

Dec. 31

2021

 

Sep. 30

2021

 

Dec. 31

2020

 

Dec. 31

2021

 

Dec. 31

2020

 
Net revenues:                    
Packaging 76,664   75,221   60,825   279,365   228,574  
Testing 13,756   13,416   10,667   49,981   47,277  
Direct Material 1,502   1,429   1,229   5,346   4,314  
Others 36   26   31   113   132  
Total net revenues 91,958   90,092   72,752   334,805   280,297  
                     
Cost of revenues (66,217)   (65,378)   (56,274)   (246,133)   (220,863)  
Gross profit 25,741   24,714   16,478   88,672   59,434  
                     
Operating expenses:                    
Research and development (4,479)   (4,254)   (3,882)   (16,259)   (15,133)  
Selling, general and administrative (5,206)   (4,829)   (4,594)   (18,981)   (16,692)  
Total operating expenses (9,685)   (9,083)   (8,476)   (35,240)   (31,825)  
Operating income 16,056   15,631   8,002   53,432   27,609  
                     

 

 

ASE Technology Holding Co., Ltd.

Summary of Consolidated Statement of Comprehensive Income Data – EMS

(In NT$ millions, except per share data)

(Unaudited)

 

  For the three months ended   For the year ended
 

Dec. 31

2021

 

Sep. 30

2021 

 

Dec. 31

2020

 

Dec. 31

2021

 

Dec. 31

2020

 
Net revenues:                    
Total net revenues 81,544   61,127   79,149   239,519   204,723  
                     
Cost of revenues (74,436)   (55,244)   (72,153)   (218,040)   (185,802)  
Gross profit 7,108   5,883   6,996   21,479   18,921  
                     
Operating expenses:                    
Research and development (1,256)   (1,270)   (1,073)   (4,897)   (4,267)  
Selling, general and administrative (2,253)   (1,955)   (2,460)   (7,876)   (6,852)  
Total operating expenses (3,509)   (3,225)   (3,533)   (12,773)   (11,119)  
Operating income 3,599   2,658   3,463   8,706   7,802  
                     

 

 

ASE Technology Holding Co., Ltd.

Summary of Consolidated Balance Sheet Data

(In NT$ millions)

(Unaudited)

 

  As of Dec. 31, 2021   As of Sep. 30, 2021
               
Current assets:              
Cash and cash equivalents     76,073       53,419
Financial assets – current     3,075       4,133
Notes and accounts receivable     115,462       108,156
Inventories     73,245       77,830
Others     24,503       16,695
Total current assets     292,358       260,233
               

Financial assets – non-current & Investments – equity

method

   

23,260

 

     

20,915

 

Property plant and equipment     239,867       252,384
Right-of-use assets     10,680       10,321
Intangible assets     75,980       77,283
Others     30,789       29,123
Total assets     672,934       650,259
               
Current liabilities:              
Short-term borrowings     41,037       36,610
Current portion of bonds payable & Current portion of long-term borrowings    

14,429

 

     

6,539

 

Notes and accounts payable     84,470       83,060
Others     70,992       66,417
Total current liabilities     210,928       192,626
               
Bonds payable     42,365       48,498
Long-term borrowings3     121,946       137,015
Other liabilities     23,062       21,281
Total liabilities     398,301       399,420
               
Equity attributable to shareholders of the parent     260,077       235,186
Non-controlling interests     14,556       15,653
Total liabilities & shareholders’ equity     672,934       650,259
               
               
Current Ratio     1.39       1.35
Net Debt to Equity Ratio     0.54       0.71

_____________________

3Long-term borrowings include long-term loans and bills payable.

 

 

 

ASE Technology Holding Co., Ltd.

Summary of Consolidated Cash Flow Statements

(In NT$ millions)

(Unaudited)

 

   

For the three months ended

 

For the year ended

 
    Dec. 31   Sep. 30   Dec. 31   Dec. 31   Dec. 31  
  2021 2021 2020 2021 2020
Cash Flows from Operating Activities:                      
Profit before income tax   37,336   18,474   12,604   80,336   35,734  
Depreciation & amortization   14,070   13,864   12,764   54,524   51,259  
Other operating activities items   (18,537)   (17,505)   2,754   (53,174)   (11,932)  
Net cash generated from operating activities   32,869   14,833   28,122   81,686   75,061  
Cash Flows from Investing Activities:                      

Net payments for property, plant

and equipment

  (16,513)   (20,294)   (15,139)   (69,301)   (57,628)  
Other investment activities items   21,812   (139)   (4,859)   20,210   (3,319)  
Net cash generated from (used in) investing activities   5,299   (20,433)   (19,998)   (49,091)   (60,947)  
Cash Flows from Financing Activities:                      
Total net proceeds from (repayment of) debts   (5,936)   25,319   (15,686)   22,343   (8,285)  
Dividends paid   -   (18,083)   -   (18,083)   (8,521)  
Other financing activities items   (9,810)   (854)   989   (10,074)   (5,189)  
Net cash generated from (used in) financing activities   (15,746)   6,382   (14,697)   (5,814)   (21,995)  
Foreign currency exchange effect   232   (350)   638   (2,246)   (712)  

Net increase (decrease) in cash

and cash equivalents

  22,654   432   (5,935)   24,535   (8,593)  
Cash and cash equivalents at the beginning of period  

53,419

 

  52,987   55,814   51,538   60,131  

Cash and cash equivalents at the

end of period

  76,073   53,419   49,879   76,073   51,538  
Cash and cash equivalents in the consolidated balance sheet   76,073   53,419   51,538   76,073   51,538  
Cash and cash equivalents included in disposal groups held for sale   -   -   (1,659)   -   -  
                       

 

 

 

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