TAIPEI, Taiwan, R.O.C., April 28, 2022 /PRNewswire/ -- ASE Technology Holding Co., Ltd. (TAIEX: 3711, NYSE: ASX) ("We", "ASEH", or the "Company"), the leading provider of semiconductor assembly and test services (ATM) and electronic manufacturing services (EMS), today reported its unaudited net revenues[1] of NT$144,391 million for 1Q22, up by 21% year-over-year and down by 17% sequentially (or up by 27% year-over-year and down by 13% sequentially on pro forma basis). Net income attributable to shareholders of the parent for the quarter totaled NT$12,907 million, up from a net income attributable to shareholders of the parent of NT$8,477 million in 1Q21 and down from a net income attributable to shareholders of the parent of NT$30,916 million in 4Q21 (or up from a net income attributable to shareholders of the parent of NT$7,981 million in 1Q21 and down from a net income attributable to shareholders of the parent of NT$14,459 million in 4Q21 on pro forma basis).  Basic earnings per share for the quarter were NT$3.01 (or US$0.216 per ADS), compared to NT$1.97 for 1Q21 and NT$7.20 for 4Q21 (or NT$1.85 for 1Q21 and NT$3.37 for 4Q21 on pro forma basis).  Diluted earnings per share for the quarter were NT$2.92 (or US$0.210 per ADS), compared to NT$1.92 for 1Q21 and NT$6.99 for 4Q21 (or NT$1.80 for 1Q21 and NT$3.21 for 4Q21 on pro forma basis).

We are providing the unaudited pro forma financial information to aid you in your analysis of the financial aspects of our disposal of the China Sites in 4Q21. The unaudited pro forma financial information was based on our historical financial statements and China sites' historical financial statements, given effect to the disposal as if it had occurred for the preceding quarters of 1Q21 and 4Q21. For more details on our operations, please refer to "Summary of Consolidated Statement of Income Data" and "Summary of Consolidated Statement of Income Data – ATM."

RESULTS OF OPERATIONS

1Q22 Results Highlights – Consolidated

  • Net revenues contribution from packaging operations, testing operations, EMS operations and others, each represented approximately 47%, 9%, 42% and 2%, respectively, of total net revenues for the quarter.
  • Cost of revenues was NT$115,920 million for the quarter, down from NT$140,042 million in 4Q21.
    • Raw material cost totaled NT$72,117 million for the quarter, representing 50% of total net revenues.
    • Labor cost totaled NT$16,148 million for the quarter, representing 11% of total net revenues.
    • Depreciation, amortization and rental expenses totaled NT$12,318 million for the quarter.
  • Gross margin increased 0.7 percentage points to 19.7% in 1Q22 from 19.0% in 4Q21.
  • Operating margin was 11.2% in 1Q22, compared to 11.3% in 4Q21.
  • In terms of non-operating items:
    • Net interest expense was NT$432 million.
    • Net foreign exchange loss of NT$1,104 million was primarily attributable to the appreciation of U.S. dollar against New Taiwan dollar.
    • Gain on valuation of financial assets and liabilities was NT$1,406 million.
    • Net gain on equity-method investments was NT$199 million.
    • Other net non-operating income of NT$481 million was primarily attributable to miscellaneous income.  Total non-operating income for the quarter was NT$550 million.
  • Income before tax was NT$16,663 million for 1Q22, compared to NT$37,336 million in 4Q21.  We recorded income tax expenses of NT$3,278 million for the quarter, compared to NT$5,592 million in 4Q21.
  • In 1Q22, net income attributable to shareholders of the parent was NT$12,907 million, compared to NT$8,477 million in 1Q21 and NT$30,916 million in 4Q21.
  • Our total number of shares outstanding at the end of the quarter was 4,357,508,832, including treasury stock owned by our subsidiaries in 1Q22.  Our 1Q22 basic earnings per share of NT$3.01 (or US$0.216 per ADS) were based on 4,289,978,359 weighted average numbers of shares outstanding in 1Q22.  Our 1Q22 diluted earnings per share of NT$2.92 (or US$0.210 per ADS) were based on 4,341,041,922 weighted average number of shares outstanding in 1Q22.

1Q22 Results Highlights – ATM

  • Net revenues were NT$84,025 million, down by 9% sequentially or down by 1% on pro forma basis.
  • Cost of revenues was NT$60,924 million for the quarter, down by 8% sequentially.
    • Raw material cost totaled NT$22,913 million for the quarter, representing 27% of total net revenues.
    • Labor cost totaled NT$13,555 million for the quarter, representing 16% of total net revenues.
    • Depreciation, amortization and rental expenses totaled NT$11,146 million for the quarter.
  • Gross margin decreased 0.5 percentage point to 27.5% in 1Q22 from 28.0% in 4Q21.
  • Operating margin was 16.7% in 1Q22, compared to 17.5% in 4Q21.

1Q22 Results Highlights – EMS

  • Net revenues were NT$61,166 million, down by 25% sequentially.
  • Cost of revenues for the quarter was NT$55,786 million, down by 25% sequentially.
    • Raw material cost totaled NT$49,100 million for the quarter, representing 80% of total net revenues.
    • Labor cost totaled NT$2,482 million for the quarter, representing 4% of total net revenues.
    • Depreciation, amortization and rental expenses totaled NT$904 million for the quarter.
  • Gross margin increased 0.1 percentage points to 8.8% in 1Q22 from 8.7% in 4Q21.
  • Operating margin was 3.6% in 1Q22, compared to 4.4% in 4Q21.

LIQUIDITY AND CAPITAL RESOURCES

  • Capital expenditures in 1Q22 totaled US$443 million, of which US$311 million were used in packaging operations, US$96 million in testing operations, US$26 million in EMS operations and US$10 million in interconnect materials operations and others.
  • Total unused credit lines amounted to NT$285,878 million as of March 31, 2022.
  • Current ratio was 1.22 and net debt to equity ratio was 0.52 as of March 31, 2022.
  • Total number of employees was 95,105 as of March 31, 2022, compared to 95,727 as of December 31, 2021.

BUSINESS REVIEW

Customers

ATM BASIS

  • Our five largest customers together accounted for approximately 47% of our total net revenues in 1Q22, compared to 45% in 4Q21.  Two customers each accounted for more than 10% of our total net revenues in 1Q22 individually.
  • Our top 10 customers contributed 59% of our total net revenues in 1Q22, compared to 56% in 4Q21. 
  • Our customers that are integrated device manufacturers or IDMs accounted for 29% of our total net revenues in 1Q22, compared to 31% in 4Q21. 

EMS BASIS

  • Our five largest customers together accounted for approximately 70% of our total net revenues in 1Q22, compared to 77% in 4Q21.  One customer accounted for more than 10% of our total net revenues in 1Q22.
  • Our top 10 customers contributed 79% of our total net revenues in 1Q22, compared to 84% in 4Q21.

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, Vietnam 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 2021 Annual Report on Form 20-F filed on March 29, 2022.

Supplemental Financial Information
(Unaudited)

Consolidated Operations


Legal Entity Basis

Pro forma Basis


1Q22

4Q21

1Q21

4Q21

1Q21

EBITDA (NT$ Millions)

30,661

51,938

24,867

32,624

23,487

ATM Operations


Legal Entity Basis

Pro forma Basis


1Q22

4Q21

1Q21

4Q21

1Q21

Net Revenues (NT$ Millions)

84,025

91,958

73,767

85,180

68,139

Revenue by Application






Communication

52%

50%

50%

53%

53%

Computing

16%

16%

14%

16%

14%

Automotive, Consumer & Others

32%

34%

36%

31%

33%

Revenue by Type






Bumping, Flip Chip, WLP & SiP

43%

38%

34%

40%

37%

Wirebonding

34%

37%

40%

36%

38%

Others

6%

8%

9%

7%

8%

Testing

15%

15%

15%

15%

15%

Material

2%

2%

2%

2%

2%

Capacity & EBITDA






CapEx (US$ Millions)*

414

404

460

368

422

EBITDA (NT$ Millions)

27,116

47,090

22,566

27,776

21,185

Number of Wirebonders

25,858

25,803

27,574

25,803

23,426

Number of Testers

5,012

4,890

5,862

4,890

4,447

EMS Operations


1Q22

4Q21

1Q21

Net Revenues (NT$ Millions)

61,166

81,544

47,693

Revenue by Application




Communication

40%

38%

39%

Computing

10%

8%

7%

Consumer

29%

38%

33%

Industrial

13%

11%

14%

Automotive

6%

4%

5%

Others

2%

1%

2%

Capacity 




CapEx (US$ Millions)*

26

68

11

* Capital expenditure excludes building construction costs.

ASE Technology Holding Co., Ltd.
Summary of Consolidated Statement of Income Data
 (In NT$ millions, except per share data)
(Unaudited)


Legal Entity Basis


Pro Forma Basis


For the three months ended


For the three months ended


Mar. 31

2022


Dec. 31

2021


Mar. 31

2021


Dec. 31

2021


Mar. 31

2021


Net revenues:











Packaging

68,383


75,366


59,033


69,644


54,332


Testing

12,583


13,756


11,130


12,700


10,204


EMS

61,163


81,541


47,684


81,541


47,684


Others

2,262


2,273


1,623


2,273


1,623


Total net revenues

144,391


172,936


119,470


166,158


113,843













Cost of revenues

(115,920)


(140,042)


(97,584)


(134,704)


(92,975)


Gross profit

28,471


32,894


21,886


31,454


20,868













Operating expenses:











Research and development

(5,362)


(5,714)


(4,769)


(5,475)


(4,563)


Selling, general and administrative

(6,996)


(7,565)


(6,209)


(7,203)


(5,900)


Total operating expenses

(12,358)


(13,279)


(10,978)


(12,678)


(10,463)


Operating income

16,113


19,615


10,908


18,776


10,405













Net non-operating (expenses) income:











Interest expense - net

(432)


(553)


(572)


(537)


(552)


Foreign exchange gain (loss)

(1,104)


496


(224)


525


(257)


Gain (loss) on valuation of financial assets and liabilities

1,406


(483)


391


(551)


416


Gain (loss) on equity-method investments

199


192


149


192


149


Others

481


18,069


528


468


464


Total non-operating income (expenses)

550


17,721


272


97


220


Income before tax

16,663


37,336


11,180


18,873


10,625













Income tax expense

(3,278)


(5,592)


(2,451)


(3,586)


(2,392)


Income from continuing operations and before non-controlling interest

13,385


31,744


8,729


15,287


8,233


Non-controlling interest

(478)


(828)


(252)


(828)


(252)













Net income attributable to shareholders of the parent

 

12,907


 

30,916


 

8,477


 

14,459


 

7,981













Per share data:











Earnings (losses) per share











– Basic

NT$3.01


NT$7.20


NT$1.97


NT$3.37


NT$1.85


– Diluted

NT$2.92


NT$6.99


NT$1.92


NT$3.21


NT$1.80













Earnings (losses) per equivalent ADS











– Basic

US$0.216


US$0.518


US$0.139


US$0.242


US$0.131


– Diluted

US$0.210


US$0.504


US$0.135


US$0.231


US$0.127













Number of weighted average shares used in

diluted EPS calculation (in thousands)

4,341,042


4,343,537


4,357,714


4,343,537


4,357,714













FX (NTD/USD)

27.85


27.78


28.30


27.78


28.30


 

ASE Technology Holding Co., Ltd.
Summary of Consolidated Statement of Income Data – ATM
 (In NT$ millions, except per share data)

(Unaudited)


Legal Entity Basis


Pro Forma Basis


For the three months ended


For the three months ended


Mar. 31

2022


Dec. 31

2021


Mar. 31

2021


Dec. 31

2021


Mar. 31

2021


Net revenues:











Packaging

69,921


76,664


61,545


70,942


56,844


Testing

12,583


13,756


11,131


12,700


10,204


Direct Material

1,479


1,502


1,044


1,502


1,044


Others

42


36


47


36


47


Total net revenues

84,025


91,958


73,767


85,180


68,139













Cost of revenues

(60,924)


(66,217)


(55,760)


(60,879)


(51,150)


Gross profit

23,101


25,741


18,007


24,301


16,989













Operating expenses:











Research and development

(4,136)


(4,479)


(3,697)


(4,241)


(3,490)


Selling, general and administrative

(4,953)


(5,206)


(4,392)


(4,844)


(4,084)


Total operating expenses

(9,089)


(9,685)


(8,089)


(9,085)


(7,574)


Operating income

14,012


16,056


9,918


15,216


9,415













 

ASE Technology Holding Co., Ltd.
Summary of Consolidated Statement of Income Data – EMS
 (In NT$ millions, except per share data)

(Unaudited)


 

For the three months ended



Mar. 31

2022


Dec. 31

2021


Mar. 31

2021









Net revenues

61,166


81,544


47,693









Cost of revenues

(55,786)


(74,436)


(43,682)


Gross profit

5,380


7,108


4,011









Operating expenses:







Research and development

(1,249)


(1,256)


(1,097)


Selling, general and administrative

(1,931)


(2,253)


(1,738)


Total operating expenses

(3,180)


(3,509)


(2,835)


Operating income

2,200


3,599


1,176









ASE Technology Holding Co., Ltd.
Summary of Consolidated Balance Sheet Data
(In NT$ millions)

(Unaudited)


As of Mar. 31, 2022


As of Dec. 31, 2021









Current assets:








Cash and cash equivalents



84,426




76,073

Financial assets – current



4,698




3,075

Notes and accounts receivable



106,560




115,462

Inventories



86,201




73,245

Others



25,155




24,503

Total current assets



307,040




292,358









Financial assets – non-current & Investments – equity  method



23,202




23,260

Property, plant and equipment



247,541




239,867

Right-of-use assets



10,915




10,680

Intangible assets



75,236




75,980

Others



32,214




30,789

Total assets



696,148




672,934









Current liabilities:








Short-term borrowings



49,990




41,037

Current portion of bonds payable & Current portion of  long-term borrowings



10,825

 




14,429

 

Notes and accounts payable



83,898




84,470

Others



106,013




70,992

Total current liabilities



250,726




210,928









Bonds payable



40,521




42,365

Long-term borrowings[2]



116,386




121,946

Other liabilities



24,755




23,062

Total liabilities



432,388




398,301









Equity attributable to shareholders of the parent



248,373




260,077

Non-controlling interests



15,387




14,556

Total liabilities & shareholders' equity



696,148




672,934

















Current Ratio



1.22




1.39

Net Debt to Equity Ratio



0.52




0.54

 

     ASE Technology Holding Co., Ltd.
Summary of Consolidated Cash Flow Statements
(In NT$ millions)

(Unaudited)



 

       For the three months ended





Mar. 31


Dec. 31


Mar. 31




2022

2021

2021

Cash Flows from Operating Activities:









Income before tax


16,663


37,336


11,180



Depreciation & amortization


13,503


14,070


13,130



Other operating activities items


(2,986)


(18,488)


(8,559)



Net cash generated from operating activities


27,180


32,918


15,751



Cash Flows from Investing Activities:









     Net payments for property, plant and equipment


(17,182)


(16,513)


(14,053)



Other investment activities items


(753)


21,812


(205)



Net cash generated from (used in) investing activities


(17,935)


5,299


(14,258)



Cash Flows from Financing Activities:









Net proceeds from (repayment of) loans


(5,310)


(5,936)


19,600



Other financing activities items


(269)


(9,868)


1,613



Net cash generated from (used in) financing activities


(5,579)


(15,804)


21,213



Foreign currency exchange effect


4,687


241


(461)



Net increase in cash and cash equivalents


8,353


22,654


22,245



Cash and cash equivalents at the beginning of period


76,073


53,419


51,538



Cash and cash equivalents at the end of period


84,426


76,073


73,783














 

[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 year-end audited consolidated financial statements, and may vary materially from the year-end 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 year-end 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.

[2] Long-term borrowings include long-term loans and bills payable.

 

Investor Relations Contact:

        ir@aseglobal.com
        Tel: +886.2.6636.5678
        http://www.aseglobal.com

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