TAIPEI, Taiwan, R.O.C., July 28, 2022 /PRNewswire/ -- ASE Technology Holding Co., Ltd. (TAIEX: 3711, NYSE: ASX) ("We", "ASEH", or the "Company"), the leading provider of semiconductor assembly and testing services (ATM) and electronic manufacturing services (EMS), today reported its unaudited net revenues[1] of NT$160,439 million for 2Q22, up by 26% year-over-year (or up by 33% year-over-year on pro forma basis) and up by 11% sequentially.  Net income attributable to shareholders of the parent for the quarter totaled NT$15,988 million, up from a net income attributable to shareholders of the parent of NT$10,338 million in 2Q21 (or up from a net income attributable to shareholders of the parent of NT$9,539 million in 2Q21 on pro forma basis) and up from a net income attributable to shareholders of the parent of NT$12,907 million in 1Q22.  Basic earnings per share for the quarter were NT$3.69 (or US$0.253 per ADS), compared to NT$2.40 for 2Q21 (or NT$2.21 for 2Q21 on pro forma basis) and NT$3.01 for 1Q22.  Diluted earnings per share for the quarter were NT$3.61 (or US$0.247 per ADS), compared to NT$2.30 for 2Q21 (or NT$2.12 for 2Q21 on pro forma basis) and NT$2.92 for 1Q22.

We are providing you with the unaudited pro forma financial information to assist 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 historical financial statements of our China sites, given effect to the disposal as if it had occurred for the preceding three months and six months ended 2Q21.  For more details on our operations, please refer to "Supplemental Financial Information", "Summary of Consolidated Statement of Income Data", and "Summary of ATM Statement of Income Data."

RESULTS OF OPERATIONS

2Q22 Results Highlights – Consolidated

  • Net revenues contribution from packaging operations, testing operations, EMS operations and others, each represented approximately 49%, 9%, 41% and 1%, respectively, of the total net revenues of the quarter.
  • Cost of revenues was NT$126,051 million for the quarter, up from NT$115,920 million in 1Q22.
    - Raw material cost totaled NT$79,348 million for the quarter, representing 50% of the total net revenues.
    - Labor cost totaled NT$17,637 million for the quarter, representing 11% of the total net revenues.
    - Depreciation, amortization and rental expenses totaled NT$12,603 million for the quarter.
  • Gross margin increased by 1.7 percentage points to 21.4% in 2Q22 from 19.7% in 1Q22.
  • Operating margin was 12.8% in 2Q22, compared to 11.2% in 1Q22.
  • In terms of non-operating items:
    - Net interest expense was NT$702 million.
    - Net foreign exchange loss of NT$1,301 million was primarily attributable to the appreciation of U.S. dollar against New Taiwan dollar.
    - Net gain on valuation of financial assets and liabilities was NT$1,543 million.
    - Net gain on equity-method investments was NT$486 million.
    - Other net non-operating income of NT$504 million was primarily attributable to miscellaneous income.  Total non-operating income for the quarter was NT$530 million.
  • Income before tax was NT$21,136 million for 2Q22, compared to NT$16,663 million in 1Q22.  We recorded income tax expenses of NT$4,479 million for the quarter, compared to NT$3,278 million in 1Q22.
  • In 2Q22, net income attributable to shareholders of the parent was NT$15,988 million, compared to NT$10,338 million in 2Q21 and NT$12,907 million in 1Q22.
  • Our total number of shares outstanding at the end of the quarter was 4,359,927,932, including treasury stock owned by our subsidiaries in 2Q22.  Our 2Q22 basic earnings per share of NT$3.69 (or US$0.253 per ADS) were based on 4,326,986,427 weighted average numbers of shares outstanding in 2Q22.  Our 2Q22 diluted earnings per share of NT$3.61 (or US$0.247 per ADS) were based on 4,375,107,331 weighted average number of shares outstanding in 2Q22.

2Q22 Results Highlights – ATM

  • Net revenues were NT$94,998 million, up by 20% year-over-year (or up by 31% year-over-year on pro forma basis) and up by 13% sequentially.
  • Cost of revenues was NT$67,230 million for the quarter, up by 10% sequentially.
    - Raw material cost totaled NT$26,615 million for the quarter, representing 28% of the total net revenues.
    - Labor cost totaled NT$14,575 million for the quarter, representing 15% of the total net revenues.
    - Depreciation, amortization and rental expenses totaled NT$11,383 million for the quarter.
  • Gross margin increased by 1.7 percentage points to 29.2% in 2Q22 from 27.5% in 1Q22.
  • Operating margin was 18.9% in 2Q22, compared to 16.7% in 1Q22.

2Q22 Results Highlights – EMS

  • Net revenues were NT$66,218 million, up by 8% sequentially.
  • Cost of revenues for the quarter was NT$59,568 million, up by 7% sequentially.
    - Raw material cost totaled NT$52,633 million for the quarter, representing 80% of the total net revenues.
    - Labor cost totaled NT$2,953 million for the quarter, representing 4% of the total net revenues.
    - Depreciation, amortization and rental expenses totaled NT$948 million for the quarter.
  • Gross margin increased by 1.2 percentage points to 10.0% in 2Q22 from 8.8% in 1Q22.
  • Operating margin was 4.0% in 2Q22, compared to 3.6% in 1Q22.

LIQUIDITY AND CAPITAL RESOURCES

  • Capital expenditures in 2Q22 totaled US$515 million, of which US$290 million were used in packaging operations, US$161 million in testing operations, US$53 million in EMS operations and US$11 million in interconnect materials operations and others.
  • Total unused credit lines amounted to NT$312,365 million as of June 30, 2022.
  • Current ratio was 1.18 and net debt to equity ratio was 0.50 as of June 30, 2022.
  • Total number of employees was 97,800 as of June 30, 2022, compared to 94,879 as of March 31, 2022.

BUSINESS REVIEW

Customers
ATM Basis

  • Our five largest customers together accounted for approximately 46% of our total net revenues in 2Q22, compared to 47% in 1Q22.  Two customers each accounted for more than 10% of our total net revenues in 2Q22 individually.
  • Our top 10 customers contributed 59% of our total net revenues in both 2Q22 and 1Q22.
  • Our customers that are integrated device manufacturers or IDMs accounted for 30% of our total net revenues in 2Q22, compared to 29% in 1Q22. 

EMS BASIS

  • Our five largest customers together accounted for approximately 66% of our total net revenues in 2Q22, compared to 70% in 1Q22.  One customer accounted for more than 10% of our total net revenues in 2Q22.
  • Our top 10 customers contributed 75% of our total net revenues in 2Q22, compared to 79% in 1Q22.

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 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, Mexico, and Tunisia 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


Pro Forma Basis


2Q22

1Q22

2Q21

2Q21

EBITDA (NT$ Millions)

35,211

30,661

27,350

25,663

 

ATM Operations


Pro Forma Basis


2Q22

1Q22

2Q21

2Q21 

Net Revenues (NT$ Millions)

94,998

84,025

78,988

72,747

Revenue by Application





Communication

52 %

52 %

50 %

52 %

Computing

16 %

16 %

14 %

15 %

Automotive, Consumer & Others

32 %

32 %

36 %

33 %

Revenue by Type





Bumping, Flip Chip, WLP & SiP

43 %

43 %

33 %

36 %

Wirebonding

35 %

34 %

42 %

40 %

Others

6 %

6 %

8 %

7 %

Testing

15 %

15 %

15 %

15 %

Material

1 %

2 %

2 %

2 %

Capacity & EBITDA





CapEx (US$ Millions)*

461

414

570

526

EBITDA (NT$ Millions)

30,940

27,116

24,671

22,984

Number of Wirebonders

25,876

25,858

29,056

24,839

Number of Testers

5,194

5,012

6,001

4,525

 

EMS Operations


2Q22

1Q22

2Q21

Net Revenues (NT$ Millions)

66,218

61,166

49,154

Revenue by Application




Communication

35 %

40 %

39 %

Computing

13 %

10 %

10 %

Consumer

28 %

29 %

28 %

Industrial

15 %

13 %

16 %

Automotive

8 %

6 %

5 %

Others

1 %

2 %

2 %

Capacity 




CapEx (US$ Millions)*

53

26

39

* 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)


For the three months ended


For the six months ended




Pro Forma Basis




Pro Forma Basis



Jun. 30

2022


Mar. 31

2022


Jun. 30

2021


Jun. 30

2021


Jun. 30

2022


Jun. 30

2021


Jun. 30

2021


Net revenues:















Packaging

78,394


68,383


64,149


58,929


146,777


123,182


113,261


Testing

13,760


12,583


11,676


10,655


26,343


22,806


20,859


EMS

66,213


61,163


49,147


49,147


127,376


96,831


96,831


Others

2,072


2,262


1,954


1,954


4,334


3,577


3,577


Total net revenues

160,439


144,391


126,926


120,685


304,830


246,396


234,528

















Cost of revenues

(126,051)


(115,920)


(102,122)


(97,215)


(241,971)


(199,706)


(190,190)


Gross profit

34,388


28,471


24,804


23,470


62,859


46,690


44,338

















Operating expenses:















Research and development

(5,795)


(5,362)


(5,076)


(4,864)


(11,157)


(9,845)


(9,427)


Selling, general and administrative

 

(7,987)


 

(6,996)


 

(6,554)


 

(6,212)


 

(14,983)


 

(12,763)


 

(12,112)


Total operating expenses

(13,782)


(12,358)


(11,630)


(11,076)


(26,140)


(22,608)


(21,539)


Operating income

20,606


16,113


13,174


12,394


36,719


24,082


22,799

















Net non-operating income and expenses:















Interest expense - net

(702)


(572)


(569)


(563)


(1,274)


(1,141)


(1,115)


Foreign exchange gain (loss)

(1,301)


(1,104)


1,057


1,072


(2,405)


833


815


Gain (loss) on valuation of financial assets and liabilities

 

1,543


 

1,406


 

(1,050)


 

(1,114)


 

2,949


 

(659)


 

(698)


Gain on equity-method investments

 

486


 

199


 

219


 

219


 

685


 

368


 

368


Others

504


621


513


432


1,125


1,041


896


Total non-operating income  and expenses

530


550


170


46


1,080


442


266


Income before tax

21,136


16,663


13,344


12,440


37,799


24,524


23,065

















Income tax expense

(4,479)


(3,278)


(2,648)


(2,543)


(7,757)


(5,099)


(4,935)


Income from continuing operations and before non-controlling interest

16,657


13,385


10,696


9,897


30,042


19,425


18,130


Non-controlling interest

(669)


(478)


(358)


(358)


(1,147)


(610)


(610)

















Net income attributable to

shareholders of the parent

 

15,988


 

12,907


 

10,338


 

9,539


 

28,895


 

18,815


 

17,520

















Per share data:















Earnings per share















– Basic

NT$3.69


NT$3.01


NT$2.40


NT$2.21


NT$6.71


NT$4.37


NT$4.07


– Diluted

NT$3.61


NT$2.92


NT$2.30


NT$2.12


NT$6.51


NT$4.25


NT$3.95

















Earnings per equivalent ADS















– Basic

US$0.253


US$0.216


US$0.171


US$0.158


US$0.470


US$0.310


US$0.289


– Diluted

US$0.247


US$0.210


US$0.164


US$0.151


US$0.456


US$0.302


US$0.280

















Number of weighted average shares used in diluted EPS calculation (in thousands)

 

 

4,375,107


 

 

4,341,042


 

 

4,362,634


 

 

4,362,634


 

 

4,359,944


 

 

4,363,749


 

 

4,363,749

















FX (NTD/USD)

29.26


27.85


28.03


28.03


28.56


28.17


28.17


 

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

 


For the three months ended


For the six months ended




Pro Forma Basis




Pro Forma Basis



Jun. 30

2022


Mar. 31

2022


Jun. 30

2021


Jun. 30

2021


Jun. 30

2022


Jun. 30

2021


Jun. 30

2021


Net revenues:















Packaging

79,894


69,921


65,936


60,716


149,815


127,481


117,560


Testing

13,760


12,583


11,677


10,656


26,343


22,808


20,860


Direct Material

1,288


1,479


1,372


1,372


2,767


2,416


2,416


Others

56


42


3


3


98


50


50


Total net revenues

94,998


84,025


78,988


72,747


179,023


152,755


140,886

















Cost of revenues

(67,230)


(60,924)


(58,778)


(53,871)


(128,154)


(114,538)


(105,021)


Gross profit

27,768


23,101


20,210


18,876


50,869


38,217


35,865

















Operating expenses:















Research and development

(4,455)


(4,136)


(3,829)


(3,616)


(8,591)


(7,526)


(7,106)


Selling, general and administrative

 

(5,318)


 

(4,953)


 

(4,554)


 

(4,212)


 

(10,271)


 

(8,946)


 

(8,296)


Total operating expenses

(9,773)


(9,089)


(8,383)


(7,828)


(18,862)


(16,472)


(15,402)


Operating income

17,995


14,012


11,827


11,048


32,007


21,745


20,463

















 

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

 


For the three months ended


For the six months ended


Jun. 30

2022


Mar. 31

2022


Jun. 30

2021


Jun. 30

2022


Jun. 30

2021


Net revenues:











Total net revenues

66,218


61,166


49,154


127,384


96,847













Cost of revenues

(59,568)


(55,786)


(44,678)


(115,354)


(88,360)


Gross profit

6,650


5,380


4,476


12,030


8,487













Operating expenses:











Research and development

(1,380)


(1,249)


(1,274)


(2,629)


(2,371)


Selling, general and administrative

(2,603)


(1,931)


(1,929)


(4,534)


(3,667)


Total operating expenses

(3,983)


(3,180)


(3,203)


(7,163)


(6,038)


Operating income

2,667


2,200


1,273


4,867


2,449













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


As of Jun. 30, 2022


As of Mar. 31, 2022









Current assets:








Cash and cash equivalents



72,846




84,426

Financial assets – current



6,136




4,698

Notes and accounts receivable



116,617




106,560

Inventories



94,661




86,201

Others



28,503




25,155

Total current assets



318,763




307,040









Financial assets – non-current & Investments – equity  method



22,356




23,202

Property, plant and equipment



254,784




247,541

Right-of-use assets



10,853




10,915

Intangible assets



74,300




75,236

Others



32,023




32,214

Total assets



713,079




696,148









Current liabilities:








Short-term borrowings



60,722




49,990

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



11,835

 




10,825

 

Notes and accounts payable



86,534




83,898

Others



111,136




106,013

Total current liabilities



270,227




250,726









Bonds payable



40,923




40,521

Long-term borrowings[2]



97,367




116,386

Other liabilities



26,251




24,755

Total liabilities



434,768




432,388









Equity attributable to shareholders of the parent



263,039




248,373

Non-controlling interests



15,272




15,387

Total liabilities & shareholders' equity



713,079




696,148

















Current Ratio



1.18




1.22

Net Debt to Equity Ratio



0.50




0.52

 

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



For the three months ended


For the six months ended



Jun. 30


Mar. 31


Jun. 30


Jun. 30


Jun. 30



2022

2022

2021

2022

2021

Cash Flows from Operating Activities:












Profit before income tax


21,136


16,663


13,344


37,799


24,524


Depreciation & amortization


13,749


13,503


13,460


27,252


26,590


Other operating activities items


(19,858)


(2,986)


(8,573)


(22,844)


(17,132)


Net cash generated from operating activities


15,027


27,180


18,231


42,207


33,982


Cash Flows from Investing Activities:












Net payments for property, plant and equipment


(17,292)


(17,182)


(18,440)


(34,474)


(32,493)


Other investment activities items


(245)


(753)


(1,259)


(998)


(1,464)


Net cash used in investing activities


(17,537)


(17,935)


(19,699)


(35,472)


(33,957)


Cash Flows from Financing Activities:












Total net proceeds from (repayment of) borrowings


(8,980)


(5,310)


(16,640)


(14,290)


2,960


Other financing activities items


(893)


(269)


(1,022)


(1,162)


591


Net cash generated from (used in) financing activities


(9,873)


(5,579)


(17,662)


(15,452)


3,551


Foreign currency exchange effect


803


4,687


(1,666)


5,490


(2,127)


Net increase (decrease) in cash and cash equivalents


(11,580)


8,353


(20,796)


(3,227)


1,449


Cash and cash equivalents at the beginning of period


84,426


76,073


73,783


76,073


51,538


Cash and cash equivalents at the end of period


72,846


84,426


52,987


72,846


52,987


 

[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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