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

 

July 28, 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: July 28, 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 Its Unaudited Consolidated Financial Results for the Second Quarter of 2022

 

Taipei, Taiwan, R.O.C., July 28, 2022 – 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 revenues1 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

 

l 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.

 

 

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.

 

1  

 

l 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.

 

l Gross margin increased by 1.7 percentage points to 21.4% in 2Q22 from 19.7% in 1Q22.

 

l Operating margin was 12.8% in 2Q22, compared to 11.2% in 1Q22.

 

l 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.

 

l 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.

 

l 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.

 

l 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

 

l 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.

 

l 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.

 

2  

 

 

l Gross margin increased by 1.7 percentage points to 29.2% in 2Q22 from 27.5% in 1Q22.

 

l Operating margin was 18.9% in 2Q22, compared to 16.7% in 1Q22.

 

2Q22 Results Highlights – EMS

 

l Net revenues were NT$66,218 million, up by 8% sequentially.

 

l 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.

 

l Gross margin increased by 1.2 percentage points to 10.0% in 2Q22 from 8.8% in 1Q22.

 

l Operating margin was 4.0% in 2Q22, compared to 3.6% in 1Q22.

 

LIQUIdiTY AND CAPITAL RESOURCES

 

l 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.

 

l Total unused credit lines amounted to NT$312,365 million as of June 30, 2022.

 

l Current ratio was 1.18 and net debt to equity ratio was 0.50 as of June 30, 2022.

 

l 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

 

l 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.

 

l Our top 10 customers contributed 59% of our total net revenues in both 2Q22 and 1Q22.

 

l 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

 

l 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.

 

3  

 

 

l 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.

 

4  

 

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.

 

5  

 

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  

6  

 

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  

7  

 

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

8  

 

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 borrowings2     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

 

 

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

9  

 

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  

10  

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