TAIPEI, Taiwan, R.O.C., Oct. 27, 2022 /PRNewswire/ -- ASE Technology Holding Co., Ltd. (TWSE: 3711, NYSE: ASX) ("We", "ASEH", or the "Company"), the leading provider of semiconductor assembly and testing services (ATM) and the provider of electronic manufacturing services (EMS), today reported its unaudited net revenues[1] of NT$188,626 million for 3Q22, up by 25% year-over-year (or up by 31% year-over-year on pro forma basis) and up by 18% sequentially.  Net income attributable to shareholders of the parent for the quarter totaled NT$17,465 million, up from a net income attributable to shareholders of the parent of NT$14,176 million in 3Q21 (or up from a net income attributable to shareholders of the parent of NT$13,256 million in 3Q21 on pro forma basis) and up from a net income attributable to shareholders of the parent of NT$15,988 million in 2Q22.  Basic earnings per share for the quarter were NT$4.03 (or US$0.268 per ADS), compared to NT$3.29 for 3Q21 (or NT$3.07 for 3Q21 on pro forma basis) and NT$3.69 for 2Q22.  Diluted earnings per share for the quarter were NT$3.92 (or US$0.260 per ADS), compared to NT$3.20 for 3Q21 (or NT$2.99 for 3Q21 on pro forma basis) and NT$3.61 for 2Q22.

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 nine months ended 3Q21.  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

3Q22 Results Highlights – Consolidated

  • Net revenues contribution from packaging operations, testing operations, EMS operations and others, each represented approximately 43%, 8%, 48% and 1%, respectively, of the total net revenues of the quarter.
  • Cost of revenues was NT$150,654 million for the quarter, up from NT$126,051 million in 2Q22.
    • Raw material cost totaled NT$102,158 million for the quarter, representing 54% of the total net revenues.
    • Labor cost totaled NT$17,292 million for the quarter, representing 9% of the total net revenues.
    • Depreciation, amortization and rental expenses totaled NT$12,811 million for the quarter.
  • Gross margin decreased by 1.3 percentage points to 20.1% in 3Q22 from 21.4% in 2Q22.
  • Operating margin was 12.6% in 3Q22, compared to 12.8% in 2Q22.
  • In terms of non-operating items:
    • Net interest expense was NT$966 million.
    • Net foreign exchange loss of NT$2,818 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$2,878 million.
    • Net gain on equity-method investments was NT$358 million.
    • Other net non-operating income of NT$480 million was primarily attributable to miscellaneous income.  Total non-operating expense for the quarter was NT$68 million.
  • Income before tax was NT$23,615 million for 3Q22, compared to NT$21,136 million in 2Q22.  We recorded income tax expenses of NT$5,046 million for the quarter, compared to NT$4,479 million in 2Q22.
  • In 3Q22, net income attributable to shareholders of the parent was NT$17,465 million, compared to NT$14,176 million in 3Q21 and NT$15,988 million in 2Q22.
  • Our total number of shares outstanding at the end of the quarter was 4,364,218,532, including treasury stock owned by our subsidiaries in 3Q22.  Our 3Q22 basic earnings per share of NT$4.03 (or US$0.268 per ADS) were based on 4,330,471,737 weighted average numbers of shares outstanding in 3Q22.  Our 3Q22 diluted earnings per share of NT$3.92 (or US$0.260 per ADS) were based on 4,373,878,048 weighted average number of shares outstanding in 3Q22.

3Q22 Results Highlights – ATM

  • Net revenues were NT$98,831 million, up by 10% year-over-year (or up by 19% year-over-year on pro forma basis) and up by 4% sequentially.
  • Cost of revenues was NT$69,999 million for the quarter, up by 4% sequentially.
    • Raw material cost totaled NT$28,072 million for the quarter, representing 28% of the total net revenues.
    • Labor cost totaled NT$14,383 million for the quarter, representing 15% of the total net revenues.
    • Depreciation, amortization and rental expenses totaled NT$11,574 million for the quarter.
  • Gross margin stayed flat, which was 29.2% in both 3Q22 and 2Q22.
  • Operating margin was 18.9% in both 3Q22 and 2Q22.

3Q22 Results Highlights – EMS

  • Net revenues were NT$90,665 million, up by 37% sequentially.
  • Cost of revenues for the quarter was NT$81,467 million, up by 37% sequentially.
    • Raw material cost totaled NT$73,999 million for the quarter, representing 82% of the total net revenues.
    • Labor cost totaled NT$2,799 million for the quarter, representing 3% of the total net revenues.
    • Depreciation, amortization and rental expenses totaled NT$967 million for the quarter.
  • Gross margin increased by 0.1 percentage points to 10.1% in 3Q22 from 10.0% in 2Q22.
  • Operating margin was 5.7% in 3Q22, compared to 4.0% in 2Q22.

LIQUIDITY AND CAPITAL RESOURCES

  • Capital expenditures in 3Q22 totaled US$400 million, of which US$197 million were used in packaging operations, US$134 million in testing operations, US$50 million in EMS operations and US$19 million in interconnect materials operations and others.
  • Total unused credit lines amounted to NT$296,099 million as of September 30, 2022.
  • Current ratio was 1.22 and net debt to equity ratio was 0.53 as of September 30, 2022.
  • Total number of employees was 99,104 as of September 30, 2022, compared to 97,800 as of June 30, 2022.

Business Review

Customers

ATM Basis

  • Our five largest customers together accounted for approximately 45% of our total net revenues in 3Q22, compared to 46% in 2Q22.  Two customers each accounted for more than 10% of our total net revenues in 3Q22 individually.
  • Our top 10 customers contributed 59% of our total net revenues in both 3Q22 and 2Q22. 
  • Our customers that are integrated device manufacturers or IDMs accounted for 33% of our total net revenues in 3Q22, compared to 30% in 2Q22. 

EMS Basis

  • Our five largest customers together accounted for approximately 74% of our total net revenues in 3Q22, compared to 66% in 2Q22.  One customer accounted for more than 10% of our total net revenues in 3Q22.
  • Our top 10 customers contributed 81% of our total net revenues in 3Q22, compared to 75% in 2Q22.

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.

Investor Relations Contact:

ir@aseglobal.com

Tel: +886.2.6636.5678

http://www.aseglobal.com

 

Supplemental Financial Information

(Unaudited)

Consolidated Operations


Pro Forma Basis


3Q22

2Q22

3Q21

3Q21 

EBITDA (NT$ million)

38,601

35,211

32,655

30,806

ATM Operations


Pro Forma Basis


3Q22

2Q22

3Q21

3Q21 

Net Revenues (NT$ million)

98,831

94,998

90,092

83,321

Revenue by Application





Communication

53 %

52 %

51 %

53 %

Computing

16 %

16 %

15 %

15 %

Automotive, Consumer & Others

31 %

32 %

34 %

32 %

Revenue by Type





Bumping, Flip Chip, WLP & SiP

42 %

43 %

36 %

39 %

Wirebonding

34 %

35 %

39 %

37 %

Others

7 %

6 %

8 %

7 %

Testing

15 %

15 %

15 %

15 %

Material

2 %

1 %

2 %

2 %

Capacity & EBITDA





CapEx (US$ million)*

348

461

407

364

EBITDA (NT$ million)

31,657

30,940

28,588

26,739

Number of Wirebonders

25,887

25,876

29,943

25,723

Number of Testers

5,406

5,194

6,149

4,652

EMS Operations


3Q22

2Q22

3Q21

Net Revenues (NT$ million)

90,665

66,218

61,127

Revenue by Application




Communication

37 %

35 %

38 %

Computing

9 %

13 %

10 %

Consumer

36 %

28 %

33 %

Industrial

11 %

15 %

12 %

Automotive

6 %

8 %

5 %

Others

1 %

1 %

2 %

Capacity 




CapEx (US$ million)*

50

53

60

*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 nine months ended




Pro Forma Basis




Pro Forma Basis



Sep. 30

2022


Jun. 30

2022


Sep. 30

2021


Sep. 30

2021


Sep. 30

2022


Sep. 30

2021


Sep. 30

2021


Net revenues















Packaging

80,541


78,394


73,996


68,287


227,318


197,178


181,548


Testing

14,942


13,760


13,416


12,353


41,285


36,222


33,212


EMS

90,660


66,213


61,116


61,116


218,036


157,947


157,947


Others

2,483


2,072


2,137


2,137


6,817


5,714


5,714


Total net revenues

188,626


160,439


150,665


143,893


493,456


397,061


378,421

















Cost of revenues

(150,654)


(126,051)


(119,881)


(114,642)


(392,625)


(319,586)


(304,832)


Gross profit

37,972


34,388


30,784


29,251


100,831


77,475


73,589

















Operating expenses















Research and development

(6,262)


(5,795)


(5,495)


(5,272)


(17,419)


(15,340)


(14,699)


Selling, general and administrative

(8,027)


(7,987)


(6,863)


(6,516)


(23,010)


(19,626)


(18,628)


Total operating expenses

(14,289)


(13,782)


(12,358)


(11,788)


(40,429)


(34,966)


(33,327)


Operating income

23,683


20,606


18,426


17,463


60,402


42,509


40,262

















Net non-operating income and expenses















Interest expense - net

(966)


(702)


(562)


(556)


(2,240)


(1,703)


(1,672)


Foreign exchange gain (loss)

(2,818)


(1,301)


66


55


(5,223)


899


871


Gain (loss) on valuation of financial assets and liabilities

2,878


1,543


(349)


(359)


5,827


(1,008)


(1,057)


Gain on equity-method investments

358


486


414


414


1,043


782


782


Others

480


504


479


412


1,605


1,520


1,308


Total non-operating income  and expenses

(68)


530


48


(34)


1,012


490


232


Income before tax

23,615


21,136


18,474


17,429


61,414


42,999


40,494

















Income tax expense

(5,046)


(4,479)


(3,630)


(3,505)


(12,803)


(8,729)


(8,440)


Income from operations and before non-controlling interests

18,569


16,657


14,844


13,924


48,611


34,270


32,054


Non-controlling interests

(1,104)


(669)


(668)


(668)


(2,251)


(1,278)


(1,278)

















Net income attributable to

shareholders of the parent

17,465


15,988


14,176


13,256


46,360


32,992


30,776

















Per share data:















Earnings per share















– Basic

NT$4.03


NT$3.69


NT$3.29


NT$3.07


NT$10.74


NT$7.66


NT$7.14


– Diluted

NT$3.92


NT$3.61


NT$3.20


NT$2.99


NT$10.34


NT$7.43


NT$6.92

















Earnings per equivalent ADS















– Basic

US$0.268


US$0.253


US$0.236


US$0.221


US$0.739


US$0.546


US$0.509


– Diluted

US$0.260


US$0.247


US$0.230


US$0.215


US$0.711


US$0.530


US$0.494

















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

4,373,878


4,375,107


4,370,715


4,370,715


4,368,634


4,370,312


4,370,312

















FX (NTD/USD)

30.10


29.26


27.79


27.79


29.07


28.04


28.04


 

ASE Technology Holding Co., Ltd.

Summary of ATM Statement of Income Data

 (In NT$ millions)

(Unaudited)


For the three months ended


For the nine months ended




Pro Forma Basis




Pro Forma Basis



Sep. 30

2022


Jun. 30

2022


Sep. 30

2021


Sep. 30

2021


Sep. 30

2022


Sep. 30

2021


Sep. 30

2021


Net revenues















Packaging

82,090


79,894


75,221


69,512


231,905


202,702


187,072


Testing

14,941


13,760


13,416


12,354


41,284


36,224


33,214


Direct Material

1,765


1,288


1,429


1,429


4,532


3,845


3,845


Others

35


56


26


26


133


76


76


Total net revenues

98,831


94,998


90,092


83,321


277,854


242,847


224,207

















Cost of revenues

(69,999)


(67,230)


(65,378)


(60,140)


(198,154)


(179,916)


(165,162)


Gross profit

28,832


27,768


24,714


23,181


79,700


62,931


59,045

















Operating expenses















Research and development

(4,901)


(4,455)


(4,254)


(4,032)


(13,491)


(11,780)


(11,138)


Selling, general and administrative

(5,268)


(5,318)


(4,829)


(4,482)


(15,540)


(13,775)


(12,777)


Total operating expenses

(10,169)


(9,773)


(9,083)


(8,514)


(29,031)


(25,555)


(23,915)


Operating income

18,663


17,995


15,631


14,667


50,669


37,376


35,130

















 

ASE Technology Holding Co., Ltd.

Summary of EMS Statement of Income Data

 (In NT$ millions)

(Unaudited)


For the three months ended


For the nine months ended


Sep. 30

2022


Jun. 30

2022


Sep. 30

2021


Sep. 30

2022


Sep. 30

2021













Net revenues

90,665


66,218


61,127


218,049


157,974













Cost of revenues

(81,467)


(59,568)


(55,244)


(196,821)


(143,604)


Gross profit

9,198


6,650


5,883


21,228


14,370













Operating expenses











Research and development

(1,392)


(1,380)


(1,270)


(4,021)


(3,641)


Selling, general and administrative

(2,676)


(2,603)


(1,955)


(7,210)


(5,622)


Total operating expenses

(4,068)


(3,983)


(3,225)


(11,231)


(9,263)


Operating income

5,130


2,667


2,658


9,997


5,107













 

ASE Technology Holding Co., Ltd.

Summary of Consolidated Balance Sheet Data

(In NT$ millions)

(Unaudited)




As of Sep. 30, 2022



As of Jun. 30, 2022

Current assets







Cash and cash equivalents



52,358



72,846

Financial assets – current



9,667



6,136

Notes and accounts receivable



140,178



116,617

Inventories



101,287



94,661

Others



29,239



28,503

Total current assets



332,729



318,763








Financial assets – non-current & Investments – equity  method



22,926



22,356

Property, plant and equipment



264,508



254,784

Right-of-use assets



11,822



10,853

Intangible assets



73,590



74,300

Others



32,254



32,023

Total assets



737,829



713,079








Current liabilities







Short-term borrowings



78,056



60,722

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



8,157



11,835

Notes and accounts payable



104,286



86,534

Others



83,248



111,136

Total current liabilities



273,747



270,227








Bonds payable



40,534



40,923

Long-term borrowings[2]



89,273



97,367

Other liabilities



28,625



26,251

Total liabilities



432,179



434,768








Equity attributable to shareholders of the parent



288,361



263,039

Non-controlling interests



17,289



15,272

Total liabilities & shareholders' equity



737,829



713,079















Current Ratio



1.22



1.18

Net Debt to Equity Ratio



0.53



0.50

 

ASE Technology Holding Co., Ltd.

Summary of Consolidated Statement of Cash Flow Data

(In NT$ millions)

(Unaudited)



        For the three months ended


For the nine months ended




Sep. 30


Jun. 30


Sep. 30


Sep. 30


Sep. 30



2022

2022

2021

2022

2021

Cash Flows from Operating Activities












Profit before income tax


23,615


21,136


18,474


61,414


42,999


Depreciation & amortization


13,947


13,749


13,864


41,199


40,454


Other operating activities items


(18,944)


(19,858)


(17,505)


(41,788)


(34,638)


Net cash generated from operating activities


18,618


15,027


14,833


60,825


48,815


Cash Flows from Investing Activities












Net payments for property, plant

and equipment


(17,219)


(17,292)


(20,294)


(51,693)


(52,787)


Other investment activities items


288


(245)


(139)


(710)


(1,603)


Net cash used in investing activities


(16,931)


(17,537)


(20,433)


(52,403)


(54,390)


Cash Flows from Financing Activities












Total net proceeds from (repayment of) borrowings and bonds


1,111


(8,980)


25,319


(13,179)


28,279


Dividends paid


(29,991)


-


(18,083)


(29,991)


(18,083)


Other financing activities items


(228)


(893)


(854)


(1,390)


(263)


Net cash generated from (used in) financing activities


(29,108)


(9,873)


6,382


(44,560)


9,933


Foreign currency exchange effect


6,933


803


(350)


12,423


(2,477)


Net increase (decrease) in cash

and cash equivalents


(20,488)


(11,580)


432


(23,715)


1,881


Cash and cash equivalents at the beginning of period


72,846


84,426


52,987


76,073


51,538


Cash and cash equivalents at the 

end of period


52,358


72,846


53,419


52,358


53,419






















[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.

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SOURCE ASE Technology Holding Co., Ltd.

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