TAIPEI, Oct. 26, 2023 /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$154,167 million for 3Q23, down by 18% year-over-year and up by 13% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$8,776 million, down from NT$17,465 million in 3Q22 and up from NT$7,740 million in 2Q23.  Basic earnings per share for the quarter were NT$2.04 (or US$0.130 per ADS), compared to NT$4.03 for 3Q22 and NT$1.80 for 2Q23.  Diluted earnings per share for the quarter were NT$2.00 (or US$0.127 per ADS), compared to NT$3.92 for 3Q22 and NT$1.76 for 2Q23.

RESULTS OF OPERATIONS

3Q23 Results Highlights – Consolidated

  • Net revenues from packaging operations, testing operations, EMS operations, and others represented approximately 45%, 8%, 46%, and 1% of the total net revenues for the quarter, respectively.
  • Cost of revenues was NT$129,251 million for the quarter, up from NT$114,534 million in 2Q23.
    • Raw material cost totaled NT$82,961 million for the quarter, representing 54% of the total net revenues.
    • Labor cost totaled NT$15,448 million for the quarter, representing 10% of the total net revenues.
    • Depreciation, amortization and rental expenses totaled NT$13,104 million for the quarter.
  • Gross margin increased by 0.2 percentage points to 16.2% in 3Q23 from 16.0% in 2Q23.
  • Operating margin was 7.4% in 3Q23, compared to 6.9% in 2Q23.
  • In terms of non-operating items:
    • Net interest expense was NT$1,247 million.
    • Net foreign exchange loss was NT$2,090 million, primarily attributable to the appreciation of the U.S. dollar against the New Taiwan dollar.
    • Net gain on valuation of financial assets and liabilities was NT$2,820 million.
    • Net gain on equity-method investments was NT$656 million.
    • Other net non-operating income was NT$708 million, primarily attributable to miscellaneous income. Total non-operating income for the quarter was NT$847 million.
  • Income before tax was NT$12,252 million in 3Q23, compared to NT$10,111 million in 2Q23. We recorded income tax expenses of NT$2,890 million for the quarter, compared to NT$1,914 million in 2Q23.
  • Net income attributable to shareholders of the parent was NT$8,776 million in 3Q23, compared to NT$17,465 million in 3Q22 and NT$7,740 million in 2Q23.
  • Our total number of shares outstanding at the end of the quarter was 4,380,199,187, including treasury stock owned by our subsidiaries in 3Q23. Our 3Q23 basic earnings per share of NT$2.04 (or US$0.130 per ADS) were based on 4,296,577,819 weighted average numbers of shares outstanding in 3Q23.  Our 3Q23 diluted earnings per share of NT$2.00 (or US$0.127 per ADS) were based on 4,347,752,000 weighted average number of shares outstanding in 3Q23.

3Q23 Results Highlights – ATM

  • Net revenues were NT$83,684 million for the quarter, down by 15% year-over-year and up by 10% sequentially.
  • Cost of revenues was NT$65,094 million for the quarter, down by 7% year-over-year and up by 9% sequentially.
    • Raw material cost totaled NT$25,373 million for the quarter, representing 30% of the total net revenues.
    • Labor cost totaled NT$12,463 million for the quarter, representing 15% of the total net revenues.
    • Depreciation, amortization and rental expenses totaled NT$11,752 million for the quarter.
  • Gross margin increased by 1.0 percentage points to 22.2% in 3Q23 from 21.2% in 2Q23.
  • Operating margin was 10.5% in 3Q23, compared to 9.7% in 2Q23.

3Q23 Results Highlights – EMS

  • Net revenues were NT$70,970 million, down by 22% year-over-year and up by 18% sequentially.
  • Cost of revenues for the quarter was NT$64,500 million, down by 21% year-over-year and up by 18% sequentially.
    • Raw material cost totaled NT$57,545 million for the quarter, representing 81% of the total net revenues.
    • Labor cost totaled NT$2,870 million for the quarter, representing 4% of the total net revenues.
    • Depreciation, amortization and rental expenses totaled NT$1,093 million for the quarter.
  • Gross margin decreased by 0.2 percentage points to 9.1% in 3Q23 from 9.3% in 2Q23.
  • Operating margin was 3.9% in 3Q23, compared to 3.5% in 2Q23.

LIQUIDITY AND CAPITAL RESOURCES

  • Capital expenditures in 3Q23 totaled US$239 million, of which US$121 million was used in packaging operations, US$89 million in testing operations, US$28 million in EMS operations and US$1 million in interconnect materials operations and others.
  • Total unused credit lines amounted to NT$347,011 million as of September 30, 2023.
  • Current ratio was 1.21 and net debt to equity ratio was 0.47 as of September 30, 2023.
  • Total number of employees was 93,289 as of September 30, 2023, compared to 93,950 as of June 30, 2023.

BUSINESS REVIEW

Customers
ATM BASIS

  • Our five largest customers together accounted for approximately 42% of our total net revenues in 3Q23, compared to 41% in 2Q23.  One customer accounted for more than 10% of our total net revenues in 3Q23.
  • Our top 10 customers contributed 57% of our total net revenues in both 3Q23 and 2Q23.
  • Our customers that are integrated device manufacturers or IDMs accounted for 31% of our total net revenues in 3Q23, compared to 33% in 2Q23. 

EMS BASIS

  • Our five largest customers together accounted for approximately 70% of our total net revenues in 3Q23, compared to 68% in 2Q23. One customer accounted for more than 10% of our total net revenues in 3Q23.
  • Our top 10 customers contributed 78% of our total net revenues in 3Q23, compared to 75% in 2Q23.

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 2022 Annual Report on Form 20-F filed on April 10, 2023.

Supplemental Financial Information
(Unaudited)

Consolidated Operations


3Q23

2Q23

3Q22

EBITDA (NT$ million)

27,822

25,770

38,601

ATM Operations


3Q23

2Q23

3Q22

Net Revenues (NT$ million)

83,684

76,108

98,831

Revenues by Application




Communication

52 %

49 %

53 %

Computing

19 %

18 %

16 %

Automotive, Consumer & Others

29 %

33 %

31 %

Revenues by Type




Bumping, Flip Chip, WLP & SiP

44 %

41 %

42 %

Wirebonding

32 %

34 %

34 %

Others

8 %

7 %

7 %

Testing

15 %

16 %

15 %

Material

1 %

2 %

2 %

Capacity & EBITDA




CapEx (US$ million)*

210

176

348

EBITDA (NT$ million)

23,117

21,643

31,657

Number of Wirebonders

26,215

25,880

25,887

Number of Testers

5,510

5,495

5,406

EMS Operations


3Q23

2Q23

3Q22

Net Revenues (NT$ million)

70,970

60,424

90,665

Revenues by Application




Communication

34 %

34 %

37 %

Computing

8 %

8 %

9 %

Consumer

37 %

33 %

36 %

Industrial

12 %

15 %

11 %

Automotive

7 %

8 %

6 %

Others

2 %

2 %

1 %

Capacity 




CapEx (US$ million)*

28

33

50

* Capital expenditure excludes building construction costs.

ASE Technology Holding Co., Ltd.

Summary of Consolidated Statement of Income Data

(In NT$ million, except per share data)

(Unaudited)






For the three months ended


For the nine months ended


Sep. 30

2023


Jun. 30

2023


Sep. 30

2022


Sep. 30

2023


Sep. 30

2022


Net revenues











Packaging

68,709


61,846


80,541


190,584


227,318


Testing

12,819


12,292


14,942


36,518


41,285


EMS

70,948


60,384


90,660


189,063


218,036


Others

1,691


1,753


2,483


5,168


6,817


Total net revenues

154,167


136,275


188,626


421,333


493,456













Cost of revenues

(129,251)


(114,534)


(150,654)


(355,337)


(392,625)


Gross profit

24,916


21,741


37,972


65,996


100,831













Operating expenses











Research and development

(6,759)


(6,218)


(6,262)


(18,549)


(17,419)


Selling, general and administrative

(6,752)


(6,111)


(8,027)


(18,934)


(23,010)


Total operating expenses

(13,511)


(12,329)


(14,289)


(37,483)


(40,429)


Operating income

11,405


9,412


23,683


28,513


60,402













Net non-operating income and expenses











Interest expense - net

(1,247)


(1,100)


(966)


(3,424)


(2,240)


Foreign exchange gain (loss)

(2,090)


(1,188)


(2,818)


(2,733)


(5,223)


Gain on valuation of financial assets and liabilities

 

2,820


 

1,914


 

2,878


 

4,837


 

5,827


Gain (loss) on equity-method investments

656


326


358


970


1,043


Others

708


747


480


2,070


1,605


Total non-operating income  and expenses

847


699


(68)


1,720


1,012


Income before tax

12,252


10,111


23,615


30,233


61,414













Income tax expense

(2,890)


(1,914)


(5,046)


(6,582)


(12,803)


Income from operations and before non-controlling interests

 

9,362


8,197


18,569


23,651


48,611


Non-controlling interests

(586)


(457)


(1,104)


(1,318)


(2,251)













Net income attributable to shareholders of the parent

 

8,776


 

7,740


 

17,465


 

22,333


 

46,360













Per share data:











Earnings per share











– Basic

NT$2.04


NT$1.80


NT$4.03


NT$5.20


NT$10.74


– Diluted

NT$2.00


NT$1.76


NT$3.92


NT$5.05


NT$10.34













Earnings per equivalent ADS











– Basic

US$0.130


US$0.118


US$0.268


US$0.338


US$0.739


– Diluted

US$0.127


US$0.115


US$0.260


US$0.328


US$0.711













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

4,347,752


4,342,948


4,373,878


4,346,129


4,368,634













FX (NTD/USD)

31.45


30.57


30.10


30.81


29.07


 

ASE Technology Holding Co., Ltd.

Summary of ATM Statement of Income Data

 (In NT$ million)

(Unaudited)






For the three months ended


For the nine months ended


Sep. 30

2023


Jun. 30

2023


Sep. 30

2022


Sep. 30

2023


Sep. 30

2022


Net revenues











Packaging

69,731


62,607


82,090


193,108


231,905


Testing

12,819


12,292


14,941


36,518


41,284


Direct Material

1,098


1,165


1,765


3,369


4,532


Others

36


44


35


116


133


Total net revenues

83,684


76,108


98,831


233,111


277,854













Cost of revenues

(65,094)


(59,947)


(69,999)


(183,611)


(198,154)


Gross profit

18,590


16,161


28,832


49,500


79,700













Operating expenses











Research and development

(5,344)


(4,748)


(4,901)


(14,361)


(13,491)


Selling, general and administrative

(4,426)


(4,008)


(5,268)


(12,505)


(15,540)


Total operating expenses

(9,770)


(8,756)


(10,169)


(26,866)


(29,031)


Operating income

8,820


7,405


18,663


22,634


50,669


 

ASE Technology Holding Co., Ltd.

Summary of EMS Statement of Income Data

 (In NT$ million)

(Unaudited)






For the three months ended


For the nine months ended


Sep. 30

2023


Jun. 30

2023


Sep. 30

2022


Sep. 30

2023


Sep. 30

2022


Net revenues











Total net revenues

70,970


60,424


90,665


189,127


218,049













Cost of revenues

(64,500)


(54,785)


(81,467)


(172,451)


(196,821)


Gross profit

6,470


5,639


9,198


16,676


21,228













Operating expenses











Research and development

(1,453)


(1,527)


(1,392)


(4,304)


(4,021)


Selling, general and administrative

(2,250)


(2,023)


(2,676)


(6,191)


(7,210)


Total operating expenses

(3,703)


(3,550)


(4,068)


(10,495)


(11,231)


Operating income

2,767


2,089


5,130


6,181


9,997


 

ASE Technology Holding Co., Ltd.

Summary of Consolidated Balance Sheet Data

(In NT$ million)

(Unaudited)











As of Sep. 30, 2023



As of Jun. 30, 2023

Current assets







Cash and cash equivalents



62,812



59,351

Financial assets – current



9,055



7,040

Trade receivables



114,078



98,671

Inventories



76,953



77,568

Others



29,791



28,400

Total current assets



292,689



271,030








Financial assets – non-current & Investments – equity  method



28,402



26,761

Property, plant and equipment



267,316



262,604

Right-of-use assets



10,758



10,691

Intangible assets



70,538



71,298

Others



31,381



30,137

Total assets



701,084



672,521








Current liabilities







Short-term borrowings[2]



69,639



37,798

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



24,219

 



18,191

 

Trade payables



79,053



67,225

Others



68,600



102,551

Total current liabilities



241,511



225,765








Bonds payable



23,589



33,462

Long-term borrowings[3]



94,322



90,224

Other liabilities



26,026



25,653

Total liabilities



385,448



375,104








Equity attributable to shareholders of the parent



295,611



278,624

Non-controlling interests



20,025



18,793

Total liabilities & shareholders' equity



701,084



672,521















Current ratio



1.21



1.20

Net debt to equity ratio



0.47



0.41

 

ASE Technology Holding Co., Ltd.


Summary of Consolidated Statement of Cash Flow Data


(In NT$ million)


(Unaudited)










For the three months ended


For the nine months ended
















Sep. 30


Jun. 30


Sep. 30


Sep. 30


Sep. 30




2023


2023


2022


2023


2022


Cash Flows from Operating Activities












Profit before income tax


12,252


10,111


23,615


30,233


61,414


Depreciation & amortization


14,568


14,488


13,947


43,495


41,199


Other operating activities items


(5,940)


(8,643)


(18,944)


(6,134)


(41,788)


Net cash generated from operating activities


20,880


15,956


18,618


67,594


60,825


Cash Flows from Investing Activities












Net payments for property, plant

and equipment


(14,471)


(12,146)


(17,219)


(41,824)


(51,693)


Other investment activities items


(152)


(2,285)


288


(2,022)


(710)


Net cash used in investing activities


(14,623)


(14,431)


(16,931)


(43,846)


(52,403)


Cash Flows from Financing Activities












Total net proceeds from (repayment of) borrowings and bonds


28,640


(3,395)


1,111


13,624


(13,179)


Dividends paid


(37,841)


-


(29,991)


(37,841)


(29,991)


Other financing activities items


(38)


(1,056)


(228)


(977)


(1,390)


Net cash used in financing activities


(9,239)


(4,451)


(29,108)


(25,194)


(44,560)


Foreign currency exchange effect


6,444


481


6,933


6,479


12,423


Net increase (decrease) in cash

and cash equivalents


3,462


(2,445)


(20,488)


5,033


(23,715)


Cash and cash equivalents at the beginning of period


59,351


62,056


72,846


58,040


76,073


Cash and cash equivalents at the

end of period


62,813


59,611


52,358


63,073


52,358


Cash and cash equivalents in the consolidated balance sheet


62,812


59,351


52,358


62,812


52,358


Cash and cash equivalents included in disposal groups held for sale


1


260


-


261


-






















 

[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] Short-term borrowings include short-term loans and bills payable.

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

Investor Relations Contact
ir@aseglobal.com
Tel: +886.2.6636.5678
https://www.aseglobal.com

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SOURCE ASE Technology Holding Co., Ltd.

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