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

 

October 26, 2023

 

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 ☐    

  

 

 

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: October 26, 2023

By:     /s/ Joseph Tung
    Name: Joseph Tung
    Title: Chief Financial Officer

 

 

 

 

 

Investor Relations Contact:

ir@aseglobal.com

Tel: +886.2.6636.5678

https://www.aseglobal.com

   

 

 

ASE Technology Holding Co., Ltd. Reports Its Unaudited Consolidated Financial Results for the Third Quarter of 2023

 

Taipei, October 26, 2023 – 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 revenues1 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

 

lNet 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.

 

lCost 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.

 

lGross margin increased by 0.2 percentage points to 16.2% in 3Q23 from 16.0% in 2Q23.

 

lOperating margin was 7.4% in 3Q23, compared to 6.9% in 2Q23.

 

lIn 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.

 

 

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 

 

 

 

 

-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.

 

lIncome 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.

 

lNet 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.

 

lOur 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

 

lNet revenues were NT$83,684 million for the quarter, down by 15% year-over-year and up by 10% sequentially.

 

lCost 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.

 

lGross margin increased by 1.0 percentage points to 22.2% in 3Q23 from 21.2% in 2Q23.

 

lOperating margin was 10.5% in 3Q23, compared to 9.7% in 2Q23.

 

3Q23 Results Highlights – EMS

 

lNet revenues were NT$70,970 million, down by 22% year-over-year and up by 18% sequentially.

 

lCost 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.

 

lGross margin decreased by 0.2 percentage points to 9.1% in 3Q23 from 9.3% in 2Q23.

 

lOperating margin was 3.9% in 3Q23, compared to 3.5% in 2Q23.

 

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LIQUIdiTY AND CAPITAL RESOURCES

 

lCapital 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.

 

lTotal unused credit lines amounted to NT$347,011 million as of September 30, 2023.

 

lCurrent ratio was 1.21 and net debt to equity ratio was 0.47 as of September 30, 2023.

 

lTotal 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

 

lOur 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.

 

lOur top 10 customers contributed 57% of our total net revenues in both 3Q23 and 2Q23.

 

lOur 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

 

lOur 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.

 

lOur 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.

 

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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.

 

4 

 

 

 

 

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 

 

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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 

 

6 

 

 

 

 

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 

 

7 

 

 

 

 

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 borrowings2   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 borrowings3   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 

 

 

2 Short-term borrowings include short-term loans and bills payable.

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

 

8 

 

 

 

 

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    - 

 

 

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