ASE Technology Holding Co., Ltd. Reports Unaudited Consolidated Financial Results for the Fourth Quarter and Full Year of 2020

February 4, 2021 2:00 AM EST

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Taipei, Taiwan, R.O.C., Feb. 4, 2021 /PRNewswire/ -- ASE Technology Holding Co., Ltd. (TAIEX: 3711, NYSE: ASX) ("We", "ASEH", or the "Company"), the leading provider of semiconductor manufacturing services in assembly and test, today reported unaudited net revenues[1] of NT$148,877 million for 4Q20, up by 28% year-over-year and up by 21% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$10,044 million, up from a net income attributable to shareholders of the parent of NT$6,383 million in 4Q19 and up from a net income attributable to shareholders of the parent of NT$6,712 million in 3Q20. Basic earnings per share for the quarter were NT$2.35 (or US$0.163 per ADS), compared to basic earnings per share of NT$1.50 for 4Q19 and basic earnings per share of NT$1.57 for 3Q20. Diluted earnings per share for the quarter were NT$2.30 (or US$0.160 per ADS), compared to diluted earnings per share of NT$1.47 for 4Q19 and diluted earnings per share of NT$1.54 for 3Q20.

For the full year of 2020, the Company reported net revenues of NT$476,978 million and net income attributable to shareholders of the parent of NT$27,593 million. Basic earnings per share for the full year of 2020 were NT$6.47 (or US$0.438 per ADS). Diluted earnings per share for the full year of 2020 were NT$6.31 (or US$0.427 per ADS).

RESULTS OF OPERATIONS

4Q20 Results Highlights – Consolidated

  • Net revenue contribution from packaging operations, testing operations, EMS operations and others, each represented approximately 39%, 7%, 53% and 1%, respectively, of total net revenues for the quarter.
  • Cost of revenue was NT$125,578 million for the quarter, up from NT$103,475 million in 3Q20.
    • Raw material cost totaled NT$83,398 million for the quarter, representing 56% of total net revenues.
    • Labor cost totaled NT$14,586 million for the quarter, representing 10% of total net revenues.
    • Depreciation, amortization and rental expenses totaled NT$11,618 million for the quarter.
  • Gross margin decreased 0.3 percentage points to 15.7% in 4Q20 from 16.0% in 3Q20.
  • Operating margin was 7.6% in 4Q20, compared to 7.4% in 3Q20.
  • In terms of non-operating items:
    • Net interest expense was NT$592 million.
    • Net foreign exchange gain of NT$51 million was primarily attributable to the depreciation of U.S. dollar against New Taiwan dollar.
    • Gain on valuation of financial assets and liabilities was NT$165 million.
    • Net gain on equity-method investments was NT$169 million.
    • Other net non-operating income of NT$1,565 million was primarily attributable to gain on revaluation of disposal subsidiary and miscellaneous income. Total non-operating income for the quarter was NT$1,358 million.
  • Income before tax was NT$12,604 million for 4Q20, compared to NT$9,014 million in 3Q20. We recorded income tax expenses of NT$1,839 million for the quarter, compared to NT$1,797 million in 3Q20.
  • In 4Q20, net income attributable to shareholders of the parent was NT$10,044 million, compared to net income attributable to shareholders of the parent of NT$6,383 million in 4Q19 and net income attributable to shareholders of the parent of NT$6,712 million in 3Q20.
  • Our total number of shares outstanding at the end of the quarter was 4,350,675,482, including treasury stock owned by our subsidiaries. Our 4Q20 basic earnings per share of NT$2.35 (or US$0.163 per ADS) were based on 4,271,639,652 weighted average numbers of shares outstanding in 4Q20. Our 4Q20 diluted earnings per share of NT$2.30 (or US$0.160 per ADS) were based on 4,295,951,077 weighted average number of shares outstanding in 4Q20.

4Q20 Results Highlights – ATM[2]

  • Cost of revenues was NT$56,274 million for the quarter, down by 2% sequentially.
    • Raw material cost totaled NT$18,249 million for the quarter, representing 25% of total net revenues.
    • Labor cost totaled NT$12,641 million for the quarter, representing 17% of total net revenues.
    • Depreciation, amortization and rental expenses totaled NT$10,808 million for the quarter.
  • Gross margin increased 2.4 percentage points to 22.6% in 4Q20 from 20.2% in 3Q20.
  • Operating margin was 11.0% in 4Q20, compared to 9.5% in 3Q20.

4Q20 Results Highlights – EMS

  • Cost of revenues for the quarter was NT$72,153 million, up by 50% sequentially.
    • Raw material cost totaled NT$64,985 million for the quarter, representing 82% of total net revenues.
    • Labor cost totaled NT$1,852 million for the quarter, representing 2% of total net revenues.
    • Depreciation, amortization and rental expenses totaled NT$681 million for the quarter.
  • Gross margin decreased 0.9 percentage points to 8.8% in 4Q20 from 9.7% in 3Q20.
  • Operating margin was both 4.4% in 4Q20 and in 3Q20.

2020 Full-Year Results Highlights – Consolidated

  • Net revenues for the full year of 2020 amounted to NT$476,978 million, up by 15% from 2019. The revenue contribution from packaging operations, testing operations, EMS operations and others ,each represented approximately 46%, 10%, 43% and 1%, respectively, of total net revenues for the year.
  • Cost of revenue for the year of 2020 was NT$398,994 million, compared with NT$348,871 million in 2019.
    • Raw material cost totaled NT$240,568 million for the year, representing 50% of total net revenues.
    • Labor cost totaled NT$55,226 million for the year, representing 12% of total net revenues.
    • Depreciation, amortization and rental expenses totaled NT$46,861 million for the year.
  • Gross margin increased 0.7 percentage points to 16.3% in 2020 from 15.6% in 2019.
  • Operating margin increased to 7.3% in 2020 from 5.7% in 2019.
  • Total non-operating income for the year was NT$857 million, compared to total non-operating expenses of NT$164 million for 2019.
  • Income before tax was NT$35,734 million for 2020. We recognized an income tax expense of NT$6,457 million for the year.
  • In 2020, net income attributable to shareholders of the parent amounted to NT$27,593 million, compared with a net income attributable to shareholders of the parent of NT$16,850 million in 2019.
  • Our total number of shares outstanding at the end of the year was 4,350,675,482, including treasury stock owned by our subsidiaries. Our 2020 basic earnings per share of NT$6.47 (or US$0.438 per ADS) were based on 4,265,732,121 weighted average numbers of shares outstanding in 2019. Our 2020 diluted earnings per share of NT$6.31 (or US$0.427 per ADS) were based on 4,288,633,865 weighted average number of shares outstanding in 2020.

2020 Full-Year Results Highlights – ATM

  • Cost of revenues for the full year of 2020 was NT$220,863 million, compared with NT$201,210 million in 2019.
    • Raw material cost totaled NT$75,768 million for the year, representing 27% of total net revenues.
    • Labor cost totaled NT$48,747 million for the year, representing 17% of total net revenues.
    • Depreciation, amortization and rental expenses totaled NT$44,126 million for the year.
  • Gross margin increased to 21.2% in 2019 from 19.9% in 2019.
  • Operating margin increased to 9.8% in 2019 from 7.6% in 2019.

2020 Full-Year Results Highlights – EMS

  • Cost of revenues was NT$185,802 million, up by 23% from 2019.
    • Raw material cost totaled NT$164,287 million for the year, representing 80% of total net revenues.
    • Labor cost totaled NT$6,152 million for the year, representing 3% of total net revenues.
    • Depreciation, amortization and rental expenses totaled NT$2,210 million for the year.
  • Gross margin increased to 9.2% in 2020 from 8.8% in 2019.
  • Operating margin increased to 3.8% in 2020 from 2.9% in 2019.

LIQUIDITY AND CAPITAL RESOURCES

  • Capital expenditures in 4Q20 totaled US$379 million, of which US$296 million were used in packaging operations, US$60 million in testing operations, US$19 million in EMS operations and US$4 million in interconnect materials operations and others.
  • For the full year of 2020, we spent US$1,699 million for capital expenditures, including US$1,108 million in packaging operations, US$422 million in testing operations, US$157 million in EMS operations and US$12 million in interconnect materials operations and others.
  • As of December 31, 2020, total unused credit lines amounted to NT$275,181 million.
  • Current ratio was 1.30 and net debt to equity ratio was 0.65 as of December 31, 2020.
  • Total number of employees was 101,981 as of December 31, 2020, compared to 97,259 as of September 30, 2020.

BUSINESS REVIEW

Customers

ATM CONSOLIDATED BASIS

  • Our five largest customers together accounted for approximately 43% of our total net revenues in 4Q20, compared to 48% in 3Q20. Two customers each accounted for more than 10% of our total net revenues in 4Q20 individually.
  • Our top 10 customers contributed 55% of our total net revenues in 4Q20, compared to 60% in 3Q20.
  • Our customers that are integrated device manufacturers or IDMs accounted for 32% of our total net revenues in 4Q20, compared to 30% in 3Q20.

EMS BASIS

  • Our five largest customers together accounted for approximately 86% of our total net revenues in 4Q20, compared to 83% in 3Q20. One customer accounted for more than 10% of our total net revenues in 4Q20.
  • Our top 10 customers contributed 90% of our total net revenues both in 4Q20 and 3Q20.

 

[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 audited consolidated financial statements, and may vary materially from the 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 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] ATM stands for Semiconductor Assembly, Testing and Material.

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 IC 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 and Mexico 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 http://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 2019 Annual Report on Form 20-F filed on March 31, 2020.

Supplemental Financial Information

Consolidated Operations

4Q/20

3Q/20

4Q/19

EBITDA (NT$ Millions)

26,130

23,230

22,543

ATM Consolidated Operations

4Q/20

3Q/20

4Q/19

Net Revenues (NT$ Millions)

72,752

71,820

69,287

Revenues by Application

Communication

52%

53%

54%

Computing

14%

14%

16%

Automotive, Consumer & Others

34%

33%

30%

Revenues by Type

Bumping, Flip Chip, WLP & SiP

35%

37%

38%

Wirebonding

39%

37%

36%

Discrete and Others

9%

8%

7%

Testing

15%

17%

17%

Material

2%

1%

2%

Capacity & EBITDA

CapEx (US$ Millions)*

359

362

439

EBITDA (NT$ Millions)

21,822

19,775

20,052

Number of Wirebonders

26,461

25,117

25,004

Number of Testers

5,680

5,715

5,402

EMS Operations

4Q/20

3Q/20

4Q/19

Net Revenues (NT$ Millions)

79,149

53,137

48,762

Revenues by End Application

Communication

45%

40%

43%

Computing & Storage

4%

6%

11%

Consumer

39%

40%

32%

Industrial

8%

9%

10%

Automotive

3%

4%

4%

Others

1%

1%

0%

Capacity

CapEx (US$ Millions)*

19

52

18

* Capital expenditure excludes building construction costs.

ASE Technology Holding Co., Ltd.

Summary of Consolidated Statement of Comprehensive Income Data

 (In NT$ millions, except per share data)

(Unaudited)

For the three months ended

 

For the year ended

Dec. 31

2020

Sep. 30

2020

Dec. 31

2019

Dec. 31

2020

Dec. 31

2019

Net revenues:

Packaging

57,260

56,172

53,653

218,667

198,916

Testing

10,667

12,351

11,930

47,271

42,659

EMS

79,141

53,126

48,734

204,691

165,789

Others

1,809

1,546

1,706

6,349

5,818

Total net revenues

148,877

123,195

116,023

476,978

413,182

Cost of revenues

(125,578)

(103,475)

(96,174)

(398,994)

(348,871)

Gross profit

23,299

19,720

19,849

77,984

64,311

Operating expenses:

Research and development

(4,929)

(4,926)

(5,020)

(19,301)

(18,396)

Selling, general and administrative

(7,124)

(5,653)

(6,124)

(23,806)

(22,389)

Total operating expenses

(12,053)

(10,579)

(11,144)

(43,107)

(40,785)

Operating income

11,246

9,141

8,705

34,877

23,526

Net non-operating income (expenses):

Interest expense - net

(592)

(660)

(895)

(2,916)

(3,636)

Foreign exchange gain (loss)

51

561

1,634

1,006

1,126

Gain (loss) on valuation of financial assets   and liabilities

 

165

 

(406)

 

(693)

 

(72)

 

1,646

Gain on equity-method investments

169

277

156

512

264

Others

1,565

101

(325)

2,327

436

Total non-operating income (expenses)

1,358

(127)

(123)

857

(164)

Income before tax

12,604

9,014

8,582

35,734

23,362

Income tax expense

(1,839)

(1,797)

(1,779)

(6,457)

(5,309)

Income from continuing operations and   before non-controlling interest

10,765

7,217

6,803

29,277

18,053

Non-controlling interest

(721)

(505)

(420)

(1,684)

(1,203)

Net income attributable to   shareholders of the parent

 

10,044

 

6,712

 

6,383

 

27,593

 

16,850

Per share data:

Earnings per share

– Basic

NT$2.35

NT$1.57

NT$1.50

NT$6.47

NT$3.96

– Diluted

NT$2.30

NT$1.54

NT$1.47

NT$6.31

NT$3.86

Earnings per equivalent ADS

– Basic

US$0.163

US$0.107

US$0.098

US$0.438

US$0.257

– Diluted

US$0.160

US$0.105

US$0.096

US$0.427

US$0.250

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

4,295,951

4,281,115

4,284,201

4,288,634

4,262,766

FX (NTD/USD)

28.78

29.46

30.54

29.54

30.88

 

ASE Technology Holding Co., Ltd.

Summary of Consolidated Statement of Comprehensive Income Data – ATM

 (In NT$ millions, except per share data)

(Unaudited)

 

For the three months ended

 

For the year ended

Dec. 31

2020

Sep. 30

2020

Dec. 31

2019

Dec. 31

2020

Dec. 31

2019

Net revenues:

Packaging

60,825

58,417

56,093

228,574

204,073

Testing

10,667

12,351

11,932

47,277

42,664

Direct Material

1,229

1,020

1,228

4,314

4,283

Others

31

32

34

132

134

Total net revenues

72,752

71,820

69,287

280,297

251,154

Cost of revenues

(56,274)

(57,280)

(53,590)

(220,863)

(201,210)

Gross profit

16,478

14,540

15,697

59,434

49,944

Operating expenses:

Research and development

(3,882)

(3,827)

(4,001)

(15,133)

(14,352)

Selling, general and administrative

(4,594)

(3,904)

(4,330)

(16,692)

(16,592)

Total operating expenses

(8,476)

(7,731)

(8,331)

(31,825)

(30,944)

Operating income

8,002

6,809

7,366

27,609

19,000

ASE Technology Holding Co., Ltd.

Summary of Consolidated Statement of Comprehensive Income Data – EMS

 (In NT$ millions, except per share data)

(Unaudited)

 

For the three months ended

 

For the year ended

Dec. 31

2020

Sep. 30

2020

Dec. 31

2019

Dec. 31

2020

Dec. 31

2019

Net revenues:

Total net revenues

79,149

53,137

48,762

204,723

165,853

Cost of revenues

(72,153)

(47,990)

(44,443)

(185,802)

(151,234)

Gross profit

6,996

5,147

4,319

18,921

14,619

Operating expenses:

Research and development

(1,073)

(1,126)

(1,063)

(4,267)

(4,170)

Selling, general and administrative

(2,460)

(1,695)

(1,703)

(6,852)

(5,556)

Total operating expenses

(3,533)

(2,821)

(2,766)

(11,119)

(9,726)

Operating income

3,463

2,326

1,553

7,802

4,893

ASE Technology Holding Co., Ltd.

Summary of Consolidated Balance Sheet Data

(In NT$ millions)

(Unaudited)

As of Dec. 31, 2020

As of  Sep. 30, 2020

Current assets:

Cash and cash equivalents

51,538

55,814

Financial assets – current

4,894

5,993

Notes and accounts receivable

91,834

86,718

Inventories

61,988

62,948

Others

14,347

22,167

Total current assets

224,601

233,640

Financial assets – non-current & Investments – equity

  method

 

17,041

 

14,279

Property plant and equipment

233,207

230,938

Right-of-use assets

8,621

8,346

Intangible assets

80,930

76,383

Others

19,460

17,964

Total assets

583,860

581,550

Current liabilities:

Short-term borrowings

34,598

34,099

Current portion of bonds payable & Current portion of     long-term borrowings[3]

 

11,220

 

13,708

Notes and accounts payable

73,268

71,515

Others

53,456

56,152

Total current liabilities

172,542

175,474

Bonds payable

49,254

49,249

Long-term borrowings[4]

108,170

122,097

Other liabilities

19,637

17,187

Total liabilities

349,603

364,007

Equity attributable to shareholders of the parent

218,635

205,510

Non-controlling interests

15,622

12,033

Total liabilities & shareholders' equity

583,860

581,550

Current Ratio

1.30

1.33

Net Debt to Equity Ratio

0.65

0.75

_____________________

[3] Current portion of long-term borrowings include long-term loans and notes payable.

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

ASE Technology Holding Co., Ltd.

Summary of Consolidated Cash Flow Statements

(In NT$ millions)

(Unaudited)

 

For the three months ended

For the year ended

Dec. 31

Sep. 30

Dec. 31

Dec. 31

Dec. 31

2020

2020

2019

2020

2019

Cash Flows from Operating Activities:

Profit before income tax

12,604

9,014

8,582

35,734

23,362

Depreciation & amortization

12,764

13,022

12,645

51,259

50,467

Other operating activities items

2,767

(8,550)

10,357

(11,919)

(1,526)

Net cash generated from operating    activities

28,135

13,486

31,584

75,074

72,303

Cash Flows from Investing Activities:

Net payments for property, plant   and equipment

(15,139)

(12,297)

(17,261)

(57,628)

(56,361)

Other investment activities items

(4,859)

(156)

(682)

(3,319)

1,782

Net cash used in investing activities

(19,998)

(12,453)

(17,943)

(60,947)

(54,579)

Cash Flows from Financing Activities:

Total net proceeds from (repayment   of) debts

(15,686)

12,412

(5,119)

(8,285)

15,741

Dividends paid

-

(8,521)

-

(8,521)

(10,623)

Other financing activities items

989

(5,917)

(7,213)

(5,189)

(11,617)

Net cash used in financing activities

(14,697)

(2,026)

(12,332)

(21,995)

(6,499)

Foreign currency exchange effect

625

243

(2,398)

(725)

(2,612)

Net increase (decrease) in cash    and cash equivalents

(5,935)

(750)

(1,089)

(8,593)

8,613

Cash and cash equivalents at the     beginning of period

 

55,814

58,223

61,220

60,131

51,518

Cash and cash equivalents at the     end of period

49,879

57,473

60,131

51,538

60,131

Cash and cash equivalents in the     consolidated balance sheet

51,538

55,814

60,131

51,538

60,131

Cash and cash equivalents included in     disposal groups held for sale

(1,659)

1,659

-

-

-

 

Investor Relations Contact:

ir@aseglobal.comTel: +886.2.6636.5678http://www.aseglobal.com

Cision View original content:http://www.prnewswire.com/news-releases/ase-technology-holding-co-ltd-reports-unaudited-consolidated-financial-results-for-the-fourth-quarter-and-full-year-of-2020-301221870.html

SOURCE ASE Technology Holding Co., Ltd.



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