ASE Technology Holding Co., Ltd. Reports Unaudited Consolidated Financial Results for the Third Quarter of 2021

October 28, 2021 2:45 AM EDT

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TAIPEI, Taiwan, R.O.C., Oct. 28, 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$150,665 million for 3Q21, up by 22% year-over-year and up by 19% sequentially.  Net income attributable to shareholders of the parent for the quarter totaled NT$14,176 million, up from a net income attributable to shareholders of the parent of NT$6,712 million in 3Q20 and up from a net income attributable to shareholders of the parent of NT$10,338 million in 2Q21.  Basic earnings per share for the quarter were NT$3.29 (or US$0.236 per ADS), compared to NT$1.57 for 3Q20 and NT$2.40 for 2Q21.  Diluted earnings per share for the quarter were NT$3.20 (or US$0.230 per ADS), compared to NT$1.54 for 3Q20 and NT$2.30 for 2Q21.

RESULTS OF OPERATIONS

3Q21 Results Highlights – Consolidated

  • Net revenue contribution from packaging operations, testing operations, EMS operations and others, each represented approximately 49%, 9%, 41% and 1%, respectively, of total net revenues for the quarter.
  • Cost of revenue was NT$119,881 million for the quarter, up from NT$102,122 million in 2Q21.

- Raw material cost totaled NT$73,552 million for the quarter, representing 49% of total net revenues.- Labor cost totaled NT$16,955 million for the quarter, representing 11% of total net revenues. - Depreciation, amortization and rental expenses totaled NT$12,710 million for the quarter.

  • Gross margin increased 0.9 percentage points to 20.4% in 3Q21 from 19.5% in 2Q21.
  • Operating margin was 12.2% in 3Q21, compared to 10.4% in 2Q21.
  • In terms of non-operating items:

- Net interest expense was NT$562 million.- Net foreign exchange gain of NT$66 million was primarily attributable to the depreciation of U.S. dollar against New Taiwan dollar.- Loss on valuation of financial assets and liabilities was NT$349 million.- Net gain on equity-method investments was NT$414 million.- Other net non-operating income of NT$479 million was primarily attributable to miscellaneous income.  Total non-operating income for the quarter was NT$48 million.

  • Income before tax was NT$18,474 million for 3Q21, compared to NT$13,344 million in 2Q21.  We recorded income tax expenses of NT$3,630 million for the quarter, compared to NT$2,648 million in 2Q21.
  • In 3Q21, net income attributable to shareholders of the parent was NT$14,176 million, compared to NT$6,712 million in 3Q20 and NT$10,338 million in 2Q21.
  • Our total number of shares outstanding at the end of the quarter was 4,388,414,582, including treasury stock owned by our subsidiaries.  Our 3Q21 basic earnings per share of NT$3.29 (or US$0.236 per ADS) were based on 4,314,088,250 weighted average numbers of shares outstanding in 3Q21.  Our 3Q21 diluted earnings per share of NT$3.20 (or US$0.230 per ADS) were based on 4,370,715,418 weighted average number of shares outstanding in 3Q21.

3Q21 Results Highlights – ATM[2]

  • Cost of revenues was NT$65,378 million for the quarter, up by 11% sequentially.

- Raw material cost totaled NT$24,441 million for the quarter, representing 27% of total net revenues.- Labor cost totaled NT$14,512 million for the quarter, representing 16% of total net revenues.- Depreciation, amortization and rental expenses totaled NT$11,615 million for the quarter.

  • Gross margin increased 1.8 percentage points to 27.4% in 3Q21 from 25.6% in 2Q21.
  • Operating margin was 17.3% in 3Q21, compared to 15.0% in 2Q21.

3Q21 Results Highlights – EMS

  • Cost of revenues for the quarter was NT$55,244 million, up by 24% sequentially.

- Raw material cost totaled NT$48,978 million for the quarter, representing 80% of total net revenues.- Labor cost totaled NT$2,337 million for the quarter, representing 4% of total net revenues.- Depreciation, amortization and rental expenses totaled NT$886 million for the quarter.

  • Gross margin increased 0.5 percentage points to 9.6% in 3Q21 from 9.1% in 2Q21.
  • Operating margin was 4.3% in 3Q21, compared to 2.6% in 2Q21.

LIQUIDITY AND CAPITAL RESOURCES

  • Capital expenditures in 3Q21 totaled US$468 million, of which US$294 million were used in packaging operations, US$101 million in testing operations, US$60 million in EMS operations and US$13 million in interconnect materials operations and others.
  • As of September 30, 2021, total unused credit lines amounted to NT$261,539 million.
  • Current ratio was 1.35 and net debt to equity ratio was 0.71 as of September 30, 2021.
  • Total number of employees was 104,471 as of September 30, 2021, compared to 103,164 as of June 30, 2021.

Business Review

Customers

ATM CONSOLIDATED BASIS

  • Our five largest customers together accounted for approximately 44% of our total net revenues in 3Q21, compared to 43% in 2Q21. Two customers each accounted for more than 10% of our total net revenues in 3Q21 individually.
  • Our top 10 customers contributed 55% of our total net revenues both in 3Q21 and 2Q21.
  • Our customers that are integrated device manufacturers or IDMs accounted for 31% of our total net revenues both in 3Q21 and 2Q21. 

EMS BASIS

  • Our five largest customers together accounted for approximately 74% of our total net revenues in 3Q21, compared to 70% in 2Q21.  One customer accounted for more than 10% of our total net revenues in 3Q21.
  • Our top 10 customers contributed 81% of our total net revenues in 3Q21, compared to 78% in 2Q21.

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 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 presentation. 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 presentation. 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 2020 Annual Report on Form 20-F filed on April 6, 2021.

Supplemental Financial Information

Consolidated Operations

3Q/21

2Q/21

3Q/20

EBITDA (NT$ Millions)

32,655

27,350

23,230

ATM Consolidated Operations

3Q/21

2Q/21

3Q/20

Net Revenues (NT$ Millions)

90,092

78,988

71,820

Revenues by Application

Communication

51%

50%

53%

Computing

15%

14%

14%

Automotive, Consumer & Others

34%

36%

33%

Revenues by Type

Bumping, Flip Chip, WLP & SiP

36%

33%

37%

Wirebonding

39%

42%

37%

Discrete and Others

8%

8%

8%

Testing

15%

15%

17%

Material

2%

2%

1%

Capacity & EBITDA

CapEx (US$ Millions)*

407

570

362

EBITDA (NT$ Millions)

28,588

24,671

19,775

Number of Wirebonders

29,943

29,056

25,117

Number of Testers

6,149

6,001

5,715

EMS Operations

3Q/21

2Q/21

3Q/20

Net Revenues (NT$ Millions)

61,127

49,154

53,137

Revenues by End Application

Communication

38%

39%

40%

Computing & Storage

10%

10%

6%

Consumer

33%

28%

40%

Industrial

12%

16%

9%

Automotive

5%

5%

4%

Others

2%

2%

1%

Capacity 

CapEx (US$ Millions)*

60

39

52

* 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 nine months ended

Sep. 30

2021

Jun. 30

2021

Sep. 30

2020

Sep. 30

2021

Sep. 30

2020

Net revenues:

Packaging

73,996

64,149

56,172

197,178

161,407

Testing

13,416

11,676

12,351

36,222

36,604

EMS

61,116

49,147

53,126

157,947

125,550

Others

2,137

1,954

1,546

5,714

4,540

Total net revenues

150,665

126,926

123,195

397,061

328,101

Cost of revenues

(119,881)

(102,122)

(103,475)

(319,586)

(273,416)

Gross profit

30,784

24,804

19,720

77,475

54,685

Operating expenses:

Research and development

(5,495)

(5,076)

(4,926)

(15,340)

(14,372)

Selling, general and administrative

(6,863)

(6,554)

(5,653)

(19,626)

(16,682)

Total operating expenses

(12,358)

(11,630)

(10,579)

(34,966)

(31,054)

Operating income

18,426

13,174

9,141

42,509

23,631

Net non-operating (expenses) income:

Interest expense - net

(562)

(569)

(660)

(1,703)

(2,324)

Foreign exchange gain (loss)

66

1,057

561

899

955

Gain (loss) on valuation of financial assets and liabilities

(349)

 

(1,050)

 

(406)

(1,008)

 

(237)

Gain (loss) on equity-method investments

414

219

277

782

343

Others

479

513

101

1,520

762

Total non-operating income (expenses)

48

170

(127)

490

(501)

Income before tax

18,474

13,344

9,014

42,999

23,130

Income tax expense

(3,630)

(2,648)

(1,797)

(8,729)

(4,618)

Income from continuing operations and

before non-controlling interest

14,844

10,696

7,217

34,270

18,512

Non-controlling interest

(668)

(358)

(505)

(1,278)

(964)

Net income attributable to

shareholders of the parent

 

14,176

 

10,338

 

6,712

 

32,992

 

17,548

Per share data:

Earnings (losses) per share

– Basic

NT$3.29

NT$2.40

NT$1.57

NT$7.66

NT$4.12

– Diluted

NT$3.20

NT$2.30

NT$1.54

NT$7.43

NT$4.01

Earnings (losses) per equivalent ADS

– Basic

US$0.236

US$0.171

US$0.107

US$0.546

US$0.276

– Diluted

US$0.230

US$0.164

US$0.105

US$0.530

US$0.269

Number of weighted average shares used in

diluted EPS calculation (in thousands)

4,370,715

4,362,634

4,281,115

4,370,312

4,284,010

FX (NTD/USD)

27.79

28.03

29.46

28.04

29.80

 

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 nine months ended

Sep. 30

2021

Jun. 30

2021

Sep. 30

2020

Sep. 30

2021

Sep. 30

2020

Net revenues:

Packaging

75,221

65,936

58,417

202,702

167,749

Testing

13,416

11,677

12,351

36,224

36,610

Direct Material

1,429

1,372

1,020

3,845

3,085

Others

26

3

32

76

101

Total net revenues

90,092

78,988

71,820

242,847

207,545

Cost of revenues

(65,378)

(58,778)

(57,280)

(179,916)

(164,589)

Gross profit

24,714

20,210

14,540

62,931

42,956

Operating expenses:

Research and development

(4,254)

(3,829)

(3,827)

(11,780)

(11,252)

Selling, general and administrative

(4,829)

(4,554)

(3,904)

(13,775)

(12,099)

Total operating expenses

(9,083)

(8,383)

(7,731)

(25,555)

(23,351)

Operating income

15,631

11,827

6,809

37,376

19,605

 

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 nine months ended

Sep. 30

2021

Jun. 30

2021

Sep. 30

2020

Sep. 30

2021

Sep. 30

2020

Net revenues:

Total net revenues

61,127

49,154

53,137

157,974

125,573

Cost of revenues

(55,244)

(44,678)

(47,990)

(143,604)

(113,648)

Gross profit

5,883

4,476

5,147

14,370

11,925

Operating expenses:

Research and development

(1,270)

(1,274)

(1,126)

(3,641)

(3,194)

Selling, general and administrative

(1,955)

(1,929)

(1,695)

(5,622)

(4,392)

Total operating expenses

(3,225)

(3,203)

(2,821)

(9,263)

(7,586)

Operating income

2,658

1,273

2,326

5,107

4,339

 

ASE Technology Holding Co., Ltd.Summary of Consolidated Balance Sheet Data(In NT$ millions)(Unaudited)

 

As of Sep. 30, 2021

As of  Jun. 30, 2021

Current assets:

Cash and cash equivalents

53,419

52,987

Financial assets – current

4,133

4,492

Notes and accounts receivable

108,156

88,644

Inventories

77,830

75,869

Others

16,695

15,369

Total current assets

260,233

237,361

Financial assets – non-current & Investments – equity

  method

 

20,915

 

19,982

Property plant and equipment

252,384

244,861

Right-of-use assets

10,321

9,842

Intangible assets

77,283

78,254

Others

29,331

21,557

Total assets

650,467

611,857

Current liabilities:

Short-term borrowings

36,610

40,460

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

6,539

 

8,563

 

Notes and accounts payable

83,060

70,893

Others

66,417

62,778

Total current liabilities

192,626

182,694

Bonds payable

48,498

48,474

Long-term borrowings[3]

137,015

106,124

Other liabilities

21,489

20,060

Total liabilities

399,628

357,352

Equity attributable to shareholders of the parent

235,186

238,993

Non-controlling interests

15,653

15,512

Total liabilities & shareholders' equity

650,467

611,857

Current Ratio

1.35

1.30

Net Debt to Equity Ratio

0.71

0.60

 

ASE Technology Holding Co., Ltd.Summary of Consolidated Cash Flow Statements(In NT$ millions)(Unaudited)

 

For the three months ended

For the nine months ended

Sep. 30

Jun. 30

Sep. 30

Sep. 30

Sep. 30

2021

2021

2020

2021

2020

Cash Flows from Operating Activities:

Profit before income tax

18,474

13,344

9,014

42,999

23,130

Depreciation & amortization

13,864

13,460

13,022

40,454

38,495

Other operating activities items

(17,298)

(8,573)

(8,550)

(34,430)

(14,686)

Net cash generated from operating activities

15,040

18,231

13,486

49,023

46,939

Cash Flows from Investing Activities:

Net payments for property, plant and equipment

(20,294)

(18,440)

(12,297)

(52,787)

(42,489)

Other investment activities items

(348)

(1,259)

(156)

(1,812)

1,540

Net cash used in investing activities

(20,642)

(19,699)

(12,453)

(54,599)

(40,949)

Cash Flows from Financing Activities:

Total net proceeds from (repayment of) borrowings

25,319

(16,640)

12,412

28,279

7,401

Dividends paid

(18,083)

-

(8,521)

(18,083)

(8,521)

Other financing activities items

(854)

(1,022)

(5,917)

(263)

(6,178)

Net cash generated from (used in) financing activities

6,382

(17,662)

(2,026)

9,933

(7,298)

Foreign currency exchange effect

(348)

(1,666)

243

(2,476)

(1,350)

Net increase (decrease) in cash and cash equivalents

432

(20,796)

(750)

1,881

(2,658)

Cash and cash equivalents at the beginning of period

52,987

73,783

58,223

51,538

60,131

Cash and cash equivalents at the end of period

53,419

52,987

57,473

53,419

57,473

Cash and cash equivalents in the consolidated balance sheet

53,419

52,987

55,814

53,419

55,814

Cash and cash equivalents included in disposal groups held for sale

-

-

1,659

-

1,659

 

[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.

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

 

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

Cision View original content:https://www.prnewswire.com/news-releases/ase-technology-holding-co-ltd-reports-unaudited-consolidated-financial-results-for-the-third-quarter-of-2021-301410615.html

SOURCE ASE Technology Holding Co., Ltd.



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