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

Taipei, Taiwan, R.O.C., October 28, 2021 - 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 revenues1 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

l 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.
l 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.
l Gross margin increased 0.9 percentage points to 20.4% in 3Q21 from 19.5% in 2Q21.
l Operating margin was 12.2% in 3Q21, compared to 10.4% in 2Q21.
l In terms of non-operating items:
- Net interest expense was NT$562 million.

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.

- 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.
l 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.
l 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.
l 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 - ATM2

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

3Q21 Results Highlights - EMS

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

2ATM stands for Semiconductor Assembly, Testing and Material.

LIQUIdiTY AND CAPITAL RESOURCES

l 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.
l As of September 30, 2021, total unused credit lines amounted to NT$261,539 million.
l Current ratio was 1.35 and net debt to equity ratio was 0.71 as of September 30, 2021.
l 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

l 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.
l Our top 10 customers contributed 55% of our total net revenues both in 3Q21 and 2Q21.
l Our customers that are integrated device manufacturers or IDMs accounted for 31% of our total net revenues both in 3Q21 and 2Q21.

EMS Basis

l 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.
l 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 athttps://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 borrowings3 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

3 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 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

Attachments

  • Original document
  • Permalink

Disclaimer

ASE Technology Holding Co. Ltd. published this content on 28 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 October 2021 10:32:18 UTC.