ASE Technology Holding Co., Ltd. Reports Unaudited Consolidated Financial Results for the Third Quarter of 2020

TAIPEI, Taiwan, R.O.C., Oct. 30, 2020 /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$123,195 million for 3Q20, up by 5% year-over-year and up by 15% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$6,712 million, up from a net income attributable to shareholders of the parent of NT$5,734 million in 3Q19 and down from a net income attributable to shareholders of the parent of NT$6,937 million in 2Q20.  Basic earnings per share for the quarter were NT$1.57 (or US$0.107 per ADS), compared to basic earnings per share of NT$1.35 for 3Q19 and basic earnings per share of NT$1.63 for 2Q20.  Diluted earnings per share for the quarter were NT$1.54 (or US$0.105 per ADS), compared to diluted earnings per share of NT$1.33 for 3Q19 and diluted earnings per share of NT$1.60 for 2Q20.

RESULTS OF OPERATIONS

3Q20 Results Highlights – Consolidated

  • Net 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 quarter.
  • Cost of revenue was NT$103,475 million for the quarter, up from NT$88,740 million in 2Q20.
    • Raw material cost totaled NT$62,860 million for the quarter, representing 51% of total net revenues
    • Labor cost totaled NT$13,725 million for the quarter, representing 11% of total net revenues
    • Depreciation, amortization and rental expenses totaled NT$11,878 million for the quarter.
  • Gross margin decreased 1.5 percentage points to 16.0% in 3Q20 from 17.5% in 2Q20.
  • Operating margin was 7.4% in 3Q20, compared to 7.8% in 2Q20.
  • In terms of non-operating items:
    • Net interest expense was NT$660 million.
    • Net foreign exchange gain of NT$561 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$406 million.
    • Net gain on equity-method investments was NT$277 million.
    • Other net non-operating income of NT$101 million were primarily attributable to miscellaneous incomes. Total non-operating expenses for the quarter were NT$127 million.
  • Income before tax was NT$9,014 million for 3Q20, compared to NT$8,879 million in 2Q20. We recorded income tax expenses of NT$1,797 million for the quarter, compared to NT$1,646 million in 2Q20.
  • In 3Q20, net income attributable to shareholders of the parent was NT$6,712 million, compared to net income attributable to shareholders of the parent of NT$5,734 million in 3Q19 and net income attributable to shareholders of the parent of NT$6,937 million in 2Q20.
  • Our total number of shares outstanding at the end of the quarter was 4,338,531,132, including treasury stock owned by our subsidiaries. Our 3Q20 basic earnings per share of NT$1.57 (or US$0.107 per ADS) were based on 4,265,546,050 weighted average numbers of shares outstanding in 3Q20. Our 3Q20 diluted earnings per share of NT$1.54 (or US$0.105 per ADS) were based on 4,281,115,585 weighted average number of shares outstanding in 3Q20.

3Q20 Results Highlights – ATM[2]

  • Cost of revenues was NT$57,280 million for the quarter, up by 5% sequentially.
    • Raw material cost totaled NT$20,102 million for the quarter, representing 28% of total net revenues.
    • Labor cost totaled NT$12,104 million for the quarter, representing 17% of total net revenues.
    • Depreciation, amortization and rental expenses totaled NT$11,198 million for the quarter.
  • Gross margin decreased 1.5 percentage points to 20.2% in 3Q20 from 21.7% in 2Q20.
  • Operating margin was 9.5% in 3Q20, compared to 10.4% in 2Q20.

3Q20 Results Highlights – EMS

  • Cost of revenues for the quarter was NT$47,990 million, up by 33% sequentially.
    • Raw material cost totaled NT$42,621 million for the quarter, representing 80% of total net revenues.
    • Labor cost totaled NT$1,540 million for the quarter, representing 3% of total net revenues.
    • Depreciation, amortization and rental expenses totaled NT$551 million for the quarter.
  • Gross margin increased 0.3 percentage points to 9.7% in 3Q20 from 9.4% in 2Q20.
  • Operating margin increased to 4.4% in 3Q20 from 3.1% in 2Q20.

LIQUIdiTY AND CAPITAL RESOURCES

  • Capital expenditures in 3Q20 totaled US$415 million, of which US$288 million were used in packaging operations, US$73 million in testing operations, US$52 million in EMS operations and US$2 million in interconnect materials operations and others.
  • As of September 30, 2020, total unused credit lines amounted to NT$255,582 million.
  • Current ratio was 1.33 and net debt to equity ratio was 0.75 as of September 30, 2020.
  • Total number of employees was 97,259 as of September 30, 2020, compared to 95,448 as of June 30, 2020.

Business Review

Customers

ATM consolidated Basis

  • Our five largest customers together accounted for approximately 48% of our total net revenues in 3Q20, compared to 50% in 2Q20. Three customers each accounted for more than 10% of our total net revenues in 3Q20 individually.
  • Our top 10 customers contributed 60% of our total net revenues in 3Q20, compared to 61% in 2Q20.
  • Our customers that are integrated device manufacturers or IDMs accounted for 30% of our total net revenues in 3Q20, compared to 29% in 2Q20.

EMS Basis

  • Our five largest customers together accounted for approximately 83% of our total net revenues in 3Q20, compared to 78% in 2Q20. One customer accounted for more than 10% of our total net revenues in 3Q20.
  • Our top 10 customers contributed 90% of our total net revenues in 3Q20, compared to 89% in 2Q20.

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


3Q/20

2Q/20

3Q/19

EBITDA (NT$ Millions)

23,230

22,488

21,214

ATM Consolidated Operations


3Q/20

2Q/20

3Q/19

Net Revenues (NT$ Millions)

71,820

69,516

67,901

Revenues by Application




Communication

53%

54%

53%

Computer

14%

14%

14%

Automotive, Consumer & Others

33%

32%

33%

Revenues by Type




Bumping, Flip Chip, WLP & SiP

37%

38%

35%

Wirebonding

37%

35%

37%

Discrete and Others

8%

7%

9%

Testing

17%

18%

17%

Material

1%

2%

2%

Capacity & EBITDA




CapEx (US$ Millions)*

362

424

413

EBITDA (NT$ Millions)

19,775

20,037

18,312

Number of Wirebonders

25,117

24,667

25,008

Number of Testers

5,715

5,790

5,254

EMS Operations


3Q/20

2Q/20

3Q/19

Net Revenues (NT$ Millions)

53,137

39,709

50,599

Revenues by End Application




Communication

40%

46%

36%

Computer & Storage

6%

12%

9%

Consumer

40%

28%

41%

Industrial

9%

10%

9%

Automotive

4%

3%

4%

Others

1%

1%

1%

Capacity 




CapEx (US$ Millions)*

52

70

23

* 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

2020


Jun. 30

2020


Sep. 30

2019


Sep. 30

2020


Sep. 30

2019


Net revenues:











Packaging

56,172


53,622


53,804


161,407


145,263


Testing

12,351


12,690


11,493


36,604


30,729


EMS

53,126


39,703


50,584


125,550


117,055


Others

1,546


1,534


1,676


4,540


4,112


Total net revenues

123,195


107,549


117,557


328,101


297,159













Cost of revenues

(103,475)


(88,740)


(98,449)


(273,416)


(252,697)


Gross profit

19,720


18,809


19,108


54,685


44,462













Operating expenses:











Research and development

(4,926)


(4,837)


(4,906)


(14,372)


(13,376)


Selling, general and administrative

(5,653)


(5,545)


(5,817)


(16,682)


(16,265)


Total operating expenses

(10,579)


(10,382)


(10,723)


(31,054)


(29,641)


Operating income

9,141


8,427


8,385


23,631


14,821













Net non-operating (expenses) income:











Interest expense - net

(660)


(771)


(866)


(2,324)


(2,741)


Foreign exchange gain (loss)

561


718


12


955


(508)


Gain (loss) on valuation of financial assets and liabilities

 

(406)


 

(17)


 

(19)


 

(237)


 

2,339


Gain on equity-method investments

277


105


148


343


108


Others

101


417


61


762


761


Total non-operating income (expenses)

(127)


452


(664)


(501)


(41)


Income before tax

9,014


8,879


7,721


23,130


14,780













Income tax expense

(1,797)


(1,646)


(1,501)


(4,618)


(3,530)


Income from continuing operations and

     before noncontrolling interest

7,217


7,233


6,220


18,512


11,250


Noncontrolling interest

(505)


(296)


(486)


(964)


(783)













Net income attributable to

     shareholders of the parent

 

6,712


 

6,937


 

5,734


 

17,548


 

10,467













Per share data:











Earnings (losses) per share











– Basic

NT$1.57


NT$1.63


NT$1.35


NT$4.12


NT$2.46


– Diluted

NT$1.54


NT$1.60


NT$1.33


NT$4.01


NT$2.40













Earnings (losses) per equivalent ADS











– Basic

US$0.107


US$0.109


US$0.087


US$0.276


US$0.159


– Diluted

US$0.105


US$0.107


US$0.085


US$0.269


US$0.155













Number of weighted average shares used in

     diluted EPS calculation (in thousands)

4,281,115


4,273,770


4,261,515


4,284,010


4,256,985













FX (NTD/USD)

29.46


29.94


31.17


29.80


30.99


 

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

2020


Jun. 30

2020


Sep. 30

2019


Sep. 30

2020


Sep. 30

2019


Net revenues:











Packaging

58,417


55,732


55,163


167,749


147,980


Testing

12,351


12,693


11,495


36,610


30,732


Direct Material

1,020


1,051


1,211


3,085


3,055


Others

32


40


32


101


100


Total net revenues

71,820


69,516


67,901


207,545


181,867













Cost of revenues

(57,280)


(54,434)


(53,193)


(164,589)


(147,620)


Gross profit

14,540


15,082


14,708


42,956


34,247













Operating expenses:











Research and development

(3,827)


(3,777)


(3,894)


(11,252)


(10,351)


Selling, general and administrative

(3,904)


(4,081)


(4,401)


(12,099)


(12,262)


Total operating expenses

(7,731)


(7,858)


(8,295)


(23,351)


(22,613)


Operating income

6,809


7,224


6,413


19,605


11,634














 

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

2020


Jun. 30

2020


Sep. 30

2019


Sep. 30

2020


Sep. 30

2019


Net revenues:











Total net revenues

53,137


39,709


50,599


125,573


117,091













Cost of revenues

(47,990)


(35,979)


(46,105)


(113,648)


(106,791)


Gross profit

5,147


3,730


4,494


11,925


10,300













Operating expenses:











Research and development

(1,126)


(1,085)


(1,042)


(3,194)


(3,107)


Selling, general and administrative

(1,695)


(1,403)


(1,353)


(4,392)


(3,853)


Total operating expenses

(2,821)


(2,488)


(2,395)


(7,586)


(6,960)


Operating income

2,326


1,242


2,099


4,339


3,340













 

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


As of Sep. 30, 2020


As of Jun. 30, 2020









Current assets:








Cash and cash equivalents



55,814




58,223

Financial assets – current



5,993




5,483

Notes and accounts receivable



86,718




73,763

Inventories



62,948




50,649

Others



22,167




14,395

Total current assets



233,640




202,513









Financial assets – non-current & Investments – equity method



 

14,279




 

12,950

Property plant and equipment



230,938




238,757

Right-of-use assets



8,346




9,091

Intangible assets



76,383




77,154

Others



17,964




18,127

Total assets



581,550




558,592









Current liabilities:








Short-term borrowings



34,099




45,814

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



 

13,708




 

11,366

Notes and accounts payable



71,515




54,400

Others



56,152




61,045

Total current liabilities



175,474




172,625









Bonds payable



49,249




39,263

Long-term borrowings[4]



122,097




115,518

Other liabilities



17,187




17,251

Total liabilities



364,007




344,657









Equity attributable to shareholders of the parent



205,510




200,409

Non-controlling interests



12,033




13,526

Total liabilities & shareholders' equity



581,550




558,592

















Current Ratio



1.33




1.17









Net Debt to Equity Ratio



0.75




0.72

  

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



2020

2020

2019

2020

2019

Cash Flows from Operating Activities:












Profit before income tax


9,014


8,879


7,721


23,130


14,780


Depreciation & amortization


13,022


12,785


12,610


38,495


37,822


Other operating activities items


(8,550)


(1,659)


(7,252)


(14,686)


(11,883)


Net cash generated from operating activities


13,486


20,005


13,079


46,939


40,719


Cash Flows from Investing Activities:












Net payments for property, plant and equipment


(12,297)


(16,587)


(18,771)


(42,489)


(39,100)


Other investment activities items


(156)


1,902


488


1,541


2,464


Net cash used in investing activities


(12,453)


(14,685)


(18,283)


(40,948)


(36,636)


Cash Flows from Financing Activities:












Total net proceeds from (repayment of) debts


12,412


(18,900)


26,553


7,401


20,860


Dividends paid


(8,521)


-


(10,623)


(8,521)


(10,623)


Other financing activities items


(5,917)


(457)


(3,356)


(6,178)


(4,404)


Net cash generated from (used in) financing activities


(2,026)


(19,357)


12,574


(7,298)


5,833


Foreign currency exchange effect


243


(1,569)


(1,240)


(1,351)


(214)


Net increase (decrease) in cash and cash equivalents


(750)


(15,606)


6,130


(2,658)


9,702


Cash and cash equivalents at the beginning of period


58,223


73,829


55,090


60,131


51,518


Cash and cash equivalents at the end of period


57,473


58,223


61,220


57,473


61,220


Cash and cash equivalents in the consolidated balance sheet


55,814


58,223


61,220


55,814


61,220


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

[4] 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:http://www.prnewswire.com/news-releases/ase-technology-holding-co-ltd-reports-unaudited-consolidated-financial-results-for-the-third-quarter-of-2020-301163639.html

SOURCE ASE Technology Holding Co., Ltd.

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.