6-K 1 dp183142_6k.htm FORM 6-K

 

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 27, 2022

 

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 ☐    

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐ 

 

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐ 

 

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

 

 

 

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 27, 2022

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

 

 

 

 

 

 

Investor Relations Contact:

ir@aseglobal.com

Tel: +886.2.6636.5678

http://www.aseglobal.com

 

 

 

ASE Technology Holding Co., Ltd. Reports Its Unaudited Consolidated Financial Results for the Third Quarter of 2022

 

Taipei, Taiwan, R.O.C., October 27, 2022 – 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$188,626 million for 3Q22, up by 25% year-over-year (or up by 31% year-over-year on pro forma basis) and up by 18% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$17,465 million, up from a net income attributable to shareholders of the parent of NT$14,176 million in 3Q21 (or up from a net income attributable to shareholders of the parent of NT$13,256 million in 3Q21 on pro forma basis) and up from a net income attributable to shareholders of the parent of NT$15,988 million in 2Q22. Basic earnings per share for the quarter were NT$4.03 (or US$0.268 per ADS), compared to NT$3.29 for 3Q21 (or NT$3.07 for 3Q21 on pro forma basis) and NT$3.69 for 2Q22. Diluted earnings per share for the quarter were NT$3.92 (or US$0.260 per ADS), compared to NT$3.20 for 3Q21 (or NT$2.99 for 3Q21 on pro forma basis) and NT$3.61 for 2Q22.

 

We are providing you with the unaudited pro forma financial information to assist you in your analysis of the financial aspects of our disposal of the China Sites in 4Q21. The unaudited pro forma financial information was based on our historical financial statements and historical financial statements of our China sites, given effect to the disposal as if it had occurred for the preceding three months and nine months ended 3Q21. For more details on our operations, please refer to “Supplemental Financial Information”, “Summary of Consolidated Statement of Income Data”, and “Summary of ATM Statement of Income Data.”

 

RESULTS OF OPERATIONS

 

3Q22 Results Highlights – Consolidated

 

lNet revenues contribution from packaging operations, testing operations, EMS operations and others, each represented approximately 43%, 8%, 48% and 1%, respectively, of the total net revenues of the quarter.

 

 

 

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 

 

 

 

 

lCost of revenues was NT$150,654 million for the quarter, up from NT$126,051 million in 2Q22.

 

-Raw material cost totaled NT$102,158 million for the quarter, representing 54% of the total net revenues.

 

-Labor cost totaled NT$17,292 million for the quarter, representing 9% of the total net revenues.

 

-Depreciation, amortization and rental expenses totaled NT$12,811 million for the quarter.

 

lGross margin decreased by 1.3 percentage points to 20.1% in 3Q22 from 21.4% in 2Q22.

 

lOperating margin was 12.6% in 3Q22, compared to 12.8% in 2Q22.

 

lIn terms of non-operating items:

 

-Net interest expense was NT$966 million.

 

-Net foreign exchange loss of NT$2,818 million was primarily attributable to the appreciation of U.S. dollar against New Taiwan dollar.

 

-Net gain on valuation of financial assets and liabilities was NT$2,878 million.

 

-Net gain on equity-method investments was NT$358 million.

 

-             Other net non-operating income of NT$480 million was primarily attributable to miscellaneous income. Total non-operating expense for the quarter was NT$68 million.

 

lIncome before tax was NT$23,615 million for 3Q22, compared to NT$21,136 million in 2Q22. We recorded income tax expenses of NT$5,046 million for the quarter, compared to NT$4,479 million in 2Q22.

 

lIn 3Q22, net income attributable to shareholders of the parent was NT$17,465 million, compared to NT$14,176 million in 3Q21 and NT$15,988 million in 2Q22.

 

lOur total number of shares outstanding at the end of the quarter was 4,364,218,532, including treasury stock owned by our subsidiaries in 3Q22. Our 3Q22 basic earnings per share of NT$4.03 (or US$0.268 per ADS) were based on 4,330,471,737 weighted average numbers of shares outstanding in 3Q22. Our 3Q22 diluted earnings per share of NT$3.92 (or US$0.260 per ADS) were based on 4,373,878,048 weighted average number of shares outstanding in 3Q22.

 

3Q22 Results Highlights – ATM

 

lNet revenues were NT$98,831 million, up by 10% year-over-year (or up by 19% year-over-year on pro forma basis) and up by 4% sequentially.

 

lCost of revenues was NT$69,999 million for the quarter, up by 4% sequentially.

 

-Raw material cost totaled NT$28,072 million for the quarter, representing 28% of the total net revenues.

 

-Labor cost totaled NT$14,383 million for the quarter, representing 15% of the total net revenues.

 

-Depreciation, amortization and rental expenses totaled NT$11,574 million for the quarter.

 

2 

 

 

 

 

lGross margin stayed flat, which was 29.2% in both 3Q22 and 2Q22.

 

lOperating margin was 18.9% in both 3Q22 and 2Q22.

 

3Q22 Results Highlights – EMS

 

lNet revenues were NT$90,665 million, up by 37% sequentially.

 

lCost of revenues for the quarter was NT$81,467 million, up by 37% sequentially.

 

-Raw material cost totaled NT$73,999 million for the quarter, representing 82% of the total net revenues.

 

-Labor cost totaled NT$2,799 million for the quarter, representing 3% of the total net revenues.

 

-Depreciation, amortization and rental expenses totaled NT$967 million for the quarter.

 

lGross margin increased by 0.1 percentage points to 10.1% in 3Q22 from 10.0% in 2Q22.

 

lOperating margin was 5.7% in 3Q22, compared to 4.0% in 2Q22.

 

LIQUIdiTY AND CAPITAL RESOURCES

 

lCapital expenditures in 3Q22 totaled US$400 million, of which US$197 million were used in packaging operations, US$134 million in testing operations, US$50 million in EMS operations and US$19 million in interconnect materials operations and others.

 

lTotal unused credit lines amounted to NT$296,099 million as of September 30, 2022.

 

lCurrent ratio was 1.22 and net debt to equity ratio was 0.53 as of September 30, 2022.

 

lTotal number of employees was 99,104 as of September 30, 2022, compared to 97,800 as of June 30, 2022.

 

Business Review

 

Customers

 

ATM Basis

 

lOur five largest customers together accounted for approximately 45% of our total net revenues in 3Q22, compared to 46% in 2Q22. Two customers each accounted for more than 10% of our total net revenues in 3Q22 individually.

 

lOur top 10 customers contributed 59% of our total net revenues in both 3Q22 and 2Q22.

 

lOur customers that are integrated device manufacturers or IDMs accounted for 33% of our total net revenues in 3Q22, compared to 30% in 2Q22.

 

EMS Basis

 

lOur five largest customers together accounted for approximately 74% of our total net revenues in 3Q22, compared to 66% in 2Q22. One customer accounted for more than 10% of our total net revenues in 3Q22.

 

 

3 

 

 

 

 

lOur top 10 customers contributed 81% of our total net revenues in 3Q22, compared to 75% in 2Q22.

 

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 2021 Annual Report on Form 20-F filed on March 29, 2022.

 

4 

 

 

 

Supplemental Financial Information 

(Unaudited)

 

Consolidated Operations

  Pro Forma Basis
  3Q22 2Q22 3Q21 3Q21  
EBITDA (NT$ million) 38,601 35,211 32,655 30,806

 

ATM Operations 

  Pro Forma Basis
  3Q22 2Q22 3Q21 3Q21  
Net Revenues (NT$ million) 98,831 94,998 90,092 83,321
Revenue by Application        
Communication 53% 52% 51% 53%
Computing 16% 16% 15% 15%
Automotive, Consumer & Others 31% 32% 34% 32%
Revenue by Type        
Bumping, Flip Chip, WLP & SiP 42% 43% 36% 39%
Wirebonding 34% 35% 39% 37%
Others 7% 6% 8% 7%
Testing 15% 15% 15% 15%
Material 2% 1% 2% 2%
Capacity & EBITDA        
CapEx (US$ million)* 348 461 407 364
EBITDA (NT$ million) 31,657 30,940 28,588 26,739
Number of Wirebonders 25,887 25,876 29,943 25,723
Number of Testers 5,406 5,194 6,149 4,652

 

EMS Operations 

  3Q22 2Q22 3Q21
Net Revenues (NT$ million) 90,665 66,218 61,127
Revenue by Application      
Communication 37% 35% 38%
Computing 9% 13% 10%
Consumer 36% 28% 33%
Industrial 11% 15% 12%
Automotive 6% 8% 5%
Others 1% 1% 2%
Capacity      
CapEx (US$ million)* 50 53 60

* Capital expenditure excludes building construction costs.

 

5 

 

 

 

ASE Technology Holding Co., Ltd. 

Summary of Consolidated Statement of Income Data 

(In NT$ millions, except per share data) 

(Unaudited)

 

  For the three months ended   For the nine months ended
      Pro Forma Basis       Pro Forma Basis  
 

Sep. 30

2022

 

Jun. 30

2022

 

Sep. 30 

2021

 

Sep. 30 

2021

 

Sep. 30 

2022

 

Sep. 30 

2021 

 

Sep. 30 

2021 

 
Net revenues                            
Packaging 80,541   78,394   73,996   68,287   227,318   197,178   181,548  
Testing 14,942   13,760   13,416   12,353   41,285   36,222   33,212  
EMS 90,660   66,213   61,116   61,116   218,036   157,947   157,947  
Others 2,483   2,072   2,137   2,137   6,817   5,714   5,714  
Total net revenues 188,626   160,439   150,665   143,893   493,456   397,061   378,421  
                             
Cost of revenues (150,654)   (126,051)   (119,881)   (114,642)   (392,625)   (319,586)   (304,832)  
Gross profit 37,972   34,388   30,784   29,251   100,831   77,475   73,589  
                             
Operating expenses                            
Research and development (6,262)   (5,795)   (5,495)   (5,272)   (17,419)   (15,340)   (14,699)  
Selling, general and administrative

(8,027)

 

(7,987)

 

(6,863)

 

(6,516)

 

(23,010)

 

(19,626)

 

(18,628)

 
Total operating expenses (14,289)   (13,782)   (12,358)   (11,788)   (40,429)   (34,966)   (33,327)  
Operating income 23,683   20,606   18,426   17,463   60,402   42,509   40,262  
                             
Net non-operating income and expenses                            
Interest expense - net (966)   (702)   (562)   (556)   (2,240)   (1,703)   (1,672)  
Foreign exchange gain (loss) (2,818)   (1,301)   66   55   (5,223)   899   871  
Gain (loss) on valuation of financial assets and liabilities

2,878

 

1,543

 

(349)

 

(359)

 

5,827

 

(1,008)

 

(1,057)

 
Gain on equity-method investments

358

 

486

 

414

 

414

 

1,043

 

782

 

782

 
Others 480   504   479   412   1,605   1,520   1,308  
Total non-operating income  and expenses

(68)

 

530

 

48

 

(34)

 

1,012

 

490

 

232

 
Income before tax 23,615   21,136   18,474   17,429   61,414   42,999   40,494  
                             
Income tax expense (5,046)   (4,479)   (3,630)   (3,505)   (12,803)   (8,729)   (8,440)  
Income from operations and before non-controlling interests 18,569   16,657   14,844   13,924   48,611   34,270   32,054  
Non-controlling interests (1,104)   (669)   (668)   (668)   (2,251)   (1,278)   (1,278)  
                             

Net income attributable to

shareholders of the parent

17,465

 

15,988

 

14,176

 

13,256

 

46,360

 

32,992

 

30,776

 
                             
Per share data:                            
Earnings per share                            
– Basic NT$4.03   NT$3.69   NT$3.29   NT$3.07   NT$10.74   NT$7.66   NT$7.14  
– Diluted NT$3.92   NT$3.61   NT$3.20   NT$2.99   NT$10.34   NT$7.43   NT$6.92  
                             
Earnings per equivalent ADS                            
– Basic US$0.268   US$0.253   US$0.236   US$0.221   US$0.739   US$0.546   US$0.509  
– Diluted US$0.260   US$0.247   US$0.230   US$0.215   US$0.711   US$0.530   US$0.494  
                             
Number of weighted average shares used in diluted EPS calculation (in thousands)

4,373,878

 

4,375,107

 

4,370,715

 

4,370,715

 

4,368,634

 

4,370,312

 

4,370,312

 
                             
FX (NTD/USD) 30.10   29.26   27.79   27.79   29.07   28.04   28.04  

 

6 

 

 

 

 

ASE Technology Holding Co., Ltd. 

Summary of ATM Statement of Income Data 

(In NT$ millions)

(Unaudited)

 

  For the three months ended   For the nine months ended
      Pro Forma Basis       Pro Forma Basis  
 

Sep. 30 

2022

 

Jun. 30 

2022

 

Sep. 30 

2021

 

Sep. 30 

2021

 

Sep. 30 

2022

 

Sep. 30 

2021

 

Sep. 30 

2021 

 
Net revenues                            
Packaging 82,090   79,894   75,221   69,512   231,905   202,702   187,072  
Testing 14,941   13,760   13,416   12,354   41,284   36,224   33,214  
Direct Material 1,765   1,288   1,429   1,429   4,532   3,845   3,845  
Others 35   56   26   26   133   76   76  
Total net revenues 98,831   94,998   90,092   83,321   277,854   242,847   224,207  
                             
Cost of revenues (69,999)   (67,230)   (65,378)   (60,140)   (198,154)   (179,916)   (165,162)  
Gross profit 28,832   27,768   24,714   23,181   79,700   62,931   59,045  
                             
Operating expenses                            
Research and development (4,901)   (4,455)   (4,254)   (4,032)   (13,491)   (11,780)   (11,138)  
Selling, general and administrative

(5,268)

 

(5,318)

 

(4,829)

 

(4,482)

 

(15,540)

 

(13,775)

 

(12,777)

 
Total operating expenses (10,169)   (9,773)   (9,083)   (8,514)   (29,031)   (25,555)   (23,915)  
Operating income 18,663   17,995   15,631   14,667   50,669   37,376   35,130  
                             

7 

 

 

 

ASE Technology Holding Co., Ltd. 

Summary of EMS Statement of Income Data 

(In NT$ millions)  

(Unaudited)

 

  For the three months ended   For the nine months ended
 

Sep. 30

2022

 

Jun. 30

2022 

 

Sep. 30

2021 

 

Sep. 30

2022 

 

Sep. 30 

2021 

 
                     
Net revenues 90,665   66,218   61,127   218,049   157,974  
                     
Cost of revenues (81,467)   (59,568)   (55,244)   (196,821)   (143,604)  
Gross profit 9,198   6,650   5,883   21,228   14,370  
                     
Operating expenses                    
Research and development (1,392)   (1,380)   (1,270)   (4,021)   (3,641)  
Selling, general and administrative (2,676)   (2,603)   (1,955)   (7,210)   (5,622)  
Total operating expenses (4,068)   (3,983)   (3,225)   (11,231)   (9,263)  
Operating income 5,130   2,667   2,658   9,997   5,107  
                     

8 

 

 

 

 

ASE Technology Holding Co., Ltd. 

Summary of Consolidated Balance Sheet Data 

(In NT$ millions) 

(Unaudited)

 

      As of Sep. 30, 2022     As of Jun. 30, 2022
Current assets            
Cash and cash equivalents     52,358     72,846
Financial assets – current     9,667     6,136
Notes and accounts receivable     140,178     116,617
Inventories     101,287     94,661
Others     29,239     28,503
Total current assets     332,729     318,763
             
Financial assets – non-current & Investments – equity  method     22,926     22,356
Property, plant and equipment     264,508     254,784
Right-of-use assets     11,822     10,853
Intangible assets     73,590     74,300
Others     32,254     32,023
Total assets     737,829     713,079
             
Current liabilities            
Short-term borrowings     78,056     60,722
Current portion of bonds payable & Current portion of  long-term borrowings    

8,157

   

11,835

Notes and accounts payable     104,286     86,534
Others     83,248     111,136
Total current liabilities     273,747     270,227
             
Bonds payable     40,534     40,923
Long-term borrowings2     89,273     97,367
Other liabilities     28,625     26,251
Total liabilities     432,179     434,768
             
Equity attributable to shareholders of the parent     288,361     263,039
Non-controlling interests     17,289     15,272
Total liabilities & shareholders’ equity     737,829     713,079
             
             
Current Ratio     1.22     1.18
Net Debt to Equity Ratio     0.53     0.50

 

 

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

 

9 

 

 

 

 

ASE Technology Holding Co., Ltd. 

Summary of Consolidated Statement of Cash Flow Data 

(In NT$ millions) 

(Unaudited)

 

   

For the three months ended

 

For the nine months ended 

 
    Sep. 30   Jun. 30   Sep. 30   Sep. 30   Sep. 30  
  2022 2022 2021 2022 2021
Cash Flows from Operating Activities                      
Profit before income tax   23,615   21,136   18,474   61,414   42,999  
Depreciation & amortization   13,947   13,749   13,864   41,199   40,454  
Other operating activities items   (18,944)   (19,858)   (17,505)   (41,788)   (34,638)  
Net cash generated from operating activities   18,618   15,027   14,833   60,825   48,815  
Cash Flows from Investing Activities                      

Net payments for property, plant

and equipment

  (17,219)   (17,292)   (20,294)   (51,693)   (52,787)  
Other investment activities items   288   (245)   (139)   (710)   (1,603)  
Net cash used in investing activities   (16,931)   (17,537)   (20,433)   (52,403)   (54,390)  
Cash Flows from Financing Activities                      
Total net proceeds from (repayment of) borrowings and bonds   1,111   (8,980)   25,319   (13,179)   28,279  
Dividends paid   (29,991)   -   (18,083)   (29,991)   (18,083)  
Other financing activities items   (228)   (893)   (854)   (1,390)   (263)  
Net cash generated from (used in) financing activities   (29,108)   (9,873)   6,382   (44,560)   9,933  
Foreign currency exchange effect   6,933   803   (350)   12,423   (2,477)  

Net increase (decrease) in cash

and cash equivalents

  (20,488)   (11,580)   432   (23,715)   1,881  
Cash and cash equivalents at the beginning of period   72,846   84,426   52,987   76,073   51,538  

Cash and cash equivalents at the

end of period

  52,358   72,846   53,419   52,358   53,419  
                                       

 

 

10