ASE Technology Holding Co., Ltd. Reports Unaudited Consolidated Financial Results for the Fourth Quarter and Full Year of 2020
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
Sep. 30
Dec. 31
Dec. 31
Dec. 31
2020 2020 2019 2020 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 10,765 7,217 6,803 29,277 18,053
before non-controlling
interest
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$0.250
Number of weighted
average shares used in 4,295,951 4,281,115 4,284,201 4,288,634 4,262,766
diluted EPS calculation
(in thousands)
FX (NTD/USD) 28.78 29.46 30.54 29.54 30.88
ASE Technology Holding Co., Ltd.
Summary of Consolidated Statement of Comprehensive Income Data - ATM
(In NT$ millions, except per share data)
(Unaudited)
For the three months ended For the year ended
Dec. 31
Sep. 30
Dec. 31
Dec. 31
Dec. 31
2020 2020 2019 2020 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
Sep. 30
Dec. 31
Dec. 31
Dec. 31
2020 2020 2019 2020 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 year ended
For the three months 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 28,135 13,486 31,584 75,074 72,303
activities
Cash Flows from
Investing Activities:
Net payments for
property, plant (15,139) (12,297) (17,261) (57,628) (56,361)
and equipment
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 (15,686) 12,412 (5,119) (8,285) 15,741
of) debts
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 (5,935) (750) (1,089) (8,593) 8,613
and cash equivalents
Cash and cash
equivalents at the 58,223 61,220 60,131 51,518
beginning of period
55,814
Cash and cash
equivalents at the 49,879 57,473 60,131 51,538 60,131
end of period
Cash and cash
equivalents in the 51,538 55,814 60,131 51,538 60,131
consolidated balance
sheet
Cash and cash
equivalents included in (1,659) 1,659
disposal groups held for
sale
Investor Relations Contact:
ir@aseglobal.com
Tel: +886.2.6636.5678
http://www.aseglobal.com
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