ASE Technology Holding Co., Ltd. Reports Its Unaudited Consolidated Financial Results for the First Quarter of 2024
TAIPEI, April 25, 2024 /PRNewswire/ -- 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 revenues([1]) of NT$132,803 million for 1Q24, up by 1.5% year-over-year and down by 17.3% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$5,682 million, down from NT$5,817 million in 1Q23 and down from NT$9,392 million in 4Q23. Basic earnings per share for the quarter were NT$1.32 (or US$0.084 per ADS), compared to NT$1.36 for 1Q23 and NT$2.18 for 4Q23. Diluted earnings per share for the quarter were NT$1.28 (or US$0.082 per ADS), compared to NT$1.30 for 1Q23 and NT$2.13 for 4Q23.
RESULTS OF OPERATIONS
1Q24 Results Highlights - Consolidated
-- Net revenues from packaging operations, testing operations, EMS
operations, and others represented approximately 45%, 9%, 45%, and 1% of
the total net revenues for the quarter, respectively.
-- Cost of revenues was NT$111,935 million for the quarter, down from
NT$134,820 million in 4Q23.
-- Raw material cost totaled NT$66,845 million for the quarter,
representing 50% of the total net revenues.
-- Labor cost totaled NT$15,378 million for the quarter, representing
12% of the total net revenues.
-- Depreciation, amortization and rental expenses totaled NT$13,211
million for the quarter.
-- Gross margin decreased by 0.3 percentage points to 15.7% in 1Q24 from
16.0% in 4Q23.
-- Operating margin was 5.7% in 1Q24, compared to 7.4% in 4Q23.
-- In terms of non-operating items:
-- Net interest expense was NT$1,107 million.
-- Net foreign exchange loss was NT$3,219 million, primarily
attributable to the appreciation of the U.S. dollar against the New
Taiwan dollar.
-- Net gain on valuation of financial assets and liabilities was
NT$4,098 million.
-- Net gain on equity-method investments was NT$57 million.
-- Other net non-operating income was NT$506 million, primarily
attributable to miscellaneous income.
Total non-operating income for the quarter was NT$335 million.
-- Income before tax was NT$7,860 million in 1Q24, compared to NT$12,367
million in 4Q23. We recorded income tax expenses of NT$1,904 million for
the quarter, compared to NT$2,461 million in 4Q23.
-- Net income attributable to shareholders of the parent was NT$5,682
million in 1Q24, compared to NT$5,817 million in 1Q23 and NT$9,392
million in 4Q23.
-- Our total number of shares outstanding at the end of the quarter was
4,392,550,237, including treasury stock owned by our subsidiaries in
1Q24. Our 1Q24 basic earnings per share of NT$1.32 (or US$0.084 per ADS)
were based on 4,312,488,924 weighted average numbers of shares
outstanding in 1Q24. Our 1Q24 diluted earnings per share of NT$1.28 (or
US$0.082 per ADS) were based on 4,368,340,298 weighted average number of
shares outstanding in 1Q24.
1Q24 Results Highlights - ATM
-- Net revenues were NT$73,908 million for the quarter, up by 0.8%
year-over-year and down by 9.9% sequentially.
-- Cost of revenues was NT$58,351 million for the quarter, remained stable
year-over-year and down by 7% sequentially.
-- Raw material cost totaled NT$20,120 million for the quarter,
representing 27% of the total net revenues.
-- Labor cost totaled NT$12,245 million for the quarter, representing
17% of the total net revenues.
-- Depreciation, amortization and rental expenses totaled NT$11,780
million for the quarter.
-- Gross margin decreased by 2.4 percentage points to 21.0% in 1Q24 from
23.4% in 4Q23.
-- Operating margin was 8.2% in 1Q24, compared to 11.2% in 4Q23.
1Q24 Results Highlights - EMS
-- Net revenues were NT$59,365 million, up by 2.8% year-over-year and down
by 25.0% sequentially.
-- Cost of revenues for the quarter was NT$53,866 million, up by 1%
year-over-year and down by 26% sequentially.
-- Raw material cost totaled NT$46,662 million for the quarter,
representing 79% of the total net revenues.
-- Labor cost totaled NT$3,009 million for the quarter, representing 5%
of the total net revenues.
-- Depreciation, amortization and rental expenses totaled NT$1,171
million for the quarter.
-- Gross margin increased by 0.9 percentage points to 9.3% in 1Q24 from
8.4% in 4Q23.
-- Operating margin was 2.8% in 1Q24, compared to 3.5% in 4Q23.
LIQUIdiTY AND CAPITAL RESOURCES
-- Capital expenditures in 1Q24 totaled US$228 million, of which US$109
million was used in packaging operations, US$97 million in testing
operations, US$21 million in EMS operations and US$1 million in
interconnect materials operations and others.
-- Total unused credit lines amounted to NT$393,886 million as of March 31,
2024.
-- Current ratio was 1.19 and net debt to equity ratio was 0.36 as of March
31, 2024.
-- Total number of employees was 91,568 as of March 31, 2024, compared to
92,894 as of December 31, 2023.
Business Review
Customers
ATM Basis
-- Our five largest customers together accounted for approximately 46% of
our total net revenues in 1Q24, compared to 44% in 4Q23. Two customers
each accounted for more than 10% of our total net revenues in 1Q24
individually.
-- Our top 10 customers contributed 61% of our total net revenues in 1Q24,
compared to 58% in 4Q23.
-- Our customers that are integrated device manufacturers or IDMs accounted
for 30% of our total net revenues in both 1Q24 and 4Q23.
EMS Basis
-- Our five largest customers together accounted for approximately 67% of
our total net revenues in 1Q24, compared to 72% in 4Q23. One customer
accounted for more than 10% of our total net revenues in 1Q24.
-- Our top 10 customers contributed 75% of our total net revenues in 1Q24,
compared to 79% in 4Q23.
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.
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. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. 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. The announced results of the first quarter of 2024 are preliminary and subject to audit adjustments. 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 2023 Annual Report on Form 20-F filed on April 3, 2024.
Supplemental Financial Information
(Unaudited)
Consolidated Operations
1Q24 4Q23 1Q23
EBITDA (NT$ million) 23,974 28,606 23,765
ATM Operations
1Q24 4Q23 1Q23
Net Revenues (NT$ million) 73,908 82,004 73,319
Revenues by Application
Communication 52 % 53 % 50 %
Computing 18 % 17 % 17 %
Automotive, Consumer & Others 30 % 30 % 33 %
Revenues by Type
Bumping, Flip Chip, WLP & SiP 43 % 44 % 41 %
Wirebonding 30 % 30 % 34 %
Others 9 % 8 % 8 %
Testing 16 % 16 % 16 %
Material 2 % 2 % 1 %
Capacity &
EBITDA
CapEx (US$ million)* 206 213 197
EBITDA (NT$ million) 20,422 23,787 20,552
Number of Wirebonders 25,406 25,860 25,799
Number of Testers 5,611 5,556 5,447
EMS Operations
1Q24 4Q23 1Q23
Net Revenues (NT$ million) 59,365 79,182 57,733
Revenues by Application
Communication 34 % 40 % 35 %
Computing 12 % 11 % 8 %
Consumer 27 % 28 % 29 %
Industrial 12 % 11 % 17 %
Automotive 12 % 8 % 9 %
Others 3 % 2 % 2 %
Capacity
CapEx (US$ million)* 21 21 32
* Capital expenditure excludes building construction costs.
For the three months ended
Mar. 31 Dec. 31 Mar. 31
2024 2023 2023
Net revenues
Packaging 59,458 66,221 60,029
Testing 12,102 13,363 11,407
EMS 59,326 79,155 57,731
Others 1,917 1,842 1,724
Total net revenues 132,803 160,581 130,891
Cost of revenues (111,935) (134,820) (111,552)
Gross profit 20,868 25,761 19,339
Operating expenses
Research and development (6,609) (6,950) (5,572)
Selling, general and administrative (6,734) (6,996) (6,072)
Total operating expenses (13,343) (13,946) (11,644)
Operating income 7,525 11,815 7,695
Net non-operating income and expenses
Interest expense - net (1,107) (1,302) (1,076)
Foreign exchange gain (loss) (3,219) 3,731 545
Gain (loss) on valuation of financial assets and liabilities 4,098 (2,977) 103
Gain (loss) on equity-method investments - net 57 155 (12)
Others 506 945 615
Total non-operating income and expenses 335 552 175
Income before tax 7,860 12,367 7,870
Income tax expense (1,904) (2,461) (1,777)
Income from operations and before non-controlling interests 5,956 6,093
9,906
Non-controlling interests (274) (514) (276)
Net income attributable to shareholders of the parent 5,682 9,392 5,817
Per share data:
Earnings per share
- Basic NT$1.32 NT$2.18 NT$1.36
- Diluted NT$1.28 NT$2.13 NT$1.30
Earnings per equivalent ADS
- Basic US$0.084 US$0.137 US$0.089
- Diluted US$0.082 US$0.133 US$0.086
Number of weighted average shares used in diluted EPS calculation ( in thousand shares) 4,368,340 4,351,271 4,336,965
FX (NTD/USD) 31.30 31.92 30.40
For the three months ended
Mar. 31 Dec. 31 Mar. 31
2024 2023 2023
Net revenues:
Packaging 60,388 67,378 60,770
Testing 12,102 13,363 11,407
Direct Material 1,338 1,205 1,106
Others 80 58 36
Total net revenues 73,908 82,004 73,319
Cost of revenues (58,351) (62,786) (58,570)
Gross profit 15,557 19,218 14,749
Operating expenses:
Research and development (5,135) (5,425) (4,269)
Selling, general and administrative (4,345) (4,581) (4,071)
Total operating expenses (9,480) (10,006) (8,340)
Operating income 6,077 9,212 6,409
For the three months ended
Mar. 31 Dec. 31 Mar. 31
2024 2023 2023
Net revenues 59,365 79,182 57,733
Cost of revenues (53,866) (72,496) (53,166)
Gross profit 5,499 6,686 4,567
Operating expenses:
Research and development (1,533) (1,567) (1,324)
Selling, general and administrative (2,309) (2,320) (1,918)
Total operating expenses (3,842) (3,887) (3,242)
Operating income 1,657 2,799 1,325
As of Mar. 31, As of Dec. 31,
2024 2023
Current assets
Cash and cash equivalents 75,105 67,284
Financial assets - current 8,410 4,683
Trade receivables 97,264 99,529
Inventories 63,259 63,275
Others 28,964 26,576
Total current assets 273,002 261,347
Financial assets - non-current & Investments - equity -method 30,776 29,698
Property, plant and equipment 265,592 264,812
Right-of-use assets 11,534 11,442
Intangible assets 68,986 69,569
Others 31,580 29,707
Total assets 681,470 666,575
Current liabilities
Short-term borrowings[2] 56,863 53,042
Current portion of bonds payable
&
Current portion of long-term borrowings 14,075 28,616
Trade payables 66,454 70,329
Others 91,651 70,361
Total current liabilities 229,043 222,348
Bonds payable 31,618 20,489
Long-term borrowings 84,589 81,365
Other liabilities 24,051 24,263
Total liabilities 369,301 348,465
Equity attributable to
shareholders of the parent 290,996 297,826
Non-controlling interests 21,173 20,284
Total liabilities & shareholders' equity 681,470 666,575
Current ratio 1.19 1.18
Net debt to equity ratio 0.36 0.38
For the three months ended
Mar. 31 Dec.
31 Mar. 31
2024 2023 2023
Cash Flows from Operating Activities:
Income before tax 7,860 12,367 7,870
Depreciation & amortization 14,586 14,607 14,439
Other operating activities items (5,752) 19,854 8,449
Net cash generated from operating activities 16,694 46,828 30,758
Cash Flows from Investing Activities:
Net payments for property, plant and equipment (12,513) (11,859) (15,206)
Other investment activities items (2,995) 582 415
Net cash used in investing activities (15,508) (11,277) (14,791)
Cash Flows from Financing Activities:
Net repayment of loans (139) (24,441) (11,621)
Other financing activities items (33) 534 116
Net cash used in financing activities (172) (23,907) (11,505)
Foreign currency exchange effect 6,807 (7,433) (446)
Net increase in cash and cash equivalents 7,821 4,211 4,016
Cash and cash equivalents at the beginning of period 67,284 62,812 58,040
Cash and cash equivalents at the end of period 75,105 67,023 62,056
Cash and cash equivalents
in the consolidated balance sheet 75,105 67,284 62,056
Cash and cash equivalents included in disposal groups held for sale (261)
[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.
[2] Short-term borrowings include short-term loans and bills payable.
Investor Relations Contact
ir@aseglobal.com
Tel: +886.2.6636.5678
https://www.aseglobal.com
View original content:https://www.prnewswire.com/news-releases/ase-technology-holding-co-ltd-reports-its-unaudited-consolidated-financial-results-for-the-first-quarter-of-2024-302126939.html
SOURCE ASE Technology Holding Co., Ltd.
