ASE Technology Holding Co., Ltd. Reports Its Unaudited Consolidated Financial Results for the Second Quarter of 2024
TAIPEI, July 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$140,238 million for 2Q24, up by 2.9% year-over-year and up by 5.6% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$7,783 million, up from NT$7,740 million in 2Q23 and up from NT$5,682 million in 1Q24. Basic earnings per share for the quarter were NT$1.80 (or US$0.112 per ADS), compared to NT$1.80 for 2Q23 and NT$1.32 for 1Q24. Diluted earnings per share for the quarter were NT$1.75 (or US$0.109 per ADS), compared to NT$1.76 for 2Q23 and NT$1.28 for 1Q24.
RESULTS OF OPERATIONS
2Q24 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$117,172 million for the quarter, up from
NT$111,935 million in 1Q24.
-- Raw material cost totaled NT$70,387million for the quarter,
representing 50% of the total net revenues.
-- Labor cost totaled NT$15,673 million for the quarter, representing
11% of the total net revenues.
-- Depreciation, amortization and rental expenses totaled NT$13,406
million for the quarter.
-- Gross margin increased by 0.7 percentage points to 16.4% in 2Q24 from
15.7% in 1Q24.
-- Operating margin was 6.4% in 2Q24, compared to 5.7% in 1Q24.
-- In terms of non-operating items:
-- Net interest expense was NT$1,158 million.
-- Net foreign exchange loss was NT$1,420 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$2,664 million.
-- Net gain on equity-method investments was NT$459 million.
-- Other net non-operating income was NT$551 million, primarily
attributable to miscellaneous income.Total non-operating income and
expenses for the quarter was NT$1,096 million.
-- Income before tax was NT$10,117 million in 2Q24, compared to NT$7,860
million in 1Q24. We recorded income tax expenses of NT$1,952 million for
the quarter, compared to NT$1,904 million in 1Q24.
-- Net income attributable to shareholders of the parent was NT$7,783
million in 2Q24, compared to NT$7,740 million in 2Q23 and NT$5,682
million in 1Q24.
-- Our total number of shares outstanding at the end of the quarter was
4,390,178,137, including treasury stock owned by our subsidiaries in
2Q24. Our 2Q24 basic earnings per share of NT$1.80 (or US$0.112 per ADS)
were based on 4,317,151,632 weighted average numbers of shares
outstanding in 2Q24. Our 2Q24 diluted earnings per share of NT$1.75 (or
US$0.109 per ADS) were based on 4,383,324,817 weighted average number of
shares outstanding in 2Q24.
2Q24 Results Highlights - ATM
-- Net revenues were NT$77,813 million for the quarter, up by 2.2%
year-over-year and up by 5.3% sequentially.
-- Cost of revenues was NT$60,612 million for the quarter, up by 1.1%
year-over-year and up by 3.9% sequentially.
-- Raw material cost totaled NT$21,236 million for the quarter,
representing 27% of the total net revenues.
-- Labor cost totaled NT$12,437 million for the quarter, representing
16% of the total net revenues.
-- Depreciation, amortization and rental expenses totaled NT$11,934
million for the quarter.
-- Gross margin increased by 1.1 percentage points to 22.1% in 2Q24 from
21.0% in 1Q24.
-- Operating margin was 9.3% in 2Q24, compared to 8.2% in 1Q24.
2Q24 Results Highlights - EMS
-- Net revenues were NT$62,907 million, up by 4.1% year-over-year and up by
6.0% sequentially.
-- Cost of revenues for the quarter was NT$56,870 million, up by 3.8%
year-over-year and up by 5.6% sequentially.
-- Raw material cost totaled NT$49,075 million for the quarter,
representing 78% of the total net revenues.
-- Labor cost totaled NT$3,121 million for the quarter, representing 5%
of the total net revenues.
-- Depreciation, amortization and rental expenses totaled NT$1,204
million for the quarter.
-- Gross margin increased by 0.3 percentage points to 9.6% in 2Q24 from
9.3% in 1Q24.
-- Operating margin was 3.1% in 2Q24, compared to 2.8% in 1Q24.
LIQUIdiTY AND CAPITAL RESOURCES
-- Capital expenditures in 2Q24 totaled US$406 million, of which US$215
million was used in packaging operations, US$154 million in testing
operations, US$31 million in EMS operations and US$6 million in
interconnect materials operations and others.
-- Total unused credit lines amounted to NT$416,979 million as of June 30,
2024.
-- Current ratio was 1.17 and net debt to equity ratio was 0.34 as of June
30, 2024.
-- Total number of employees was 92,243 as of June 30, 2024, compared to
91,568 as of March 31, 2024.
Business Review
Customers
ATM Basis
-- Our five largest customers together accounted for approximately 45% of
our total net revenues in 2Q24, compared to 46% in 1Q24. Two customers
each accounted for more than 10% of our total net revenues in 2Q24
individually.
-- Our top 10 customers contributed 60% of our total net revenues in 2Q24,
compared to 61% in 1Q24.
-- Our customers that are integrated device manufacturers or IDMs accounted
for 30% of our total net revenues in both 2Q24 and 1Q24.
EMS Basis
-- Our five largest customers together accounted for approximately 67% of
our total net revenues in both 2Q24 and 1Q24. One customer accounted for
more than 10% of our total net revenues in 2Q24.
-- Our top 10 customers contributed 74% of our total net revenues in 2Q24,
compared to 75% in 1Q24.
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. 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. 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
2Q24 1Q24 2Q23
EBITDA[2] (NT$ million) 26,127 23,974 25,770
ATM Operations
2Q24 1Q24 2Q23
Net Revenues (NT$ million) 77,813 73,908 76,108
Revenues by Application
Communication 49 % 52 % 48 %
Computing 19 % 18 % 19 %
Automotive, Consumer & Others 32 % 30 % 33 %
Revenues by Type
Bumping, Flip Chip, WLP & SiP 44 % 43 % 41 %
Wirebonding 31 % 30 % 34 %
Others 7 % 9 % 7 %
Testing 16 % 16 % 16 %
Material 2 % 2 % 2 %
Capacity & EBITDA[2]
CapEx (US$ million)[3] 374 206 176
EBITDA (NT$ million)[2] 22,205 20,422 21,643
Number of Wirebonders 25,154 25,406 25,880
Number of Testers 5,676 5,611 5,495
EMS Operations
2Q24 1Q24 2Q23
Net Revenues (NT$ million) 62,907 59,365 60,424
Revenues by Application
Communication 33 % 34 % 34 %
Computing 11 % 12 % 8 %
Consumer 29 % 27 % 33 %
Industrial 13 % 12 % 15 %
Automotive 11 % 12 % 8 %
Others 3 % 3 % 2 %
Capacity
CapEx (US$ million)[3] 31 21 33
ASE Technology Holding Co., Ltd.
Summary of Consolidated Statement of Income Data
(In NT$ million, except per share data)
(Unaudited)
For the three months ended For the six months
ended
Jun. 30 Mar. 31 Jun. 30 Jun. 30 Jun. 30
2024 2024 2023 2024 2023
Net revenues
Packaging 62,834 59,458 61,846 122,292 121,875
Testing 12,623 12,102 12,292 24,725 23,699
EMS 62,853 59,326 60,384 122,179 118,115
Others 1,928 1,917 1,753 3,845 3,477
Total net revenues 140,238 132,803 136,275 273,041 267,166
Cost of revenues (117,172) (111,935) (114,534) (229,107) (226,086)
Gross profit 23,066 20,868 21,741 43,934 41,080
Operating expenses
Research and development (7,106) (6,609) (6,218) (13,715) (11,790)
Selling, general and administrative (6,939) (6,734) (6,111) (13,673) (12,183)
Total operating expenses (14,045) (13,343) (12,329) (27,388) (23,973)
Operating income 9,021 7,525 9,412 16,546 17,107
Net non-operating income and expenses
Interest expense - net (1,158) (1,107) (1,100) (2,265) (2,176)
Foreign exchange loss - net (1,420) (3,219) (1,188) (4,639) (643)
Gain on valuation of financial assets and liabilities - net 2,664 4,098 1,914 6,762 2,017
Gain on equity-method investments - net 459 57 326 516 314
Others - net 551 506 747 1,057 1,362
Total non-operating income and expenses 1,096 335 699 1,431 874
Income before tax 10,117 7,860 10,111 17,977 17,981
Income tax expense (1,952) (1,904) (1,914) (3,856) (3,691)
Income from operations and before non-controlling interests 8,165 5,956 8,197 14,121 14,290
Non-controlling interests (382) (274) (457) (656) (733)
Net income attributable to shareholders of the parent 7,783 5,682 7,740 13,465 13,557
Per share data:
Earnings per share
- Basic NT$1.80 NT$1.32 NT$1.80 NT$3.12 NT$3.16
- Diluted NT$1.75 NT$1.28 NT$1.76 NT$3.02 NT$3.07
Earnings per equivalent ADS
- Basic US$0.112 US$0.084 US$0.118 US$0.196 US$0.207
- Diluted US$0.109 US$0.082 US$0.115 US$0.190 US$0.202
Number of weighted average shares used in diluted EPS calculation ( in thousand shares) 4,383,325 4,368,340 4,342,948 4,376,301 4,341,706
FX (NTD/USD) 32.23 31.30 30.57 31.77 30.49
ASE Technology Holding Co., Ltd.
Summary of ATM Statement of Income Data
(In NT$ million)
(Unaudited)
For the three months ended For the six months
ended
Jun. 30 Mar. 31 Jun. 30 Jun. 30 Jun. 30
2024 2024 2023 2024 2023
Net revenues:
Packaging 63,838 60,388 62,607 124,226 123,377
Testing 12,623 12,102 12,292 24,725 23,699
Direct Material 1,264 1,338 1,165 2,602 2,271
Others 88 80 44 168 80
Total net revenues 77,813 73,908 76,108 151,721 149,427
Cost of revenues (60,612) (58,351) (59,947) (118,963) (118,517)
Gross profit 17,201 15,557 16,161 32,758 30,910
Operating expenses:
Research and development (5,483) (5,135) (4,748) (10,618) (9,017)
Selling, general and administrative (4,464) (4,345) (4,008) (8,809) (8,079)
Total operating expenses (9,947) (9,480) (8,756) (19,427) (17,096)
Operating income 7,254 6,077 7,405 13,331 13,814
ASE Technology Holding Co., Ltd.
Summary of EMS Statement of Income Data
(In NT$ million)
(Unaudited)
For the three months ended For the six months
ended
Jun. 30 Mar. 31 Jun. 30 Jun. 30 Jun. 30
2024 2024 2023 2024 2023
Net revenues
Total net revenues 62,907 59,365 60,424 122,272 118,157
Cost of revenues (56,870) (53,866) (54,785) (110,736) (107,951)
Gross profit 6,037 5,499 5,639 11,536 10,206
Operating expenses
Research and development (1,668) (1,533) (1,527) (3,201) (2,851)
Selling, general and administrative (2,414) (2,309) (2,023) (4,723) (3,941)
Total operating expenses (4,082) (3,842) (3,550) (7,924) (6,792)
Operating income 1,955 1,657 2,089 3,612 3,414
ASE Technology Holding Co., Ltd.
Summary of Consolidated Balance Sheet Data
(In NT$ million)
(Unaudited)
As of Jun. 30, As of Mar. 31,
2024 2024
Current assets
Cash and cash equivalents 66,173 75,105
Financial assets - current 9,162 8,410
Trade receivables 102,354 97,264
Inventories 63,488 63,259
Others 29,148 28,964
Total current assets 270,325 273,002
Financial assets - non-current & Investments - equity -method 30,887 30,776
Property, plant and equipment 271,835 265,592
Right-of-use assets 11,292 11,534
Intangible assets 68,300 68,986
Others 30,291 31,580
Total assets 682,930 681,470
Current liabilities
Short-term borrowings[4] 51,065 56,863
Current portion of bonds payable & Current portion of long-term borrowings 18,655 14,075
Trade payables 70,906 66,454
Others 89,494 91,651
Total current liabilities 230,120 229,043
Bonds payable 21,976 31,618
Long-term borrowings 84,414 84,589
Other liabilities 22,950 24,051
Total liabilities 359,460 369,301
Equity attributable to shareholders of the parent 302,348 290,996
Non-controlling interests 21,122 21,173
Total liabilities & shareholders' equity 682,930 681,470
Current ratio 1.17 1.19
Net debt to equity ratio 0.34 0.36
ASE Technology Holding Co., Ltd.
Summary of Consolidated Statement of Cash Flow Data
(In NT$ million)
(Unaudited)
For the three months ended For the six months
ended
Jun. 30 Mar. 31 Jun. 30 Jun. 30 Jun. 30
2024 2024 2023 2024 2023
Cash Flows from Operating Activities:
Profit before income tax 10,117 7,860 10,111 17,977 17,981
Depreciation & amortization 14,801 14,586 14,488 29,387 28,927
Other operating activities items (8,132) (5,752) (8,643) (13,884) (194)
Net cash generated from operating activities 16,786 16,694 15,956 33,480 46,714
Cash Flows from Investing Activities:
Net payments for property, plant and equipment (14,786) (12,513) (12,146) (27,299) (27,353)
Other investment activities items 304 (2,995) (2,285) (2,691) (1,870)
Net cash used in investing activities (14,482) (15,508) (14,431) (29,990) (29,223)
Cash Flows from Financing Activities:
Total net repayment of borrowings (12,322) (139) (3,395) (12,461) (15,016)
Other financing activities items (1,093) (33) (1,056) (1,126) (939)
Net cash used in financing activities (13,415) (172) (4,451) (13,587) (15,955)
Foreign currency exchange effect 2,179 6,807 481 8,986 35
Net increase (decrease) in cash and cash equivalents (8,932) 7,821 (2,445) (1,111) 1,571
Cash and cash equivalents at the beginning of period 75,105 67,284 62,056 67,284 58,040
Cash and cash equivalents at the end of period 66,173 75,105 59,611 66,173 59,611
Cash and cash equivalents in the consolidated balance sheet 66,173 75,105 59,351 66,173 59,351
Cash and cash equivalents included in disposal groups held for sale 260 260
[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] EBITDA stands for net income or loss before interest, taxes, depreciation, amortization, impairment and investment gain or loss as well as other items.
[3] Capital expenditure excludes building construction costs.
[4] 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
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