ASE Technology Holding Co., Ltd. Reports Its Unaudited Consolidated Financial Results for the Third Quarter of 2024
TAIPEI, Oct. 31, 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$160,105 million for 3Q24, up by 3.9% year-over-year and up by 14.2% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT9,666 million, up from NT$8,776 million in 3Q23 and up from NT$7,778 million in 2Q24. Basic earnings per share for the quarter were NT$2.24 (or US$0.138 per ADS), compared to NT$2.04 for 3Q23 and NT$1.80 for 2Q24. Diluted earnings per share for the quarter were NT$2.17 (or US$0.134 per ADS), compared to NT$2.00 for 3Q23 and NT$1.75 for 2Q24.
As of September 30, 2024, we have completed the PPA and have retrospectively adjusted the consolidated financial results for prior period.
RESULTS OF OPERATIONS
3Q24 Results Highlights - Consolidated
-- Net revenues from packaging operations, testing operations, EMS
operations, and others represented approximately 43%, 9%, 47%, and 1% of
the total net revenues for the quarter, respectively.
-- Cost of revenues was NT$133,673 million for the quarter, up from
NT$117,184 million in 2Q24.
-- Raw material cost totaled NT$84,658 million for the quarter,
representing 53% of the total net revenues.
-- Labor cost totaled NT$16,468 million for the quarter, representing
10% of the total net revenues.
-- Depreciation, amortization and rental expenses totaled NT$13,647
million for the quarter.
-- Gross margin increased by 0.1 percentage points to 16.5% in 3Q24 from
16.4% in 2Q24.
-- Operating margin was 7.2% in 3Q24, compared to 6.4% in 2Q24.
-- In terms of non-operating items:
-- Net interest expense was NT$1,291 million.
-- Net foreign exchange gain was NT$1,890 million, primarily
attributable to the depreciation of the U.S. dollar against the New
Taiwan dollar.
-- Net loss on valuation of financial assets and liabilities was NT$943
million.
-- Net gain on equity-method investments was NT$485 million.
-- Other net non-operating income was NT$643 million, primarily
attributable to miscellaneous income.Total non-operating income and
expenses for the quarter was NT$784 million.
-- Income before tax was NT$12,260 million in 3Q24, compared to NT$10,105
million in 2Q24. We recorded income tax expenses of NT$2,054 million for
the quarter, compared to NT$1,950 million in 2Q24.
-- Net income attributable to shareholders of the parent was NT$9,666
million in 3Q24, compared to NT$8,776 million in 3Q23 and NT$7,778
million in 2Q24.
-- Our total number of shares outstanding at the end of the quarter was
4,412,064,337, including treasury stock owned by our subsidiaries in
3Q24. Our 3Q24 basic earnings per share of NT$2.24 (or US$0.138 per ADS)
were based on 4,321,735,473 weighted average numbers of shares
outstanding in 3Q24. Our 3Q24 diluted earnings per share of NT$2.17 (or
US$0.134 per ADS) were based on 4,391,466,234 weighted average number of
shares outstanding in 3Q24.
3Q24 Results Highlights - ATM
-- Net revenues were NT$85,790 million for the quarter, up by 2.5%
year-over-year and up by 10.3% sequentially.
-- Cost of revenues was NT$65,989 million for the quarter, up by 1.4%
year-over-year and up by 8.9% sequentially.
-- Raw material cost totaled NT$24,177 million for the quarter,
representing 28% of the total net revenues.
-- Labor cost totaled NT$13,309 million for the quarter, representing
16% of the total net revenues.
-- Depreciation, amortization and rental expenses totaled NT$12,163
million for the quarter.
-- Gross margin increased by 1.0 percentage points to 23.1% in 3Q24 from
22.1% in 2Q24.
-- Operating margin was 10.8% in 3Q24, compared to 9.3% in 2Q24.
3Q24 Results Highlights - EMS
-- Net revenues were NT$75,384 million, up by 6.2% year-over-year and up by
19.8% sequentially.
-- Cost of revenues for the quarter was NT$68,627 million, up by 6.4%
year-over-year and up by 20.6% sequentially.
-- Raw material cost totaled NT$60,912 million for the quarter,
representing 81% of the total net revenues.
-- Labor cost totaled NT$3,051 million for the quarter, representing 4%
of the total net revenues.
-- Depreciation, amortization and rental expenses totaled NT$1,219
million for the quarter.
-- Gross margin decreased by 0.6 percentage points to 9.0% in 3Q24 from
9.6% in 2Q24.
-- Operating margin was 3.3% in 3Q24, compared to 3.1% in 2Q24.
LIQUIDITY AND CAPITAL RESOURCES
-- Capital expenditures in 3Q24 totaled US$603 million, of which US$312
million was used in packaging operations, US$274 million in testing
operations, US$14 million in EMS operations and US$3 million in
interconnect materials operations and others.
-- Total unused credit lines amounted to NT$361,264 million as of September
30, 2024.
-- Current ratio was 1.18 and net debt to equity ratio was 0.41 as of
September 30, 2024.
-- Total number of employees was 94,456 as of September 30, 2024, compared
to 92,243 as of June 30, 2024.
BUSINESS REVIEW
Customers
ATM BASIS
-- Our five largest customers together accounted for approximately 46% of
our total net revenues in 3Q24, compared to 45% in 2Q24. One customer
accounted for more than 10% of our total net revenues in 3Q24.
-- Our top 10 customers contributed 61% of our total net revenues in 3Q24,
compared to 60% in 2Q24.
-- Our customers that are integrated device manufacturers or IDMs accounted
for 31% of our total net revenues in 3Q24, compared to 30% in 2Q24.
EMS BASIS
-- Our five largest customers together accounted for approximately 72% of
our total net revenues in 3Q24, compared to 67% in 2Q24. One customer
accounted for more than 10% of our total net revenues in 3Q24.
-- Our top 10 customers contributed 78% of our total net revenues in 3Q24,
compared to 74% in 2Q24.
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, Philippines, 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
3Q24 2Q24 3Q23
EBITDA[2] (NT$ million) 28,621 26,127 27,822
ATM Operations
3Q24 2Q24 3Q23
Net Revenues (NT$ million) 85,790 77,813 83,684
Revenues by Application
Communication 50 % 49 % 52 %
Computing 18 % 19 % 19 %
Automotive, Consumer & Others 32 % 32 % 29 %
Revenues by Type
Bumping, Flip Chip, WLP & SiP 45 % 44 % 44 %
Wirebonding 29 % 31 % 32 %
Others 8 % 7 % 8 %
Testing 16 % 16 % 15 %
Material 2 % 2 % 1 %
Capacity & EBITDA
CapEx[3] (US$ million) 588 374 210
EBITDA[2] (NT$ million) 24,186 22,205 23,117
Number of Wirebonders 25,373 25,154 26,215
Number of Testers 5,966 5,676 5,510
EMS Operations
3Q24 2Q24 3Q23
Net Revenues (NT$ million) 75,384 62,907 70,970
Revenues by Application
Communication 34 % 33 % 34 %
Computing 9 % 11 % 8 %
Consumer 36 % 29 % 37 %
Industrial 11 % 13 % 12 %
Automotive 9 % 11 % 7 %
Others 1 % 3 % 2 %
Capacity
CapEx[3] (US$ million) 14 31 28
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 nine months
ended
Sep. 30 Jun. 30 2024 Sep. 30 Sep. 30 Sep. 30
2024 (Retrospectively
Adjusted) 2023 2024 2023
Net revenues
Packaging 69,154 62,834 68,709 191,447 190,584
Testing 14,124 12,623 12,819 38,848 36,518
EMS 74,871 62,853 70,948 197,050 189,063
Others 1,956 1,928 1,691 5,801 5,168
Total net revenues 160,105 140,238 154,167 433,146 421,333
Cost of revenues (133,673) (117,184) (129,251) (362,839) (355,337)
Gross profit 26,432 23,054 24,916 70,307 65,996
Operating expenses
Research and development (7,439) (7,106) (6,759) (21,154) (18,549)
Selling, general and administrative (7,517) (6,939) (6,752) (21,191) (18,934)
Total operating expenses (14,956) (14,045) (13,511) (42,345) (37,483)
Operating income 11,476 9,009 11,405 27,962 28,513
Net non-operating income and expenses
Interest expense - net (1,291) (1,158) (1,247) (3,557) (3,424)
Foreign exchange gain (loss) - net 1,890 (1,420) (2,090) (2,748) (2,733)
Gain (Loss) on valuation of financial assets and liabilities - net (943) 2,664 2,820 5,819 4,837
Gain on equity-method investments - net 485 459 656 1,001 970
Others - net 643 551 708 1,700 2,070
Total non-operating income and expenses 784 1,096 847 2,215 1,720
Income before tax 12,260 10,105 12,252 30,177 30,233
Income tax expense (2,054) (1,950) (2,890) (5,897) (6,582)
Income from operations and before non-controlling interests 10,206 8,155 9,362 24,280 23,651
Non-controlling interests (540) (377) (586) (1,176) (1,318)
Net income attributable to shareholders of the parent 9,666 7,778 8,776 23,104 22,333
Per share data:
Earnings per share
- Basic NT$2.24
NT$1.80 NT$2.04 NT$5.35 NT$5.20
- Diluted NT$2.17
NT$1.75 NT$2.00 NT$5.17 NT$5.05
Earnings per equivalent ADS
- Basic US$0.138
US$0.112 US$0.130 US$0.335 US$0.338
- Diluted US$0.134
US$0.109 US$0.127 US$0.324 US$0.328
Number of weighted average shares used in diluted EPS calculation ( in thousand shares) 4,391,465 4,383,325 4,347,752 4,385,913 4,346,129
FX (NTD/USD) 32.31 32.23 31.45 31.95 30.81
ASE Technology Holding Co., Ltd.
Summary of ATM Statement of Income Data
(In NT$ million)
(Unaudited)
For the three months ended For the nine months
ended
Sep. 30 Jun. 30 Sep. 30 Sep. 30 Sep. 30
2024 2024 2023 2024 2023
Net revenues:
Packaging 70,290 63,838 69,731 194,516 193,108
Testing 14,124 12,623 12,819 38,848 36,518
Direct Material 1,295 1,264 1,098 3,898 3,369
Others 81 88 36 250 116
Total net revenues 85,790 77,813 83,684 237,512 233,111
Cost of revenues (65,989) (60,612) (65,094) (184,952) (183,611)
Gross profit 19,801 17,201 18,590 52,560 49,500
Operating expenses:
Research and development (5,773) (5,483) (5,344) (16,392) (14,361)
Selling, general and administrative (4,803) (4,464) (4,426) (13,612) (12,505)
Total operating expenses (10,576) (9,947) (9,770) (30,004) (26,866)
Operating income 9,225 7,254 8,820 22,556 22,634
ASE Technology Holding Co., Ltd.
Summary of EMS Statement of Income Data
(In NT$ million)
(Unaudited)
For the three months ended For the nine months
ended
Sep. 30 Jun. 30 2024 Sep. 30 Sep. 30 Sep. 30
2024 (Retrospectively
Adjusted) 2023 2024 2023
Net revenues
Total net revenues 75,384 62,907 70,970 197,656 189,127
Cost of revenues (68,627) (56,882) (64,500) (179,422) (172,451)
Gross profit 6,757 6,025 6,470 18,234 16,676
Operating expenses
Research and development (1,668) (1,668) (1,453) (4,869) (4,304)
Selling, general and administrative (2,636) (2,415) (2,250) (7,360) (6,191)
Total operating expenses (4,304) (4,083) (3,703) (12,229) (10,495)
Operating income 2,453 1,942 2,767 6,005 6,181
ASE Technology Holding Co., Ltd.
Summary of Consolidated Balance Sheet Data
(In NT$ million)
(Unaudited)
As of Sep. 30,
2024 As of Jun. 30, 2024
(Retrospectively
Adjusted)
Current assets
Cash and cash equivalents 71,711 66,173
Financial assets - current 6,643 9,162
Trade receivables 114,061 102,361
Inventories 68,986 63,495
Others 17,364 29,144
Total current assets 278,765 270,335
Financial assets - non-current & Investments - equity -method 42,300 30,887
Property, plant and equipment 283,447 271,870
Right-of-use assets 11,499 11,292
Intangible assets 68,038 68,316
Others 30,510 30,291
Total assets 714,559 682,991
Current liabilities
Short-term borrowings[4] 56,726 51,065
Current portion of bonds payable & Current portion of long-term borrowings 23,531 18,655
Trade payables 82,595 70,906
Others 72,830 89,495
Total current liabilities 235,682 230,121
Bonds payable 17,073 21,976
Long-term borrowings 108,003 84,414
Other liabilities 22,748 23,053
Total liabilities 383,506 359,564
Equity attributable to shareholders of the parent 309,399 302,323
Non-controlling interests 21,654 21,104
Total liabilities & shareholders' equity 714,559 682,991
Current ratio 1.18 1.17
Net debt to equity ratio 0.41 0.34
ASE Technology Holding Co., Ltd.
Summary of Consolidated Statement of Cash Flow Data
(In NT$ million)
(Unaudited)
For the three months ended For the nine months
ended
Sep. 30 Jun. 30 2024 Sep. 30 Sep. 30 Sep. 30
2024 (Retrospectively
Adjusted) 2023 2024 2023
Cash Flows from Operating Activities
Profit before income tax 12,260 10,105 12,252 30,177 30,233
Depreciation & amortization 15,037 14,813 14,568 44,449 43,495
Other operating activities items (5,235) (8,132) (5,940) (19,083) (6,134)
Net cash generated from operating activities 22,062 16,786 20,880 55,543 67,594
Cash Flows from Investing Activities
Net payments for property, plant (19,769) (14,786) (14,471) (47,068) (41,824)
and equipment
Other investment activities items (2,593) 304 (151) (5,284) (2,021)
Net cash used in investing activities (22,362) (14,482) (14,622) (52,352) (43,845)
Cash Flows from Financing Activities
Total net proceeds from (repayment of) borrowings and bonds 30,909 (12,330) 28,640 18,439 13,624
Dividends paid (22,460) (37,841) (22,460) (37,841)
Other financing activities items (51) (1,093) (38) (1,177) (977)
Net cash generated from (used in) financing activities 8,398 (13,423) (9,239) (5,198) (25,194)
Foreign currency exchange effect (2,560) 2,187 6,443 6,434 6,478
Net increase (decrease) in cash 5,538 (8,932) 3,462 4,427 5,033
and cash equivalents
Cash and cash equivalents at the beginning of period 66,173 75,105 59,351 67,284 58,040
Cash and cash equivalents at the 71,711 66,173 62,813 71,711 63,073
end of period
Cash and cash equivalents in the consolidated balance sheet 71,711 66,173 62,812 71,711 62,812
Cash and cash equivalents included in disposal groups held for sale 1 261
[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] 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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