ASE Technology Holding Co., Ltd. Reports Its Unaudited Consolidated Financial Results for the Fourth Quarter and the Full Year of 2024
TAIPEI, Feb. 13, 2025 /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$162,264 million for 4Q24, up by 1.0% year-over-year and up by 1.3% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT9,312 million, down from NT$9,392 million in 4Q23 and down from NT$9,733 million in 3Q24. Basic earnings per share for the quarter were NT$2.15 (or US$0.134 per ADS), compared to NT$2.18 for 4Q23 and NT$2.25 for 3Q24. Diluted earnings per share for the quarter were NT$2.07 (or US$0.129 per ADS), compared to NT$2.13 for 4Q23 and NT$2.18 for 3Q24.
For the full year of 2024, the Company reported unaudited net revenues of NT$595,410 million and net income attributable to shareholders of the parent of NT$32,483 million. Basic earnings per share for the full year of 2024 were NT$7.52 (or US$0.470 per ADS). Diluted earnings per share for the full year of 2024 were NT$7.23 (or US$0.452 per ADS).
As of December 31, 2024, we have completed the purchase price allocation of business combination, and have retrospectively adjusted the consolidated financial results for the prior period.
RESULTS OF OPERATIONS
4Q24 Results Highlights - Consolidated
-- Net revenues from packaging operations, testing operations, EMS
operations, and others represented approximately 43%, 10%, 46%, and 1%
of the total net revenues for the quarter, respectively.
-- Cost of revenues was NT$135,633 million for the quarter, up from
NT$133,679 million in 3Q24.
-- Raw material cost totaled NT$84,434 million for the quarter,
representing 52% of the total net revenues.
-- Labor cost totaled NT$16,749 million for the quarter, representing
10% of the total net revenues.
-- Depreciation, amortization and rental expenses totaled NT$13,961
million for the quarter.
-- Gross margin decreased by 0.1 percentage points to 16.4% in 4Q24 from
16.5% in 3Q24.
-- Operating margin was 6.9% in 4Q24, compared to 7.2% in 3Q24.
-- In terms of non-operating items:
-- Net interest expense was NT$1,308 million.
-- Net foreign exchange loss was NT$2,787 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$4,017 million.
-- Net loss on equity-method investments was NT$133 million.
-- Other net non-operating income was NT$441 million, primarily
attributable to miscellaneous income.Total non-operating income and
expenses for the quarter was NT$230 million.
-- Income before tax was NT$11,441 million in 4Q24, compared to NT$12,325
million in 3Q24. We recorded income tax expenses of NT$1,862 million for
the quarter, compared to NT$2,052 million in 3Q24.
-- Net income attributable to shareholders of the parent was NT$9,312
million in 4Q24, compared to NT$9,392 million in 4Q23 and NT$9,733
million in 3Q24.
-- Our total number of shares outstanding at the end of the quarter was
4,414,930,537, including treasury stock owned by our subsidiaries in
4Q24. Our 4Q24 basic earnings per share of NT$2.15 (or US$0.134 per ADS)
were based on 4,324,469,567 weighted average numbers of shares
outstanding in 4Q24. Our 4Q24 diluted earnings per share of NT$2.07 (or
US$0.129 per ADS) were based on 4,399,408,735 weighted average number of
shares outstanding in 4Q24.
4Q24 Results Highlights - ATM
-- Net revenues were NT$88,363 million for the quarter, up by 7.8%
year-over-year and up by 3.0% sequentially.
-- Cost of revenues was NT$67,754 million for the quarter, up by 7.9%
year-over-year and up by 2.7% sequentially.
-- Raw material cost totaled NT$24,774 million for the quarter,
representing 28% of the total net revenues.
-- Labor cost totaled NT$13,661 million for the quarter, representing
15% of the total net revenues.
-- Depreciation, amortization and rental expenses totaled NT$12,508
million for the quarter.
-- Gross margin increased by 0.2 percentage points to 23.3% in 4Q24 from
23.1% in 3Q24.
-- Operating margin was 10.7% in both 4Q24 and 3Q24.
4Q24 Results Highlights - EMS
-- Net revenues were NT$74,895 million, down by 5.4% year-over-year and
down by 0.6% sequentially.
-- Cost of revenues for the quarter was NT$68,713 million, down by 5.2%
year-over-year and up by 0.1% sequentially.
-- Raw material cost totaled NT$60,178 million for the quarter,
representing 80% of the total net revenues.
-- Labor cost totaled NT$2,980 million for the quarter, representing 4%
of the total net revenues.
-- Depreciation, amortization and rental expenses totaled NT$1,191
million for the quarter.
-- Gross margin decreased by 0.7 percentage points to 8.3% in 4Q24 from
9.0% in 3Q24.
-- Operating margin was 2.7% in 4Q24, compared to 3.3% in 3Q24.
2024 Full-Year Results Highlights - Consolidated
-- Net revenues for the full year of 2024 amounted to NT$595,410 million,
up by 2.3% from the full year of 2023. Net revenues from packaging
operations, testing operations, EMS operations and others represented
approximately 44%, 9%, 46% and 1% of total net revenues for the year,
respectively.
-- Cost of revenue for the year of 2024 was NT$498,478 million, compared to
NT$490,157 million in 2023.
-- Raw material cost totaled NT$306,359 million for the year,
representing 51% of total net revenues.
-- Labor cost totaled NT$64,268 million for the year, representing 11%
of total net revenues.
-- Depreciation, amortization and rental expenses totaled NT$54,254
million for the year.
-- Gross margin increased by 0.5 percentage points to 16.3% in 2024 from
15.8% in 2023.
-- Operating margin decreased to 6.6% in 2024 from 6.9% in 2023.
-- Total non-operating income for the year was NT$2,517 million, compared
to NT$2,272 million in 2023.
-- Income before tax was NT$41,684 million in 2024. We recognized an income
tax expense of NT$7,758 million for the year.
-- Net income attributable to shareholders of the parent amounted to
NT$32,483 million in 2024, compared to NT$31,725 million in 2023.
-- Our 2024 basic earnings per share of NT$7.52 (or US$0.470 per ADS) were
based on 4,318,991,036 weighted average numbers of shares outstanding in
2024. Our 2024 diluted earnings per share of NT$7.23 (or US$0.452 per
ADS) were based on 4,392,013,361 weighted average number of shares
outstanding in 2024.
2024 Full-Year Results Highlights - ATM
-- Cost of revenues for the full year of 2024 was NT$252,712 million,
compared to NT$246,397 million in 2023.
-- Raw material cost totaled NT$90,307 million for the year,
representing 28% of total net revenues.
-- Labor cost totaled NT$51,652 million for the year, representing 16%
of total net revenues.
-- Depreciation, amortization and rental expenses totaled NT$48,392
million for the year.
-- Gross margin increased to 22.5% in 2024 from 21.8% in 2023.
-- Operating margin decreased to 9.8% in 2024 from 10.1% in 2023.
2024 Full-Year Results Highlights - EMS
-- Cost of revenues was NT$248,135 million in 2024, up by 1.3% from 2023.
-- Raw material cost totaled NT$216,864 million for the year,
representing 80% of total net revenues.
-- Labor cost totaled NT$12,161 million for the year, representing 4%
of total net revenues.
-- Depreciation, amortization and rental expenses totaled NT$4,808
million for the year.
-- Gross margin increased to 9.0% in 2024 from 8.7% in 2023.
-- Operating margin decreased to 2.9% in 2024 from 3.3% in 2023.
LIQUIdiTY AND CAPITAL RESOURCES
-- Capital expenditures in 4Q24 totaled US$640 million, of which US$321
million was used in packaging operations, US$290 million in testing
operations, US$24 million in EMS operations and US$5 million in
interconnect materials operations and others.
-- Capital expenditures in 2024 totaled US$1,876 million, of which US$957
million was used in packaging operations, US$815 million in testing
operations, US$89 million in EMS operations and US$15 million in
interconnect materials operations and others.
-- Total unused credit lines amounted to NT$375,734 million as of December
31, 2024.
-- Current ratio was 1.19 and net debt to equity ratio was 0.37 as of
December 31, 2024.
-- Total number of employees was 95,492 as of December 31, 2024, compared
to 94,456 as of September 30, 2024.
Business Review
Customers([2])
ATM Basis
-- Our five largest customers together accounted for approximately 44% of
our total net revenues in 4Q24, compared to 42% in 3Q24. Two customers
each accounted for more than 10% of our total net revenues in 4Q24
individually.
-- Our top 10 customers contributed 60% of our total net revenues in 4Q24,
compared to 58% in 3Q24.
-- Our customers that are integrated device manufacturers or IDMs accounted
for 32% of our total net revenues in 4Q24, compared to 34% in 3Q24.
EMS Basis
-- Our five largest customers together accounted for approximately 72% of
our total net revenues in 4Q24, compared to 71% in 3Q24. One customer
accounted for more than 10% of our total net revenues in 4Q24.
-- Our top 10 customers contributed 78% of our total net revenues in 4Q24,
compared to 77% in 3Q24.
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. The announced results of the full year 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
4Q24 3Q24 4Q23
EBITDA[3] (NT$ million) 28,797 28,692 28,606
ATM Operations
4Q24 3Q24 4Q23
Net Revenues (NT$ million) 88,363 85,790 82,004
Revenues by Application
Communication 53 % 50 % 53 %
Computing 17 % 18 % 17 %
Automotive, Consumer & Others 30 % 32 % 30 %
Revenues by Type
Bumping, Flip Chip, WLP & SiP 47 % 45 % 44 %
Wirebonding 27 % 29 % 30 %
Others 7 % 8 % 8 %
Testing 18 % 16 % 16 %
Material 1 % 2 % 2 %
Capacity & EBITDA
CapEx[4] (US$ million) 616 588 213
EBITDA[3] (NT$ million) 24,845 24,257 23,787
Number of Wirebonders 25,328 25,373 25,860
Number of Testers 6,300 5,966 5,556
EMS Operations
4Q24 3Q24 4Q23
Net Revenues (NT$ million) 74,895 75,384 79,182
Revenues by Application
Communication 37 % 34 % 40 %
Computing 9 % 9 % 11 %
Consumer 33 % 36 % 28 %
Industrial 11 % 11 % 11 %
Automotive 8 % 9 % 8 %
Others 2 % 1 % 2 %
Capacity
CapEx[4] (US$ million) 24 14 21
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 year ended
Dec. 31
Sep. 30 Dec. 31 Dec. 31 Dec. 31
2024 2024 2023 2024 2023
(Retrospectively
Adjusted)
Net revenues
Packaging 70,285 69,154 66,221 261,732 256,805
Testing 15,713 14,124 13,363 54,562 49,881
EMS 74,243 74,871 79,155 271,293 268,218
Others 2,023 1,956 1,842 7,823 7,010
Total net revenues 162,264 160,105 160,581 595,410 581,914
Cost of revenues (135,633) (133,679) (134,820) (498,478) (490,157)
Gross profit 26,631 26,426 25,761 96,932 91,757
Operating expenses
Research and development (7,676) (7,439) (6,950) (28,830) (25,499)
Selling, general and administrative (7,744) (7,517) (6,996) (28,935) (25,930)
Total operating expenses (15,420) (14,956) (13,946) (57,765) (51,429)
Operating income 11,211 11,470 11,815 39,167 40,328
Net non-operating income and expenses
Interest expense - net (1,308) (1,291) (1,302) (4,864) (4,726)
Foreign exchange gain (loss) - net (2,787) 1,887 3,731 (5,539) 998
Gain (Loss) on valuation of financial assets and liabilities - net 4,017 (946) (2,977) 9,833 1,860
Gain (Loss) on equity-method investments - net (133) 485 155 868 1,125
Others - net 441 720 945 2,219 3,015
Total non-operating income and expenses 230 855 552 2,517 2,272
Income before tax 11,441 12,325 12,367 41,684 42,600
Income tax expense (1,862) (2,052) (2,461) (7,758) (9,043)
Income from operations and before non-controlling interests 9,579 10,273 9,906 33,926 33,557
Non-controlling interests (267) (540) (514) (1,443) (1,832)
Net income attributable to shareholders of the parent 9,312 9,733 9,392 32,483 31,725
Per share data:
Earnings per share
- Basic NT$2.15
NT$2.25 NT$2.18 NT$7.52 NT$7.39
- Diluted NT$2.07
NT$2.18 NT$2.13 NT$7.23 NT$7.18
Earnings per equivalent ADS
- Basic US$0.134
US$0.139 US$0.137 US$0.470 US$0.475
- Diluted US$0.129
US$0.135 US$0.133 US$0.452 US$0.462
Number of weighted average shares used in diluted EPS calculation ( in thousand shares) 4,399,409 4,391,465 4,351,271 4,392,013 4,347,671
FX (NTD/USD) 32.16 32.31 31.92 32.00 31.09
ASE Technology Holding Co., Ltd.
Summary of ATM Statement of Income Data
(In NT$ million)
(Unaudited)
For the three months ended For the year ended
Dec. 31
Sep. 30 Dec. 31 Dec. 31 Dec. 31
2024 2024 2023 2024 2023
(Retrospectively
Adjusted)
Net revenues:
Packaging 71,342 70,290 67,378 265,858 260,486
Testing 15,713 14,124 13,363 54,562 49,881
Direct Material 1,233 1,295 1,205 5,130 4,574
Others 75 81 58 325 174
Total net revenues 88,363 85,790 82,004 325,875 315,115
Cost of revenues (67,754) (65,995) (62,786) (252,712) (246,397)
Gross profit 20,609 19,795 19,218 73,163 68,718
Operating expenses:
Research and development (6,047) (5,773) (5,425) (22,438) (19,786)
Selling, general and administrative (5,127) (4,803) (4,581) (18,739) (17,086)
Total operating expenses (11,174) (10,576) (10,006) (41,177) (36,872)
Operating income 9,435 9,219 9,212 31,986 31,846
ASE Technology Holding Co., Ltd.
Summary of EMS Statement of Income Data
(In NT$ million)
(Unaudited)
For the three months ended For the year ended
Dec. 31 Sep. 30 Dec. 31 Dec. 31 Dec. 31
2024 2024 2023 2024 2023
Net revenues
Total net revenues 74,895 75,384 79,182 272,550 268,309
Cost of revenues (68,713) (68,627) (72,496) (248,135) (244,947)
Gross profit 6,182 6,757 6,686 24,415 23,362
Operating expenses
Research and development (1,673) (1,668) (1,567) (6,542) (5,871)
Selling, general and administrative (2,523) (2,636) (2,320) (9,883) (8,511)
Total operating expenses (4,196) (4,304) (3,887) (16,425) (14,382)
Operating income 1,986 2,453 2,799 7,990 8,980
ASE Technology Holding Co., Ltd.
Summary of Consolidated Balance Sheet Data
(In NT$ million)
(Unaudited)
As of Dec. 31,
2024 As of Sep. 30, 2024
(Retrospectively
Adjusted)
Current assets
Cash and cash equivalents 76,493 71,711
Financial assets - current 9,376 6,643
Trade receivables 113,420 114,061
Inventories 61,181 68,991
Others 14,815 17,399
Total current assets 275,285 278,805
Financial assets - non-current & Investments - equity -method 41,810 42,300
Property, plant and equipment 312,531 283,886
Right-of-use assets 11,851 11,502
Intangible assets 67,562 67,639
Others 31,659 30,516
Total assets 740,698 714,648
Current liabilities
Short-term borrowings[5] 47,445 56,726
Current portion of bonds payable & Current portion of long-term borrowings 18,883 23,531
Trade payables 78,221 82,595
Others 86,391 72,698
Total current liabilities 230,940 235,550
Bonds payable 17,978 17,073
Long-term borrowings 121,750 108,003
Other liabilities 24,243 22,912
Total liabilities 394,911 383,538
Equity attributable to shareholders of the parent 323,523 309,456
Non-controlling interests 22,264 21,654
Total liabilities & shareholders' equity 740,698 714,648
Current ratio 1.19 1.18
Net debt to equity ratio 0.37 0.41
ASE Technology Holding Co., Ltd.
Summary of Consolidated Statement of Cash Flow Data
(In NT$ million)
(Unaudited)
For the three months ended For the year ended
Dec. 31
Sep. 30 Dec. 31 Dec. 31 Dec. 31
2024 2024 2023 2024 2023
(Retrospectively
Adjusted)
Cash Flows from Operating Activities
Income before tax 11,441 12,325 12,367 41,684 42,600
Depreciation & amortization 15,360 15,043 14,607 59,815 58,102
Other operating activities items 8,444 (5,306) 19,854 (10,711) 13,720
Net cash generated from operating activities 35,245 22,062 46,828 90,788 114,422
Cash Flows from Investing Activities
Net payments for property, plant (31,546) (19,769) (11,859) (78,614) (53,683)
and equipment
Other investment activities items (11) (2,593) 582 (5,294) (1,439)
Net cash used in investing activities (31,557) (22,362) (11,277) (83,908) (55,122)
Cash Flows from Financing Activities
Total net proceeds from (repayment of) borrowings and bonds (1,952) 30,909 (24,441) 16,487 (10,817)
Dividends paid (22,460) (22,460) (37,841)
Other financing activities items (121) (51) 534 (1,298) (443)
Net cash generated from (used in) financing activities (2,073) 8,398 (23,907) (7,271) (49,101)
Foreign currency exchange effect 3,167 (2,560) (7,433) 9,600 (955)
Net increase in cash and cash equivalents 4,782 5,538 4,211 9,209 9,244
Cash and cash equivalents at the beginning of period 71,711 66,173 62,812 67,284 58,040
Cash and cash equivalents at the 76,493 71,711 67,023 76,493 67,284
end of period
Cash and cash equivalents in the consolidated balance sheet 76,493 71,711 67,284 76,493 67,284
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] In the fourth quarter of 2024, we adjusted our calculation method of revenue sourcing to focus on direct customers rather than end customers. We believe this method better reflects our current business environment. Consequently, we have retrospectively adjusted our customer metrics for the third quarter of
2024.
[3] EBITDA stands for net income or loss before interest, taxes, depreciation, amortization, impairment and investment gain or loss as well as other items.
[4] Capital expenditure excludes building construction costs.
[5] 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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