U.S. markets closed
  • S&P Futures

    3,943.75
    -28.00 (-0.70%)
     
  • Dow Futures

    31,733.00
    -106.00 (-0.33%)
     
  • Nasdaq Futures

    11,875.00
    -160.25 (-1.33%)
     
  • Russell 2000 Futures

    1,784.70
    -7.10 (-0.40%)
     
  • Crude Oil

    109.39
    -0.90 (-0.82%)
     
  • Gold

    1,851.70
    +3.90 (+0.21%)
     
  • Silver

    21.89
    +0.16 (+0.75%)
     
  • EUR/USD

    1.0681
    -0.0015 (-0.14%)
     
  • 10-Yr Bond

    2.8590
    +0.0720 (+2.58%)
     
  • Vix

    28.48
    -0.95 (-3.23%)
     
  • GBP/USD

    1.2564
    -0.0024 (-0.19%)
     
  • USD/JPY

    127.6890
    -0.1990 (-0.16%)
     
  • BTC-USD

    29,204.39
    -1,138.66 (-3.75%)
     
  • CMC Crypto 200

    653.72
    -21.16 (-3.14%)
     
  • FTSE 100

    7,513.44
    +123.46 (+1.67%)
     
  • Nikkei 225

    27,001.52
    0.00 (0.00%)
     

ASE Technology Holding Co., Ltd. Reports Unaudited Consolidated Financial Results for the Third Quarter of 2021

  • Oops!
    Something went wrong.
    Please try again later.
·15 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

TAIPEI, Taiwan, R.O.C., Oct. 28, 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$150,665 million for 3Q21, up by 22% year-over-year and up by 19% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$14,176 million, up from a net income attributable to shareholders of the parent of NT$6,712 million in 3Q20 and up from a net income attributable to shareholders of the parent of NT$10,338 million in 2Q21. Basic earnings per share for the quarter were NT$3.29 (or US$0.236 per ADS), compared to NT$1.57 for 3Q20 and NT$2.40 for 2Q21. Diluted earnings per share for the quarter were NT$3.20 (or US$0.230 per ADS), compared to NT$1.54 for 3Q20 and NT$2.30 for 2Q21.

RESULTS OF OPERATIONS

3Q21 Results Highlights – Consolidated

  • Net revenue contribution from packaging operations, testing operations, EMS operations and others, each represented approximately 49%, 9%, 41% and 1%, respectively, of total net revenues for the quarter.

  • Cost of revenue was NT$119,881 million for the quarter, up from NT$102,122 million in 2Q21.

- Raw material cost totaled NT$73,552 million for the quarter, representing 49% of total net revenues.

- Labor cost totaled NT$16,955 million for the quarter, representing 11% of total net revenues.

- Depreciation, amortization and rental expenses totaled NT$12,710 million for the quarter.

  • Gross margin increased 0.9 percentage points to 20.4% in 3Q21 from 19.5% in 2Q21.

  • Operating margin was 12.2% in 3Q21, compared to 10.4% in 2Q21.

  • In terms of non-operating items:

- Net interest expense was NT$562 million.

- Net foreign exchange gain of NT$66 million was primarily attributable to the depreciation of U.S. dollar against New Taiwan dollar.

- Loss on valuation of financial assets and liabilities was NT$349 million.

- Net gain on equity-method investments was NT$414 million.

- Other net non-operating income of NT$479 million was primarily attributable to miscellaneous income. Total non-operating income for the quarter was NT$48 million.

  • Income before tax was NT$18,474 million for 3Q21, compared to NT$13,344 million in 2Q21. We recorded income tax expenses of NT$3,630 million for the quarter, compared to NT$2,648 million in 2Q21.

  • In 3Q21, net income attributable to shareholders of the parent was NT$14,176 million, compared to NT$6,712 million in 3Q20 and NT$10,338 million in 2Q21.

  • Our total number of shares outstanding at the end of the quarter was 4,388,414,582, including treasury stock owned by our subsidiaries. Our 3Q21 basic earnings per share of NT$3.29 (or US$0.236 per ADS) were based on 4,314,088,250 weighted average numbers of shares outstanding in 3Q21. Our 3Q21 diluted earnings per share of NT$3.20 (or US$0.230 per ADS) were based on 4,370,715,418 weighted average number of shares outstanding in 3Q21.

3Q21 Results Highlights – ATM[2]

  • Cost of revenues was NT$65,378 million for the quarter, up by 11% sequentially.

- Raw material cost totaled NT$24,441 million for the quarter, representing 27% of total net revenues.

- Labor cost totaled NT$14,512 million for the quarter, representing 16% of total net revenues.

- Depreciation, amortization and rental expenses totaled NT$11,615 million for the quarter.

  • Gross margin increased 1.8 percentage points to 27.4% in 3Q21 from 25.6% in 2Q21.

  • Operating margin was 17.3% in 3Q21, compared to 15.0% in 2Q21.

3Q21 Results Highlights – EMS

  • Cost of revenues for the quarter was NT$55,244 million, up by 24% sequentially.

- Raw material cost totaled NT$48,978 million for the quarter, representing 80% of total net revenues.

- Labor cost totaled NT$2,337 million for the quarter, representing 4% of total net revenues.

- Depreciation, amortization and rental expenses totaled NT$886 million for the quarter.

  • Gross margin increased 0.5 percentage points to 9.6% in 3Q21 from 9.1% in 2Q21.

  • Operating margin was 4.3% in 3Q21, compared to 2.6% in 2Q21.

LIQUIDITY AND CAPITAL RESOURCES

  • Capital expenditures in 3Q21 totaled US$468 million, of which US$294 million were used in packaging operations, US$101 million in testing operations, US$60 million in EMS operations and US$13 million in interconnect materials operations and others.

  • As of September 30, 2021, total unused credit lines amounted to NT$261,539 million.

  • Current ratio was 1.35 and net debt to equity ratio was 0.71 as of September 30, 2021.

  • Total number of employees was 104,471 as of September 30, 2021, compared to 103,164 as of June 30, 2021.

Business Review

Customers

ATM CONSOLIDATED BASIS

  • Our five largest customers together accounted for approximately 44% of our total net revenues in 3Q21, compared to 43% in 2Q21. Two customers each accounted for more than 10% of our total net revenues in 3Q21 individually.

  • Our top 10 customers contributed 55% of our total net revenues both in 3Q21 and 2Q21.

  • Our customers that are integrated device manufacturers or IDMs accounted for 31% of our total net revenues both in 3Q21 and 2Q21.

EMS BASIS

  • Our five largest customers together accounted for approximately 74% of our total net revenues in 3Q21, compared to 70% in 2Q21. One customer accounted for more than 10% of our total net revenues in 3Q21.

  • Our top 10 customers contributed 81% of our total net revenues in 3Q21, compared to 78% in 2Q21.

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 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. 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 presentation. 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 presentation. 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 2020 Annual Report on Form 20-F filed on April 6, 2021.

Supplemental Financial Information

Consolidated Operations


3Q/21

2Q/21

3Q/20

EBITDA (NT$ Millions)

32,655

27,350

23,230

ATM Consolidated Operations


3Q/21

2Q/21

3Q/20

Net Revenues (NT$ Millions)

90,092

78,988

71,820

Revenues by Application




Communication

51%

50%

53%

Computing

15%

14%

14%

Automotive, Consumer & Others

34%

36%

33%

Revenues by Type




Bumping, Flip Chip, WLP & SiP

36%

33%

37%

Wirebonding

39%

42%

37%

Discrete and Others

8%

8%

8%

Testing

15%

15%

17%

Material

2%

2%

1%

Capacity & EBITDA




CapEx (US$ Millions)*

407

570

362

EBITDA (NT$ Millions)

28,588

24,671

19,775

Number of Wirebonders

29,943

29,056

25,117

Number of Testers

6,149

6,001

5,715

EMS Operations


3Q/21

2Q/21

3Q/20

Net Revenues (NT$ Millions)

61,127

49,154

53,137

Revenues by End Application




Communication

38%

39%

40%

Computing & Storage

10%

10%

6%

Consumer

33%

28%

40%

Industrial

12%

16%

9%

Automotive

5%

5%

4%

Others

2%

2%

1%

Capacity




CapEx (US$ Millions)*

60

39

52

* 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 nine months ended


Sep. 30

2021


Jun. 30

2021


Sep. 30

2020


Sep. 30

2021


Sep. 30

2020


Net revenues:











Packaging

73,996


64,149


56,172


197,178


161,407


Testing

13,416


11,676


12,351


36,222


36,604


EMS

61,116


49,147


53,126


157,947


125,550


Others

2,137


1,954


1,546


5,714


4,540


Total net revenues

150,665


126,926


123,195


397,061


328,101













Cost of revenues

(119,881)


(102,122)


(103,475)


(319,586)


(273,416)


Gross profit

30,784


24,804


19,720


77,475


54,685













Operating expenses:











Research and development

(5,495)


(5,076)


(4,926)


(15,340)


(14,372)


Selling, general and administrative

(6,863)


(6,554)


(5,653)


(19,626)


(16,682)


Total operating expenses

(12,358)


(11,630)


(10,579)


(34,966)


(31,054)


Operating income

18,426


13,174


9,141


42,509


23,631













Net non-operating (expenses) income:











Interest expense - net

(562)


(569)


(660)


(1,703)


(2,324)


Foreign exchange gain (loss)

66


1,057


561


899


955


Gain (loss) on valuation of financial assets and liabilities

(349)


(1,050)


(406)


(1,008)


(237)


Gain (loss) on equity-method investments

414


219


277


782


343


Others

479


513


101


1,520


762


Total non-operating income (expenses)

48


170


(127)


490


(501)


Income before tax

18,474


13,344


9,014


42,999


23,130













Income tax expense

(3,630)


(2,648)


(1,797)


(8,729)


(4,618)


Income from continuing operations and

before non-controlling interest

14,844


10,696


7,217


34,270


18,512


Non-controlling interest

(668)


(358)


(505)


(1,278)


(964)













Net income attributable to

shareholders of the parent

14,176


10,338


6,712


32,992


17,548













Per share data:











Earnings (losses) per share











– Basic

NT$3.29


NT$2.40


NT$1.57


NT$7.66


NT$4.12


– Diluted

NT$3.20


NT$2.30


NT$1.54


NT$7.43


NT$4.01













Earnings (losses) per equivalent ADS











– Basic

US$0.236


US$0.171


US$0.107


US$0.546


US$0.276


– Diluted

US$0.230


US$0.164


US$0.105


US$0.530


US$0.269













Number of weighted average shares used in

diluted EPS calculation (in thousands)

4,370,715


4,362,634


4,281,115


4,370,312


4,284,010













FX (NTD/USD)

27.79


28.03


29.46


28.04


29.80


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 nine months ended


Sep. 30

2021


Jun. 30

2021


Sep. 30

2020


Sep. 30

2021


Sep. 30

2020


Net revenues:











Packaging

75,221


65,936


58,417


202,702


167,749


Testing

13,416


11,677


12,351


36,224


36,610


Direct Material

1,429


1,372


1,020


3,845


3,085


Others

26


3


32


76


101


Total net revenues

90,092


78,988


71,820


242,847


207,545













Cost of revenues

(65,378)


(58,778)


(57,280)


(179,916)


(164,589)


Gross profit

24,714


20,210


14,540


62,931


42,956













Operating expenses:











Research and development

(4,254)


(3,829)


(3,827)


(11,780)


(11,252)


Selling, general and administrative

(4,829)


(4,554)


(3,904)


(13,775)


(12,099)


Total operating expenses

(9,083)


(8,383)


(7,731)


(25,555)


(23,351)


Operating income

15,631


11,827


6,809


37,376


19,605














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 nine months ended


Sep. 30

2021


Jun. 30

2021


Sep. 30

2020


Sep. 30

2021


Sep. 30

2020


Net revenues:











Total net revenues

61,127


49,154


53,137


157,974


125,573













Cost of revenues

(55,244)


(44,678)


(47,990)


(143,604)


(113,648)


Gross profit

5,883


4,476


5,147


14,370


11,925













Operating expenses:











Research and development

(1,270)


(1,274)


(1,126)


(3,641)


(3,194)


Selling, general and administrative

(1,955)


(1,929)


(1,695)


(5,622)


(4,392)


Total operating expenses

(3,225)


(3,203)


(2,821)


(9,263)


(7,586)


Operating income

2,658


1,273


2,326


5,107


4,339













ASE Technology Holding Co., Ltd.
Summary of Consolidated Balance Sheet Data
(In NT$ millions)
(Unaudited)


As of Sep. 30, 2021


As of Jun. 30, 2021









Current assets:








Cash and cash equivalents



53,419




52,987

Financial assets – current



4,133




4,492

Notes and accounts receivable



108,156




88,644

Inventories



77,830




75,869

Others



16,695




15,369

Total current assets



260,233




237,361









Financial assets – non-current & Investments – equity

method



20,915




19,982

Property plant and equipment



252,384




244,861

Right-of-use assets



10,321




9,842

Intangible assets



77,283




78,254

Others



29,331




21,557

Total assets



650,467




611,857









Current liabilities:








Short-term borrowings



36,610




40,460

Current portion of bonds payable & Current portion of long-term borrowings



6,539




8,563

Notes and accounts payable



83,060




70,893

Others



66,417




62,778

Total current liabilities



192,626




182,694









Bonds payable



48,498




48,474

Long-term borrowings[3]



137,015




106,124

Other liabilities



21,489




20,060

Total liabilities



399,628




357,352









Equity attributable to shareholders of the parent



235,186




238,993

Non-controlling interests



15,653




15,512

Total liabilities & shareholders' equity



650,467




611,857

















Current Ratio



1.35




1.30

Net Debt to Equity Ratio



0.71




0.60

ASE Technology Holding Co., Ltd.
Summary of Consolidated Cash Flow Statements
(In NT$ millions)
(Unaudited)



For the three months ended


For the nine months ended



Sep. 30


Jun. 30


Sep. 30


Sep. 30


Sep. 30



2021

2021

2020

2021

2020

Cash Flows from Operating Activities:












Profit before income tax


18,474


13,344


9,014


42,999


23,130


Depreciation & amortization


13,864


13,460


13,022


40,454


38,495


Other operating activities items


(17,298)


(8,573)


(8,550)


(34,430)


(14,686)


Net cash generated from operating activities


15,040


18,231


13,486


49,023


46,939


Cash Flows from Investing Activities:












Net payments for property, plant and equipment


(20,294)


(18,440)


(12,297)


(52,787)


(42,489)


Other investment activities items


(348)


(1,259)


(156)


(1,812)


1,540


Net cash used in investing activities


(20,642)


(19,699)


(12,453)


(54,599)


(40,949)


Cash Flows from Financing Activities:












Total net proceeds from (repayment of) borrowings


25,319


(16,640)


12,412


28,279


7,401


Dividends paid


(18,083)


-


(8,521)


(18,083)


(8,521)


Other financing activities items


(854)


(1,022)


(5,917)


(263)


(6,178)


Net cash generated from (used in) financing activities


6,382


(17,662)


(2,026)


9,933


(7,298)


Foreign currency exchange effect


(348)


(1,666)


243


(2,476)


(1,350)


Net increase (decrease) in cash and cash equivalents


432


(20,796)


(750)


1,881


(2,658)


Cash and cash equivalents at the beginning of period


52,987


73,783


58,223


51,538


60,131


Cash and cash equivalents at the end of period


53,419


52,987


57,473


53,419


57,473


Cash and cash equivalents in the consolidated balance sheet


53,419


52,987


55,814


53,419


55,814


Cash and cash equivalents included in disposal groups held for sale


-


-


1,659


-


1,659



[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.

[3] Long-term borrowings include long-term loans and bills payable.

Investor Relations Contact:
ir@aseglobal.com
Tel: +886.2.6636.5678
http://www.aseglobal.com

Cision
Cision

View original content:https://www.prnewswire.com/news-releases/ase-technology-holding-co-ltd-reports-unaudited-consolidated-financial-results-for-the-third-quarter-of-2021-301410615.html

SOURCE ASE Technology Holding Co., Ltd.