TAIPEI, April 27,
2023 /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$130,891 million for 1Q23, down by
9% year-over-year and down by 26% sequentially. Net income
attributable to shareholders of the parent for the quarter totaled
NT$5,817 million, down from
NT$12,907 million in 1Q22 and down
from NT$15,730 million in 4Q22.
Basic earnings per share for the quarter were NT$1.36 (or US$0.089 per ADS), compared to NT$3.01 for 1Q22 and NT$3.77 for 4Q22. Diluted earnings per
share for the quarter were NT$1.30
(or US$0.086 per ADS), compared to
NT$2.92 for 1Q22 and NT$3.57 for 4Q22.
RESULTS OF OPERATIONS
1Q23 Results Highlights – Consolidated
- Net revenues from packaging operations, testing operations, EMS
operations, and others represented approximately 46%, 9%, 44%, and
1% of the total net revenues for the quarter, respectively.
- Cost of revenues was NT$111,552
million for the quarter, down from NT$143,318 million in 4Q22.
- Raw material cost totaled NT$68,768
million for the quarter, representing 53% of the total net
revenues.
- Labor cost totaled NT$14,834
million for the quarter, representing 11% of the total net
revenues.
- Depreciation, amortization and rental expenses totaled
NT$13,120 million for the
quarter.
- Gross margin decreased by 4.4 percentage points to 14.8% in
1Q23 from 19.2% in 4Q22.
- Operating margin was 5.9% in 1Q23, compared to 11.1% in
4Q22.
- In terms of non-operating items:
- Net interest expense was NT$1,076
million.
- Net foreign exchange gain was NT$545
million, primarily attributable to the depreciation of the
U.S. dollar against the New Taiwan dollar.
- Net gain on valuation of financial assets and liabilities
was NT$103 million.
- Net loss on equity-method investments was NT$12 million.
- Other net non-operating income was NT$615 million, primarily attributable to
miscellaneous income. Total non-operating income for the quarter
was NT$175 million.
- Income before tax was NT$7,870
million in 1Q23, compared to NT$20,212 million in 4Q22. We recorded income tax
expenses of NT$1,777 million for the
quarter, compared to NT$3,596 million
in 4Q22.
- Net income attributable to shareholders of the parent was
NT$5,817 million in 1Q23, compared to
NT$12,907 million in 1Q22 and
NT$15,730 million in 4Q22.
- Our total number of shares outstanding at the end of the
quarter was 4,373,435,887, including treasury stock owned by our
subsidiaries in 1Q23. Our 1Q23 basic earnings per share of
NT$1.36 (or US$0.089 per ADS) were based on 4,288,646,994
weighted average numbers of shares outstanding in 1Q23. Our
1Q23 diluted earnings per share of NT$1.30 (or US$0.086 per ADS) were based on 4,336,964,892
weighted average number of shares outstanding in 1Q23.
1Q23 Results Highlights – ATM
- Net revenues were NT$73,319
million for the quarter, down by 13% year-over-year and down
by 22% sequentially.
- Cost of revenues was NT$58,570
million for the quarter, down by 14% sequentially.
- Raw material cost totaled NT$21,949
million for the quarter, representing 30% of the total net
revenues.
- Labor cost totaled NT$12,024
million for the quarter, representing 16% of the total net
revenues.
- Depreciation, amortization and rental expenses totaled
NT$11,802 million for the
quarter.
- Gross margin decreased by 7.7 percentage points to 20.1% in
1Q23 from 27.8% in 4Q22.
- Operating margin was 8.7% in 1Q23, compared to 16.7% in
4Q22.
1Q23 Results Highlights – EMS
- Net revenues were NT$57,733
million, down by 31% sequentially.
- Cost of revenues for the quarter was NT$53,166 million, down by 5% year-over-year and
down by 30% sequentially.
- Raw material cost totaled NT$46,749
million for the quarter, representing 81% of the total net
revenues.
- Labor cost totaled NT$2,670
million for the quarter, representing 5% of the total net
revenues.
- Depreciation, amortization and rental expenses totaled
NT$1,042 million for the
quarter.
- Gross margin decreased by 1.4 percentage points to 7.9% in 1Q23
from 9.3% in 4Q22.
- Operating margin was 2.3% in 1Q23, compared to 4.7% in
4Q22.
LIQUIDITY AND CAPITAL RESOURCES
- Capital expenditures in 1Q23 totaled US$231 million, of which US$101 million was used in packaging operations,
US$90 million in testing operations,
US$32 million in EMS operations and
US$8 million in interconnect
materials operations and others.
- Total unused credit lines amounted to NT$337,216 million as of March 31, 2023.
- Current ratio was 1.16 and net debt to equity ratio was 0.42 as
of March 31, 2023.
- Total number of employees was 94,172 as of March 31, 2023, compared to 97,079 as of
December 31, 2022.
BUSINESS REVIEW
Customers
ATM BASIS
- Our five largest customers together accounted for approximately
41% of our total net revenues in 1Q23, compared to 44% in
4Q22. One customer accounted for more than 10% of our total
net revenues in 1Q23.
- Our top 10 customers contributed 56% of our total net revenues
in 1Q23, compared to 58% in 4Q22.
- Our customers that are integrated device manufacturers or IDMs
accounted for 35% of our total net revenues in 1Q23, compared
to 34% in 4Q22.
EMS BASIS
- Our five largest customers together accounted for approximately
67% of our total net revenues in 1Q23, compared to 73% in 4Q22. One
customer accounted for more than 10% of our total net revenues in
4Q22.
- Our top 10 customers contributed 75% of our total net revenues
in 1Q23, compared to 80% in 4Q22.
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. 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 2022
Annual Report on Form 20-F filed on April
10, 2023.
Supplemental Financial Information
(Unaudited)
Consolidated Operations
|
1Q23
|
4Q22
|
1Q22
|
EBITDA (NT$
million)
|
23,765
|
35,855
|
30,661
|
ATM Operations
|
1Q23
|
4Q22
|
1Q22
|
Net Revenues (NT$
million)
|
73,319
|
94,322
|
84,025
|
Revenue by Application
|
|
|
|
Communication
|
50 %
|
53 %
|
52 %
|
Computing
|
17 %
|
16 %
|
16 %
|
Automotive, Consumer
& Others
|
33 %
|
31 %
|
32 %
|
Revenue by Type
|
|
|
|
Bumping, Flip Chip, WLP
& SiP
|
41 %
|
43 %
|
43 %
|
Wirebonding
|
34 %
|
33 %
|
34 %
|
Others
|
8 %
|
7 %
|
6 %
|
Testing
|
16 %
|
15 %
|
15 %
|
Material
|
1 %
|
2 %
|
2 %
|
Capacity & EBITDA
|
|
|
|
CapEx (US$
million)*
|
197
|
311
|
414
|
EBITDA (NT$
million)
|
20,552
|
29,856
|
27,116
|
Number of
Wirebonders
|
25,799
|
25,854
|
25,858
|
Number of
Testers
|
5,447
|
5,359
|
5,012
|
EMS Operations
|
1Q23
|
4Q22
|
1Q22
|
Net Revenues (NT$
million)
|
57,733
|
83,933
|
61,166
|
Revenue by Application
|
|
|
|
Communication
|
35 %
|
38 %
|
40 %
|
Computing
|
8 %
|
9 %
|
10 %
|
Consumer
|
29 %
|
34 %
|
29 %
|
Industrial
|
17 %
|
12 %
|
13 %
|
Automotive
|
9 %
|
6 %
|
6 %
|
Others
|
2 %
|
1 %
|
2 %
|
Capacity
|
|
|
|
CapEx (US$
million)*
|
32
|
25
|
26
|
*Capital expenditure excludes building construction costs.
ASE Technology Holding Co., Ltd.
Summary of Consolidated Statement of Income
Data
(In NT$ millions, except per share
data)
(Unaudited)
|
For the three months
ended
|
|
Mar. 31
2023
|
|
Dec. 31
2022
|
|
Mar. 31
2022
|
Net revenues
|
|
|
|
|
|
Packaging
|
60,029
|
|
76,630
|
|
68,383
|
Testing
|
11,407
|
|
14,676
|
|
12,583
|
EMS
|
57,731
|
|
83,931
|
|
61,163
|
Others
|
1,724
|
|
2,180
|
|
2,262
|
Total net
revenues
|
130,891
|
|
177,417
|
|
144,391
|
|
|
|
|
|
|
Cost of
revenues
|
(111,552)
|
|
(143,318)
|
|
(115,920)
|
Gross profit
|
19,339
|
|
34,099
|
|
28,471
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
Research and
development
|
(5,572)
|
|
(6,951)
|
|
(5,362)
|
Selling, general and
administrative
|
(6,072)
|
|
(7,374)
|
|
(6,996)
|
Total operating
expenses
|
(11,644)
|
|
(14,325)
|
|
(12,358)
|
Operating
income
|
7,695
|
|
19,774
|
|
16,113
|
|
|
|
|
|
|
Net non-operating
income and expenses
|
|
|
|
|
|
Interest expense -
net
|
(1,076)
|
|
(1,093)
|
|
(572)
|
Foreign exchange gain
(loss)
|
545
|
|
2,763
|
|
(1,104)
|
Gain (loss) on
valuation of financial assets and liabilities
|
103
|
|
(1,720)
|
|
1,406
|
Gain (loss) on
equity-method investments
|
(12)
|
|
85
|
|
199
|
Others
|
615
|
|
403
|
|
621
|
Total non-operating
income and expenses
|
175
|
|
438
|
|
550
|
Income before
tax
|
7,870
|
|
20,212
|
|
16,663
|
|
|
|
|
|
|
Income tax
expense
|
(1,777)
|
|
(3,596)
|
|
(3,278)
|
Income from operations
and before non-controlling interests
|
6,093
|
|
16,616
|
|
13,385
|
Non-controlling
interests
|
(276)
|
|
(886)
|
|
(478)
|
|
|
|
|
|
|
Net income attributable
to shareholders of the parent
|
5,817
|
|
15,730
|
|
12,907
|
|
|
|
|
|
|
Per share
data:
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
– Basic
|
NT$1.36
|
|
NT$3.77
|
|
NT$3.01
|
– Diluted
|
NT$1.30
|
|
NT$3.57
|
|
NT$2.92
|
|
|
|
|
|
|
Earnings per equivalent
ADS
|
|
|
|
|
|
– Basic
|
US$0.089
|
|
US$0.240
|
|
US$0.216
|
– Diluted
|
US$0.086
|
|
US$0.228
|
|
US$0.210
|
|
|
|
|
|
|
Number of weighted
average shares used in diluted EPS calculation
( in thousand
shares)
|
4,336,965
|
|
4,218,765
|
|
4,341,042
|
|
|
|
|
|
|
FX (NTD/USD)
|
30.40
|
|
31.36
|
|
27.85
|
ASE Technology Holding Co., Ltd.
Summary of ATM Statement of Income
Data
(In NT$ millions)
(Unaudited)
|
For the three months
ended
|
|
Mar. 31
2023
|
|
Dec. 31
2022
|
|
Mar. 31
2022
|
Net
revenues:
|
|
|
|
|
|
Packaging
|
60,770
|
|
78,119
|
|
69,921
|
Testing
|
11,407
|
|
14,676
|
|
12,583
|
Direct
Material
|
1,106
|
|
1,486
|
|
1,479
|
Others
|
36
|
|
41
|
|
42
|
Total net
revenues
|
73,319
|
|
94,322
|
|
84,025
|
|
|
|
|
|
|
Cost of
revenues
|
(58,570)
|
|
(68,129)
|
|
(60,924)
|
Gross profit
|
14,749
|
|
26,193
|
|
23,101
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Research and
development
|
(4,269)
|
|
(5,263)
|
|
(4,136)
|
Selling, general and
administrative
|
(4,071)
|
|
(5,152)
|
|
(4,953)
|
Total operating
expenses
|
(8,340)
|
|
(10,415)
|
|
(9,089)
|
Operating
income
|
6,409
|
|
15,778
|
|
14,012
|
ASE Technology Holding Co., Ltd.
Summary of EMS Statement of Income
Data
(In NT$ millions)
(Unaudited)
|
For the three months
ended
|
|
Mar. 31
2023
|
|
Dec. 31
2022
|
|
Mar. 31
2022
|
|
|
|
|
|
|
Net revenues
|
57,733
|
|
83,933
|
|
61,166
|
|
|
|
|
|
|
Cost of
revenues
|
(53,166)
|
|
(76,130)
|
|
(55,786)
|
Gross profit
|
4,567
|
|
7,803
|
|
5,380
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Research and
development
|
(1,324)
|
|
(1,710)
|
|
(1,249)
|
Selling, general and
administrative
|
(1,918)
|
|
(2,134)
|
|
(1,931)
|
Total operating
expenses
|
(3,242)
|
|
(3,844)
|
|
(3,180)
|
Operating
income
|
1,325
|
|
3,959
|
|
2,200
|
ASE Technology Holding Co., Ltd.
Summary of Consolidated Balance Sheet
Data
(In NT$ millions)
(Unaudited)
|
|
|
As of Mar. 31,
2023
|
|
|
As of Dec. 31,
2022
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
62,056
|
|
|
58,040
|
Financial assets –
current
|
|
|
6,317
|
|
|
7,560
|
Trade
receivables
|
|
|
91,514
|
|
|
114,647
|
Inventories
|
|
|
85,667
|
|
|
92,826
|
Others
|
|
|
25,717
|
|
|
27,294
|
Total current
assets
|
|
|
271,271
|
|
|
300,367
|
|
|
|
|
|
|
|
Financial assets –
non-current & Investments – equity method
|
|
|
24,352
|
|
|
22,909
|
Property, plant and
equipment
|
|
|
266,005
|
|
|
268,235
|
Right-of-use
assets
|
|
|
10,882
|
|
|
11,061
|
Intangible
assets
|
|
|
72,101
|
|
|
72,835
|
Others
|
|
|
30,829
|
|
|
31,661
|
Total assets
|
|
|
675,440
|
|
|
707,068
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Short-term
borrowings
|
|
|
45,158
|
|
|
46,731
|
Current portion of
bonds payable &
Current portion of long-term
borrowings
|
|
|
11,999
|
|
|
10,041
|
Trade
payables
|
|
|
63,552
|
|
|
78,997
|
Others
|
|
|
113,650
|
|
|
86,492
|
Total current
liabilities
|
|
|
234,359
|
|
|
222,261
|
|
|
|
|
|
|
|
Bonds
payable
|
|
|
38,837
|
|
|
42,851
|
Long-term
borrowings[2]
|
|
|
86,752
|
|
|
94,948
|
Other
liabilities
|
|
|
25,766
|
|
|
27,083
|
Total
liabilities
|
|
|
385,714
|
|
|
387,143
|
|
|
|
|
|
|
|
Equity attributable
to shareholders of the
parent
|
|
|
270,651
|
|
|
301,285
|
Non-controlling
interests
|
|
|
19,075
|
|
|
18,640
|
Total liabilities &
shareholders' equity
|
|
|
675,440
|
|
|
707,068
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Ratio
|
|
|
1.16
|
|
|
1.35
|
Net Debt to Equity
Ratio
|
|
|
0.42
|
|
|
0.43
|
ASE Technology Holding Co., Ltd.
Summary of Consolidated Statement of Cash Flow
Data
(In NT$ millions)
(Unaudited)
|
|
For the three months ended
|
|
|
|
Mar. 31
|
|
Dec.
31
|
|
Mar. 31
|
|
2023
|
2022
|
2022
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
Income before
tax
|
|
7,870
|
|
20,212
|
|
16,663
|
Depreciation &
amortization
|
|
14,440
|
|
14,253
|
|
13,503
|
Other operating
activities items
|
|
8,448
|
|
15,711
|
|
(2,986)
|
Net cash generated from
operating activities
|
|
30,758
|
|
50,176
|
|
27,180
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
Net payments for property,
plant and equipment
|
|
(15,206)
|
|
(20,197)
|
|
(17,182)
|
Other investment
activities items
|
|
415
|
|
(1,352)
|
|
(753)
|
Net cash used in
investing activities
|
|
(14,791)
|
|
(21,549)
|
|
(17,935)
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
Net repayment of
loans
|
|
(11,621)
|
|
(18,010)
|
|
(5,310)
|
Other financing
activities items
|
|
116
|
|
111
|
|
(269)
|
Net cash used in
financing activities
|
|
(11,505)
|
|
(17,899)
|
|
(5,579)
|
Foreign currency
exchange effect
|
|
(446)
|
|
(5,046)
|
|
4,687
|
Net increase in cash
and cash equivalents
|
|
4,016
|
|
5,682
|
|
8,353
|
Cash and cash
equivalents at the beginning of period
|
|
58,040
|
|
52,358
|
|
76,073
|
Cash and cash
equivalents at the end of period
|
|
62,056
|
|
58,040
|
|
84,426
|
|
|
|
|
|
|
|
|
[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] Long-term borrowings include long-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-2023-301809339.html
SOURCE ASE Technology Holding Co., Ltd.