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

2024


Mar. 31

2024


Jun. 30

2023


Jun. 30

2024


Jun. 30

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

2024


Mar. 31

2024


Jun. 30

2023


Jun. 30

2024


Jun. 30

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

2024


Mar. 31

2024


Jun. 30

2023


Jun. 30

2024


Jun. 30

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, 2024



As of Mar. 31, 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

2024


Mar. 31

2024


Jun. 30

2023


Jun. 30

2024


Jun. 30

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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