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ASX ASE Technology Holding Co.Ltd

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

April 29, 2020

 

Commission File Number 001-16125
  
ASE Technology Holding Co., Ltd.
(Translation of registrant’s name into English)
  

26 Chin Third Road

Nantze Export Processing Zone

Kaoshiung, Taiwan

Republic of China

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F  ☒       Form 40-F ☐    

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐ 

 

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐ 

 

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 ASE TECHNOLOGY HOLDING CO., LTD.
  
  
 Date: April 29, 2020By:    /s/ Joseph Tung
  Name: Joseph Tung
  Title: Chief Financial Officer

 

 

 

 

Investor Relations Contact:

ir@aseglobal.com

Tel: +886.2.6636.5678

http://www.aseglobal.com

  

 

 

 ASE Technology Holding Co., Ltd. Reports Unaudited Consolidated Financial

Results for the First Quarter of 2020

 

Taipei, Taiwan, R.O.C., April 29, 2020 – 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 revenues1 of NT$97,357million for 1Q20, up by 10% year-over-year and down by 16% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$3,899 million, up from a net income attributable to shareholders of the parent of NT$2,043 million in 1Q19 and down from a net income attributable to shareholders of the parent of NT$6,383 million in 4Q19. Basic earnings per share for the quarter were NT$0.92 (or US$0.061 per ADS), compared to basic earnings per share of NT$0.48 for 1Q19 and basic earnings per share of NT$1.50 for 4Q19. Diluted earnings per share for the quarter were NT$0.89 (or US$0.060 per ADS), compared to diluted earnings per share of NT$0.46 for 1Q19 and diluted earnings per share of NT$1.47 for 4Q19.

 

RESULTS OF OPERATIONS

 

1Q20 Results Highlights – Consolidated

 

lNet revenue contribution from packaging operations, testing operations, EMS operations and others, each represented approximately 53%, 12%, 34% and 1%, respectively, of total net revenues for the quarter.

 

lCost of revenue was NT$81,201 million for the quarter, down from NT$96,174 million in 4Q19.

 

-Raw material cost totaled NT$44,094 million for the quarter, representing 45% of total net revenues.

 

-Labor cost totaled NT$13,438 million for the quarter, representing 14% of total net revenues.

 

-Depreciation, amortization and rental expenses totaled NT$11,666 million for the quarter.

 

lGross margin decreased 0.5 percentage points to 16.6% in 1Q20 from 17.1% in 4Q19.

 

lOperating margin was 6.2% in 1Q20, compared to 7.5% in 4Q19.

 

lIn terms of non-operating items:

 

 

 

1All 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.

 

 

 

 

 

 

-Net interest expense was NT$893 million.

 

-Net foreign exchange loss of NT$324 million was primarily attributable to the appreciation of U.S. dollar against New Taiwan dollar.

 

-Gain on valuation of financial assets and liabilities was NT$186 million.

 

-Net loss on equity-method investments was NT$39 million.

 

-             Other net non-operating incomes of NT$244 million were primarily attributable to miscellaneous incomes. Total non-operating expenses for the quarter were NT$826 million.

 

lIncome before tax was NT$5,237 million for 1Q20, compared to NT$8,582 million in 4Q19. We recorded income tax expenses of NT$1,175 million for the quarter, compared to NT$1,779 million in 4Q19.

 

lIn 1Q20, net income attributable to shareholders of the parent was NT$3,899 million, compared to net income attributable to shareholders of the parent of NT$2,043 million in 1Q19 and net income attributable to shareholders of the parent of NT$6,383 million in 4Q19.

 

lOur total number of shares outstanding at the end of the quarter was 4,334,711,132, including treasury stock owned by our subsidiaries. Our 1Q20 basic earnings per share of NT$0.92 (or US$0.061 per ADS) were based on 4,260,272,327 weighted average numbers of shares outstanding in 1Q20. Our 1Q20 diluted earnings per share of NT$0.89 (or US$0.060 per ADS) were based on 4,280,990,255 weighted average number of shares outstanding in 1Q20.

 

1Q20 Results Highlights – ATM2

 

lCost of revenues was NT$52,875 million for the quarter, down by 1% sequentially.

 

-Raw material cost totaled NT$18,391 million for the quarter, representing 28% of total net revenues.

 

-Labor cost totaled NT$11,957 million for the quarter, representing 18% of total net revenues.

 

-Depreciation, amortization and rental expenses totaled NT$11,039 million for the quarter.

 

lGross margin decreased 2.6 percentage points to 20.1% in 1Q20 from 22.7% in 4Q19.

 

lOperating margin was 8.4% in 1Q20, compared to 10.6% in 4Q19.

 

1Q20 Results Highlights – EMS

 

lCost of revenues for the quarter was NT$29,679 million, down by 33% sequentially.

 

-Raw material cost totaled NT$ 25,600 million for the quarter, representing 78% of total net revenues.

 

-Labor cost totaled NT$1,403 million for the quarter, representing 4% of total net revenues.

 

-Depreciation, amortization and rental expenses totaled NT$492 million for the quarter.

 

 

 

2ATM stands for Semiconductor Assembly, Testing and Material.

 

 

 

 

 

lGross margin increased 0.4 percentage points to 9.3% in 1Q20 from 8.9% in 4Q19.

  

lOperating margin decreased to 2.4% in 1Q20 from 3.2% in 4Q19.

 

LIQUIdiTY AND CAPITAL RESOURCES

 

lCapital expenditures in 1Q20 totaled US$410 million, of which US$237 million were used in packaging operations, US$156 million in testing operations, US$15 million in EMS operations and US$2 million in interconnect materials operations and others.

 

lAs of March 31, 2020, total unused credit lines amounted to NT$241,572 million.

 

lCurrent ratio was 1.25 and net debt to equity ratio was 0.71 as of March 31, 2020.

 

lTotal number of employees was 96,296 as of March 31, 2020, compared to 96,528 as of December 31, 2019.

 

Business Review

 

Customers

 

ATM consolidated Basis

 

lOur five largest customers together accounted for approximately 49% of our total net revenues in 1Q20, compared to 47% in 4Q19. Two customers each accounted for more than 10% of our total net revenues in 1Q20 individually.

 

lOur top 10 customers contributed 60% of our total net revenues in 1Q20, compared to 59% in 4Q19.

 

lOur customers that are integrated device manufacturers or IDMs accounted for 29% of our total net revenues in 1Q20, compared to 30% in 4Q19.

 

EMS Basis

 

lOur five largest customers together accounted for approximately 76% of our total net revenues in 1Q20, compared to 80% in 4Q19. One customer accounted for more than 10% of our total net revenues in 1Q20.

 

lOur top 10 customers contributed 88% of our total net revenues in 1Q20, compared to 90% in 4Q19.

 

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 athttp://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 2019 Annual Report on Form 20-F filed on March 31, 2020.

 

 

 

 

 

Supplemental Financial Information

 

Consolidated Operations 

 

 1Q/204Q/191Q/19
EBITDA (NT$ Millions)19,06122,54316,523

 

ATM Consolidated Operations 

 

 1Q/204Q/191Q/19
Net Revenues (NT$ Millions)66,20969,28754,371
Revenues by Application   
Communication54%54%53%
Computer15%16%13%
Automotive, Consumer & Others31%30%34%
Revenues by Type   
Bumping, Flip Chip, WLP & SiP38%38%34%
Wirebonding36%36%40%
Discrete and Others7%7%8%
Testing17%17%16%
Material2%2%2%
Capacity &EBITDA   
CapEx (US$ Millions)*394439231
EBITDA (NT$ Millions)17,69320,05214,620
Number of Wirebonders24,78025,00425,033
Number of Testers5,5545,4024,857

 

EMS Operations 

 

 1Q/204Q/191Q/19
Net Revenues (NT$ Millions)32,72748,76234,959
Revenues by End Application   
Communication36%43%29%
Computer & Storage14%11%13%
Consumer33%32%38%
Industrial11%10%14%
Automotive6%4%5%
Others0%0%1%
Capacity   
CapEx (US$ Millions)*15188

 

*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

 
 

Mar. 31

2020

 

Dec. 31 

2019

 

Mar. 31 

2019 

 
Net revenues:      
Packaging51,613 53,653 43,857 
Testing11,563 11,930 8,951 
EMS32,721 48,734 34,947 
Others1,460 1,706 1,106 
Total net revenues97,357 116,023 88,861 
       
Cost of revenues(81,201) (96,174) (77,476) 
Gross profit16,156 19,849 11,385 
       
Operating expenses:      
Research and development(4,609) (5,020) (3,955) 
Selling, general and administrative(5,484) (6,124) (5,137) 
Total operating expenses(10,093) (11,144) (9,092) 
Operating income6,063 8,705 2,293 
       
Non-operating (expenses) income:      
Interest expense, net(893) (895) (966) 
Foreign exchange gain (loss)(324) 1,634 (180) 
Gain (loss) on valuation of financial assets and liabilities186 (693) 1,556 
Gain (loss) on equity-method investments(39) 156 (154) 
Others244 (325) 86 
Total non-operating income (expenses)(826) (123) 342 
Income before tax5,237 8,582 2,635 
       
Income tax expense(1,175) (1,779) (405) 

Income from continuing operations and before non-controlling interest 

4,062 6,803 2,230 
Non-controlling interest(163) (420) (187) 
       

Net income attributable to shareholders of the parent 

3,899

 

6,383

 

2,043

 
       
Per share data:      
Earnings (losses) per share      
– BasicNT$0.92 NT$1.50 NT$0.48 
– DilutedNT$0.89 NT$1.47 NT$0.46 
       
Earnings (losses) per equivalent ADS      
– BasicUS$0.061 US$0.098 US$0.031 
– DilutedUS$0.060 US$0.096 US$0.030 
       

Number of weighted average shares used in diluted EPS calculation (in thousands)

4,280,990 4,284,201 4,255,559 
       
FX (NTD/USD)30.00 30.54 30.77 

 

 

 

 

 

 

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

 

 
 

Mar. 31 

2020

 

Dec. 31

2019 

 

Mar. 31 

2019 

 
Net revenues:      
Packaging53,600 56,093 44,488 
Testing11,566 11,932 8,951 
Direct Material1,014 1,228 900 
Others29 34 32 
Total net revenues66,209 69,287 54,371 
       
Cost of revenues(52,875) (53,590) (45,933) 
Gross profit13,334 15,697 8,438 
       
Operating expenses:      
Research and development(3,648) (4,001) (3,043) 
Selling, general and administrative(4,114) (4,330) (3,841) 
Total operating expenses(7,762) (8,331) (6,884) 
Operating income5,572 7,366 1,554 
       

 

 

 

 

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 

 
 

Mar. 31

2020

 

Dec. 31

2019

 

Mar. 31 

2019 

 
       
Net revenues32,727 48,762 34,959 
       
Cost of revenues(29,679) (44,443) (32,029) 
Gross profit3,048 4,319 2,930 
       
Operating expenses:      
Research and development(983) (1,063) (940) 
Selling, general and administrative(1,294) (1,703) (1,252) 
Total operating expenses(2,277) (2,766) (2,192) 
Operating income771 1,553 738 
       

 

 

 

 

ASE Technology Holding Co., Ltd. 

Summary of Consolidated Balance Sheet Data 

(In NT$ millions) 

(Unaudited)

 

 As of Mar. 31, 2020 As of Dec. 31, 2019
        
Current assets:       
Cash and cash equivalents  73,829   60,131
Financial assets – current  5,611   4,893
Notes and accounts receivable  73,573   78,948
Inventories  50,027   45,301
Others  13,575   12,728
Total current assets  216,615   202,001
        

Financial assets – non-current & Investments – equity method

  

14,750

   

15,663

Property plant and equipment  234,419   232,093
Right-of-use assets  9,578   9,792
Intangible assets  77,941   78,567
Others  18,365   18,538
Total assets  571,668   556,654
        
Current liabilities:       
Short-term borrowings  51,620   37,339
Current portion of bonds payable and long-term borrowings  13,725   5,363
Notes and accounts payable  53,944   56,066
Others  53,719   53,497
Total current liabilities  173,008   152,265
        
Bonds payable  29,276   36,272
Long-term borrowings  134,363   135,966
Other liabilities  17,555   17,804
Total liabilities  354,202   342,307
Shareholders of the parent  203,624   200,969
        
Non-controlling interests  13,842   13,378
Total liabilities & shareholders’ equity  571,668   556,654
        
        
Current Ratio  1.25   

1.33

 

Net Debt to Equity  0.71   

0.73

 

 

 

 

 

 

ASE Technology Holding Co., Ltd. 

Summary of Consolidated Cash Flow Statements

(In NT$ millions)

(Unaudited)

 

  

For the three months ended 

  
  Mar. 31 Dec. 31 Mar. 31  
 202020192019
Cash Flows from Operating Activities:        
Income before tax 5,237 8,582 2,635  
Depreciation & amortization 12,687 12,645 12,575  
Other operating activities items (4,476) 10,356 808  
Net cash generated from operating activities 13,448 31,583 16,018  
Cash Flows from Investing Activities:        
     Net payments for property, plant and equipment (13,605) (17,261) (8,878)  
Other investment activities items (205) (682) 2,750  
Net cash used in investing activities (13,810) (17,943) (6,128)  
Cash Flows from Financing Activities:        
Net proceeds from (repayment of) loans 13,890 (5,120) (3,172)  
Other financing activities items 194 (7,211) (152)  
Net cash generated from (used in) financing activities 14,084 (12,331) (3,324)  
Foreign currency exchange effect (24) (2,398) 1,233  
Net increase (decrease) in cash and cash equivalents 13,698 (1,089) 7,799  
Cash and cash equivalents at the beginning of period 60,131 61,220 51,518  
Cash and cash equivalents at the end of period 73,829 60,131 59,317