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ASX ASE Technology Holding Co.Ltd

Filed: 30 Oct 20, 6:06am

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

 

October 30, 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: October 30, 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 Third Quarter of 2020

 

Taipei, Taiwan, R.O.C., October 30, 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$123,195 million for 3Q20, up by 5% year-over-year and up by 15% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$6,712 million, up from a net income attributable to shareholders of the parent of NT$5,734 million in 3Q19 and down from a net income attributable to shareholders of the parent of NT$6,937 million in 2Q20. Basic earnings per share for the quarter were NT$1.57 (or US$0.107 per ADS), compared to basic earnings per share of NT$1.35 for 3Q19 and basic earnings per share of NT$1.63 for 2Q20. Diluted earnings per share for the quarter were NT$1.54 (or US$0.105 per ADS), compared to diluted earnings per share of NT$1.33 for 3Q19 and diluted earnings per share of NT$1.60 for 2Q20.

 

RESULTS OF OPERATIONS

 

3Q20 Results Highlights – Consolidated

 

lNet revenue contribution from packaging operations, testing operations, EMS operations and others, each represented approximately 46%, 10%, 43% and 1%, respectively, of total net revenues for the quarter.

 

lCost of revenue was NT$103,475 million for the quarter, up from NT$88,740 million in 2Q20.

 

-Raw material cost totaled NT$62,860 million for the quarter, representing 51% of total net revenues.

 

-Labor cost totaled NT$13,725 million for the quarter, representing 11% of total net revenues.

 

-Depreciation, amortization and rental expenses totaled NT$11,878 million for the quarter.

 

lGross margin decreased 1.5 percentage points to 16.0% in 3Q20 from 17.5% in 2Q20.

 

lOperating margin was 7.4% in 3Q20, compared to 7.8% in 2Q20.

 

 

 

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.

 

 

 

 

 

lIn terms of non-operating items:

 

-Net interest expense was NT$660 million.

 

-Net foreign exchange gain of NT$561 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$406 million.

 

-Net gain on equity-method investments was NT$277 million.

 

-Other net non-operating income of NT$101 million were primarily attributable to miscellaneous incomes. Total non-operating expenses for the quarter were NT$127 million.

 

lIncome before tax was NT$9,014 million for 3Q20, compared to NT$8,879 million in 2Q20. We recorded income tax expenses of NT$1,797 million for the quarter, compared to NT$1,646 million in 2Q20.

 

lIn 3Q20, net income attributable to shareholders of the parent was NT$6,712 million, compared to net income attributable to shareholders of the parent of NT$5,734 million in 3Q19 and net income attributable to shareholders of the parent of NT$6,937 million in 2Q20.

 

lOur total number of shares outstanding at the end of the quarter was 4,338,531,132, including treasury stock owned by our subsidiaries. Our 3Q20 basic earnings per share of NT$1.57 (or US$0.107 per ADS) were based on 4,265,546,050 weighted average numbers of shares outstanding in 3Q20. Our 3Q20 diluted earnings per share of NT$1.54 (or US$0.105 per ADS) were based on 4,281,115,585 weighted average number of shares outstanding in 3Q20.

 

3Q20 Results Highlights – ATM2

 

lCost of revenues was NT$57,280 million for the quarter, up by 5% sequentially.

 

-Raw material cost totaled NT$20,102 million for the quarter, representing 28% of total net revenues.

 

-Labor cost totaled NT$12,104 million for the quarter, representing 17% of total net revenues.

 

-Depreciation, amortization and rental expenses totaled NT$11,198 million for the quarter.

 

lGross margin decreased 1.5 percentage points to 20.2% in 3Q20 from 21.7% in 2Q20.

 

lOperating margin was 9.5% in 3Q20, compared to 10.4% in 2Q20.

 

3Q20 Results Highlights – EMS

 

lCost of revenues for the quarter was NT$47,990 million, up by 33% sequentially.

 

-Raw material cost totaled NT$42,621 million for the quarter, representing 80% of total net revenues.

 

-Labor cost totaled NT$1,540 million for the quarter, representing 3% of total net revenues.

 

-Depreciation, amortization and rental expenses totaled NT$551 million for the quarter.

 

 

 

2 ATM stands for Semiconductor Assembly, Testing and Material.

 

 

 

 

 

lGross margin increased 0.3 percentage points to 9.7% in 3Q20 from 9.4% in 2Q20.

 

lOperating margin increased to 4.4% in 3Q20 from 3.1% in 2Q20.

 

LIQUIdiTY AND CAPITAL RESOURCES

 

lCapital expenditures in 3Q20 totaled US$415 million, of which US$288 million were used in packaging operations, US$73 million in testing operations, US$52 million in EMS operations and US$2 million in interconnect materials operations and others.

 

lAs of September 30, 2020, total unused credit lines amounted to NT$255,582 million.

 

lCurrent ratio was 1.33 and net debt to equity ratio was 0.75 as of September 30, 2020.

 

lTotal number of employees was 97,259 as of September 30, 2020, compared to 95,448 as of June 30, 2020.

 

Business Review

 

Customers

 

ATM consolidated Basis

 

lOur five largest customers together accounted for approximately 48% of our total net revenues in 3Q20, compared to 50% in 2Q20. Three customers each accounted for more than 10% of our total net revenues in 3Q20 individually.

 

lOur top 10 customers contributed 60% of our total net revenues in 3Q20, compared to 61% in 2Q20.

 

lOur customers that are integrated device manufacturers or IDMs accounted for 30% of our total net revenues in 3Q20, compared to 29% in 2Q20.

 

EMS Basis

 

lOur five largest customers together accounted for approximately 83% of our total net revenues in 3Q20, compared to 78% in 2Q20. One customer accounted for more than 10% of our total net revenues in 3Q20.

 

lOur top 10 customers contributed 90% of our total net revenues in 3Q20, compared to 89% in 2Q20.

 

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 http://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

 3Q/202Q/203Q/19
EBITDA (NT$ Millions)23,23022,48821,214
 

ATM Consolidated Operations

 3Q/202Q/203Q/19
Net Revenues (NT$ Millions)71,82069,51667,901
Revenues by Application   
Communication53%54%53%
Computer14%14%14%
Automotive, Consumer & Others33%32%33%
Revenues by Type   
Bumping, Flip Chip, WLP & SiP37%38%35%
Wirebonding37%35%37%
Discrete and Others8%7%9%
Testing17%18%17%
Material1%2%2%
Capacity & EBITDA   
CapEx (US$ Millions)*362424413
EBITDA (NT$ Millions)19,77520,03718,312
Number of Wirebonders25,11724,66725,008
Number of Testers5,7155,7905,254

 

EMS Operations

 3Q/202Q/203Q/19
Net Revenues (NT$ Millions)53,13739,70950,599
Revenues by End Application   
Communication40%46%36%
Computer & Storage6%12%9%
Consumer40%28%41%
Industrial9%10%9%
Automotive4%3%4%
Others1%1%1%
Capacity   
CapEx (US$ Millions)*527023

 

 * 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

2020

 

Jun. 30

2020

 

Sep. 30 

2019

 

Sep. 30

2020

 

Sep. 30 

2019 

 
Net revenues:          
Packaging56,172 53,622 53,804 161,407 145,263 
Testing12,351 12,690 11,493 36,604 30,729 
EMS53,126 39,703 50,584 125,550 117,055 
Others1,546 1,534 1,676 4,540 4,112 
Total net revenues123,195 107,549 117,557 328,101 297,159 
           
Cost of revenues(103,475) (88,740) (98,449) (273,416) (252,697) 
Gross profit19,720 18,809 19,108 54,685 44,462 
           
Operating expenses:          
Research and development(4,926) (4,837) (4,906) (14,372) (13,376) 
Selling, general and administrative(5,653) (5,545) (5,817) (16,682) (16,265) 
Total operating expenses(10,579) (10,382) (10,723) (31,054) (29,641) 
Operating income9,141 8,427 8,385 23,631 14,821 
           
Net non-operating (expenses) income:          
Interest expense - net(660) (771) (866) (2,324) (2,741) 
Foreign exchange gain (loss)561 718 12 955 (508) 
Gain (loss) on valuation of financial assets and liabilities

(406)

 

(17)

 

(19)

 

(237)

 

2,339

 
Gain on equity-method investments277 105 148 343 108 
Others101 417 61 762 761 
Total non-operating income (expenses)(127) 452 (664) (501) (41) 
Income before tax9,014 8,879 7,721 23,130 14,780 
           
Income tax expense(1,797) (1,646) (1,501) (4,618) (3,530) 

Income from continuing operations and 

before noncontrolling interest 

7,217 7,233 6,220 18,512 11,250 
Noncontrolling interest(505) (296) (486) (964) (783) 
           

Net income attributable to shareholders of the parent

6,712

 

6,937

 

5,734

 

17,548

 

10,467

 
           
Per share data:          
Earnings (losses) per share          
– BasicNT$1.57 NT$1.63 NT$1.35 NT$4.12 NT$2.46 
– DilutedNT$1.54 NT$1.60 NT$1.33 NT$4.01 NT$2.40 
           
Earnings (losses) per equivalent ADS          
– BasicUS$0.107 US$0.109 US$0.087 US$0.276 US$0.159 
– DilutedUS$0.105 US$0.107 US$0.085 US$0.269 US$0.155 
           

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

4,281,1154,273,7704,261,5154,284,0104,256,985
           
FX (NTD/USD)29.46 29.94 31.17 29.80 30.99 

 

 

 

 

 

 

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 

2020

 

Jun. 30 

2020

 

Sep. 30 

2019

 

Sep. 30 

2020 

 

Sep. 30 

2019 

 
Net revenues:          
Packaging58,417 55,732 55,163 167,749 147,980 
Testing12,351 12,693 11,495 36,610 30,732 
Direct Material1,020 1,051 1,211 3,085 3,055 
Others32 40 32 101 100 
Total net revenues71,820 69,516 67,901 207,545 181,867 
           
Cost of revenues(57,280) (54,434) (53,193) (164,589) (147,620) 
Gross profit14,540 15,082 14,708 42,956 34,247 
           
Operating expenses:          
Research and development(3,827) (3,777) (3,894) (11,252) (10,351) 
Selling, general and administrative(3,904) (4,081) (4,401) (12,099) (12,262) 
Total operating expenses(7,731) (7,858) (8,295) (23,351) (22,613) 
Operating income6,809 7,224 6,413 19,605 11,634 
           
 
 

 

 

 

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 

2020

 

Jun. 30

2020

 

Sep. 30

2019

 

Sep. 30

2020

 

Sep. 30

2019

 
Net revenues:          
Total net revenues53,137 39,709 50,599 125,573 117,091 
           
Cost of revenues(47,990) (35,979) (46,105) (113,648) (106,791) 
Gross profit5,147 3,730 4,494 11,925 10,300 
           
Operating expenses:          
Research and development(1,126) (1,085) (1,042) (3,194) (3,107) 
Selling, general and administrative(1,695) (1,403) (1,353) (4,392) (3,853) 
Total operating expenses(2,821) (2,488) (2,395) (7,586) (6,960) 
Operating income2,326 1,242 2,099 4,339 3,340 
           
 
 

 

 

 

ASE Technology Holding Co., Ltd. 

Summary of Consolidated Balance Sheet Data 

(In NT$ millions) 

(Unaudited)

 

 As of Sep. 30, 2020 As of Jun. 30, 2020
        
Current assets:       
Cash and cash equivalents  55,814   58,223
Financial assets – current  5,993   5,483
Notes and accounts receivable  86,718   73,763
Inventories  62,948   50,649
Others  22,167   14,395
Total current assets  233,640   202,513
        

Financial assets – non-current & Investments – equity method

  

14,279

   

12,950

Property plant and equipment  230,938   238,757
Right-of-use assets  8,346   9,091
Intangible assets  76,383   77,154
Others  17,964   18,127
Total assets  581,550   558,592
        
Current liabilities:       
Short-term borrowings  34,099   45,814
Current portion of bonds payable & Current portion oflong-term borrowings3  

13,708

   

11,366

Notes and accounts payable  71,515   54,400
Others  56,152   61,045
Total current liabilities  175,474   172,625
        
Bonds payable  49,249   39,263
Long-term borrowings4  122,097   115,518
Other liabilities  17,187   17,251
Total liabilities  364,007   344,657
        
Equity attributable to shareholders of the parent  205,510   200,409
Non-controlling interests  12,033   13,526
Total liabilities & shareholders’ equity  581,550   558,592
        
        
Current Ratio  1.33   

1.17

 

Net Debt to Equity Ratio  0.75   

0.72

 

   

 

3 Current portion of long-term borrowings include long-term loans and notes payable.

4 Long-term borrowings include long-term loans and bills payable.

 

 

 

 

 

 

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 
 20202020201920202019
Cash Flows from Operating Activities:           
Profit before income tax 9,014 8,879 7,721 23,130 14,780 
Depreciation & amortization 13,022 12,785 12,610 38,495 37,822 
Other operating activities items (8,550) (1,659) (7,252) (14,686) (11,883) 
Net cash generated from operating activities 13,486 20,005 13,079 46,939 40,719 
Cash Flows from Investing Activities:           
Net payments for property, plant and equipment (12,297) (16,587) (18,771) (42,489) (39,100) 
Other investment activities items (156) 1,902 488 1,541 2,464 
Net cash used in investing activities (12,453) (14,685) (18,283) (40,948) (36,636) 
Cash Flows from Financing Activities:           
Total net proceeds from (repayment of) debts 12,412 (18,900) 26,553 7,401 20,860 
Dividends paid (8,521) - (10,623) (8,521) (10,623) 
Other financing activities items (5,917) (457) (3,356) (6,178) (4,404) 
Net cash generated from (used in) financing activities (2,026) (19,357) 12,574 (7,298) 5,833 
Foreign currency exchange effect 243 (1,569) (1,240) (1,351) (214) 
Net increase (decrease) in cash and cash equivalents (750) (15,606) 6,130 (2,658) 9,702 
Cash and cash equivalents at the beginning of period 58,223 73,829 55,090 60,131 51,518 
Cash and cash equivalents at the end of period 57,473 58,223 61,220 57,473 61,220 
Cash and cash equivalents in the consolidated balance sheet 55,814 58,223 61,220 55,814 61,220 
Cash and cash equivalents included in disposal groups held for sale 1,659 - - 1,659 -