ASE Technology Holding Co., Ltd.

6-K 1 dp183142_6k.htm FORM 6-K

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 27, 2022

Commission File Number 001-16125
ASE Technology Holding Co., Ltd.
(Translation of registrant’s name into English)
26, Chin 3rd Road Kaohsiung, 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.

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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.

/s/ Joseph Tung
Name: Joseph Tung
Title: Chief Financial Officer

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Investor Relations Contact:

[email protected]

Tel: +886.2.6636.5678

http://www.aseglobal.com

ASE Technology Holding Co., Ltd. Reports Its Unaudited Consolidated Financial Results for the Third Quarter of 2022

Taipei, Taiwan, R.O.C., October 27, 2022 – ASE Technology Holding Co., Ltd. (T W SE: 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$ 188,626 million for 3Q22, up by 25% year-over-year (or up by 31% year-over-year on pro forma basis) and up by 18% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$17,465 million, up from a net income attributable to shareholders of the parent of NT$14,176 million in 3Q21 (or up from a net income attributable to shareholders of the parent of NT$13,256 million in 3Q21 on pro forma basis) and up from a net income attributable to shareholders of the parent of NT$15,988 million in 2Q22. Basic earnings per share for the quarter were NT$4.03 (or US$0.268 per ADS), compared to NT$3.29 for 3Q21 (or NT$3.07 for 3Q21 on pro forma basis) and NT$3.69 for 2Q22. Diluted earnings per share for the quarter were NT$3.92 (or US$0.260 per ADS), compared to NT$3.20 for 3Q21 (or NT$2.99 for 3Q21 on pro forma basis) and NT$3.61 for 2Q22.

We are providing you with the unaudited pro forma financial information to assist you in your analysis of the financial aspects of our disposal of the China Sites in 4Q21. The unaudited pro forma financial information was based on our historical financial statements and historical financial statements of our China sites, given effect to the disposal as if it had occurred for the preceding three months and nine months ended 3Q21. For more details on our operations, please refer to “Supplemental Financial Information”, “Summary of Consolidated Statement of Income Data”, and “Summary of ATM Statement of Income Data.”

RESULTS OF OPERATIONS

3Q22 Results Highlights – Consolidated

l Net revenues contribution from packaging operations, testing operations, EMS operations and others, each represented approximately 43%, 8%, 48% and 1%, respectively, of the total net revenues of the quarter.

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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.

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l Cost of revenues was NT$150,654 million for the quarter, up from NT$126,051 million in 2Q22.

Raw material cost totaled NT$102,158 million for the quarter, representing 54% of the total net revenues.
Labor cost totaled NT$17,292 million for the quarter, representing 9% of the total net revenues.
Depreciation, amortization and rental expenses totaled NT$12,811 million for the quarter.

l Gross margin decreased by 1.3 percentage points to 20.1% in 3Q22 from 21.4% in 2Q22.

l Operating margin was 12.6% in 3Q22, compared to 12.8% in 2Q22.

l In terms of non-operating items:

Net interest expense was NT$966 million.
Net foreign exchange loss of NT$2,818 million was primarily attributable to the appreciation of U.S. dollar against New Taiwan dollar.
Net gain on valuation of financial assets and liabilities was NT$2,878 million.
Net gain on equity-method investments was NT$358 million.
Other net non-operating income of NT$480 million was primarily attributable to miscellaneous income. Total non-operating expense for the quarter was NT$68 million.

l Income before tax was NT$23,615 million for 3Q22, compared to NT$21,136 million in 2Q22. We recorded income tax expenses of NT$5,046 million for the quarter, compared to NT$4,479 million in 2Q22.

l In 3Q22, net income attributable to shareholders of the parent was NT$17,465 million, compared to NT$14,176 million in 3Q21 and NT$15,988 million in 2Q22.

l Our total number of shares outstanding at the end of the quarter was 4,364,218,532, including treasury stock owned by our subsidiaries in 3Q22. Our 3Q22 basic earnings per share of NT$4.03 (or US$0.268 per ADS) were based on 4,330,471,737 weighted average numbers of shares outstanding in 3Q22. Our 3Q22 diluted earnings per share of NT$3.92 (or US$0.260 per ADS) were based on 4,373,878,048 weighted average number of shares outstanding in 3Q22.

3Q22 Results Highlights – ATM

l Net revenues were NT$98,831 million, up by 10% year-over-year (or up by 19% year-over-year on pro forma basis) and up by 4% sequentially.

l Cost of revenues was NT$ 69,999 million for the quarter, up by 4% sequentially.

Raw material cost totaled NT$28,072 million for the quarter, representing 28% of the total net revenues.
Labor cost totaled NT$14,383 million for the quarter, representing 15% of the total net revenues.
Depreciation, amortization and rental expenses totaled NT$11,574 million for the quarter.

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l Gross margin stayed flat, which was 29.2% in both 3Q22 and 2Q22.

l Operating margin was 18.9% in both 3Q22 and 2Q22.

3Q22 Results Highlights – EMS

l Net revenues were NT$90,665 million, up by 37% sequentially.

l Cost of revenues for the quarter was NT$81,467 million, up by 37% sequentially.

Raw material cost totaled NT$73,999 million for the quarter, representing 82% of the total net revenues.
Labor cost totaled NT$2,799 million for the quarter, representing 3% of the total net revenues.
Depreciation, amortization and rental expenses totaled NT$967 million for the quarter.

l Gross margin increased by 0.1 percentage points to 10.1% in 3Q22 from 10.0% in 2Q22.

l Operating margin was 5.7% in 3Q22, compared to 4.0% in 2Q22.

LIQUIdiTY AND CAPITAL RESOURCES

l Capital expenditures in 3Q22 totaled US$400 million, of which US$197 million were used in packaging operations, US$134 million in testing operations, US$50 million in EMS operations and US$19 million in interconnect materials operations and others.

l Total unused credit lines amounted to NT$296,099 million as of September 30, 2022.

l Current ratio was 1.22 and net debt to equity ratio was 0.53 as of September 30, 2022.

l Total number of employees was 99,104 as of September 30, 2022, compared to 97,800 as of June 30, 2022.

Business Review

Customers

ATM Basis

l Our five largest customers together accounted for approximately 45% of our total net revenues in 3Q22, compared to 46% in 2Q22. Two customers each accounted for more than 10% of our total net revenues in 3Q22 individually.

l Our top 10 customers contributed 59% of our total net revenues in both 3Q22 and 2Q22.

l Our customers that are integrated device manufacturers or IDMs accounted for 33% of our total net revenues in 3Q22, compared to 30% in 2Q22.

EMS Basis

l Our five largest customers together accounted for approximately 74% of our total net revenues in 3Q22, compared to 66% in 2Q22. One customer accounted for more than 10% of our total net revenues in 3Q22.

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l Our top 10 customers contributed 81% of our total net revenues in 3Q22, compared to 75% in 2Q22.

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 2021 Annual Report on Form 20-F filed on March 29, 2022.

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Supplemental Financial Information

(Unaudited)

Consolidated Operations

| | 3Q22 | 2Q22 | 3Q21 | Pro
Forma Basis — 3Q21 |
| --- | --- | --- | --- | --- |
| EBITDA
(NT$ million) | 38,601 | 35,211 | 32,655 | 30,806 |

ATM Operations

| | 3Q22 | 2Q22 | 3Q21 | Pro
Forma Basis — 3Q21 |
| --- | --- | --- | --- | --- |
| Net
Revenues (NT$ million) | 98,831 | 94,998 | 90,092 | 83,321 |
| Revenue
by Application | | | | |
| Communication | 53% | 52% | 51% | 53% |
| Computing | 16% | 16% | 15% | 15% |
| Automotive,
Consumer & Others | 31% | 32% | 34% | 32% |
| Revenue
by Type | | | | |
| Bumping,
Flip Chip, WLP & SiP | 42% | 43% | 36% | 39% |
| Wirebonding | 34% | 35% | 39% | 37% |
| Others | 7% | 6% | 8% | 7% |
| Testing | 15% | 15% | 15% | 15% |
| Material | 2% | 1% | 2% | 2% |
| Capacity
& EBITDA | | | | |
| CapEx
(US$ million)* | 348 | 461 | 407 | 364 |
| EBITDA
(NT$ million) | 31,657 | 30,940 | 28,588 | 26,739 |
| Number
of Wirebonders | 25,887 | 25,876 | 29,943 | 25,723 |
| Number
of Testers | 5,406 | 5,194 | 6,149 | 4,652 |

EMS Operations

	3Q22	2Q22	3Q21
Net
Revenues (NT$ million)	90,665	66,218	61,127
Revenue
by Application
Communication	37%	35%	38%
Computing	9%	13%	10%
Consumer	36%	28%	33%
Industrial	11%	15%	12%
Automotive	6%	8%	5%
Others	1%	1%	2%
Capacity
CapEx
(US$ million)*	50	53	60

* Capital expenditure excludes building construction costs.

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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 | | | | For
the nine months ended | | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| | | | | Pro
Forma Basis | | | Pro
Forma Basis |
| | Sep. 30 2022 | Jun. 30 2022 | Sep.
30 2021 | Sep.
30 2021 | Sep.
30 2022 | Sep.
30 2021 | Sep.
30 2021 |
| Net revenues | | | | | | | |
| Packaging | 80,541 | 78,394 | 73,996 | 68,287 | 227,318 | 197,178 | 181,548 |
| Testing | 14,942 | 13,760 | 13,416 | 12,353 | 41,285 | 36,222 | 33,212 |
| EMS | 90,660 | 66,213 | 61,116 | 61,116 | 218,036 | 157,947 | 157,947 |
| Others | 2,483 | 2,072 | 2,137 | 2,137 | 6,817 | 5,714 | 5,714 |
| Total net revenues | 188,626 | 160,439 | 150,665 | 143,893 | 493,456 | 397,061 | 378,421 |
| Cost of revenues | (150,654) | (126,051) | (119,881) | (114,642) | (392,625) | (319,586) | (304,832) |
| Gross profit | 37,972 | 34,388 | 30,784 | 29,251 | 100,831 | 77,475 | 73,589 |
| Operating expenses | | | | | | | |
| Research
and development | (6,262) | (5,795) | (5,495) | (5,272) | (17,419) | (15,340) | (14,699) |
| Selling,
general and administrative | (8,027) | (7,987) | (6,863) | (6,516) | (23,010) | (19,626) | (18,628) |
| Total operating expenses | (14,289) | (13,782) | (12,358) | (11,788) | (40,429) | (34,966) | (33,327) |
| Operating income | 23,683 | 20,606 | 18,426 | 17,463 | 60,402 | 42,509 | 40,262 |
| Net
non-operating income and expenses | | | | | | | |
| Interest
expense - net | (966) | (702) | (562) | (556) | (2,240) | (1,703) | (1,672) |
| Foreign
exchange gain (loss) | (2,818) | (1,301) | 66 | 55 | (5,223) | 899 | 871 |
| Gain
(loss) on valuation of financial assets and liabilities | 2,878 | 1,543 | (349) | (359) | 5,827 | (1,008) | (1,057) |
| Gain
on equity-method investments | 358 | 486 | 414 | 414 | 1,043 | 782 | 782 |
| Others | 480 | 504 | 479 | 412 | 1,605 | 1,520 | 1,308 |
| Total
non-operating income and expenses | (68) | 530 | 48 | (34) | 1,012 | 490 | 232 |
| Income before tax | 23,615 | 21,136 | 18,474 | 17,429 | 61,414 | 42,999 | 40,494 |
| Income tax expense | (5,046) | (4,479) | (3,630) | (3,505) | (12,803) | (8,729) | (8,440) |
| Income
from operations and before non-controlling interests | 18,569 | 16,657 | 14,844 | 13,924 | 48,611 | 34,270 | 32,054 |
| Non-controlling interests | (1,104) | (669) | (668) | (668) | (2,251) | (1,278) | (1,278) |
| Net income attributable
to shareholders
of the parent | 17,465 | 15,988 | 14,176 | 13,256 | 46,360 | 32,992 | 30,776 |
| Per
share data: | | | | | | | |
| Earnings
per share | | | | | | | |
| –
Basic | NT$4.03 | NT$3.69 | NT$3.29 | NT$3.07 | NT$10.74 | NT$7.66 | NT$7.14 |
| –
Diluted | NT$3.92 | NT$3.61 | NT$3.20 | NT$2.99 | NT$10.34 | NT$7.43 | NT$6.92 |
| Earnings
per equivalent ADS | | | | | | | |
| –
Basic | US$0.268 | US$0.253 | US$0.236 | US$0.221 | US$0.739 | US$0.546 | US$0.509 |
| –
Diluted | US$0.260 | US$0.247 | US$0.230 | US$0.215 | US$0.711 | US$0.530 | US$0.494 |
| Number
of weighted average shares used in diluted EPS calculation (in thousands) | 4,373,878 | 4,375,107 | 4,370,715 | 4,370,715 | 4,368,634 | 4,370,312 | 4,370,312 |
| FX (NTD/USD) | 30.10 | 29.26 | 27.79 | 27.79 | 29.07 | 28.04 | 28.04 |

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ASE Technology Holding Co., Ltd.

Summary of ATM Statement of Income Data

(In NT$ millions)

(Unaudited)

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ASE Technology Holding Co., Ltd.

Summary of EMS Statement of Income Data

(In NT$ millions)

(Unaudited)

| | For
the three months ended — Sep. 30 2022 | Jun. 30 2022 | Sep. 30 2021 | For
the nine months ended — Sep. 30 2022 | Sep.
30 2021 |
| --- | --- | --- | --- | --- | --- |
| Net revenues | 90,665 | 66,218 | 61,127 | 218,049 | 157,974 |
| Cost of revenues | (81,467) | (59,568) | (55,244) | (196,821) | (143,604) |
| Gross profit | 9,198 | 6,650 | 5,883 | 21,228 | 14,370 |
| Operating expenses | | | | | |
| Research
and development | (1,392) | (1,380) | (1,270) | (4,021) | (3,641) |
| Selling,
general and administrative | (2,676) | (2,603) | (1,955) | (7,210) | (5,622) |
| Total operating expenses | (4,068) | (3,983) | (3,225) | (11,231) | (9,263) |
| Operating income | 5,130 | 2,667 | 2,658 | 9,997 | 5,107 |

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ASE Technology Holding Co., Ltd.

Summary of Consolidated Balance Sheet Data

(In NT$ millions)

(Unaudited)

| | As
of Sep. 30, 2022 | As
of Jun. 30, 2022 |
| --- | --- | --- |
| Current assets | | |
| Cash and cash equivalents | 52,358 | 72,846 |
| Financial assets – current | 9,667 | 6,136 |
| Notes and accounts receivable | 140,178 | 116,617 |
| Inventories | 101,287 | 94,661 |
| Others | 29,239 | 28,503 |
| Total current assets | 332,729 | 318,763 |
| Financial
assets – non-current & Investments – equity method | 22,926 | 22,356 |
| Property, plant and equipment | 264,508 | 254,784 |
| Right-of-use assets | 11,822 | 10,853 |
| Intangible assets | 73,590 | 74,300 |
| Others | 32,254 | 32,023 |
| Total assets | 737,829 | 713,079 |
| Current liabilities | | |
| Short-term borrowings | 78,056 | 60,722 |
| Current
portion of bonds payable & Current portion of long-term borrowings | 8,157 | 11,835 |
| Notes and accounts payable | 104,286 | 86,534 |
| Others | 83,248 | 111,136 |
| Total current liabilities | 273,747 | 270,227 |
| Bonds payable | 40,534 | 40,923 |
| Long-term borrowings 2 | 89,273 | 97,367 |
| Other liabilities | 28,625 | 26,251 |
| Total liabilities | 432,179 | 434,768 |
| Equity attributable to shareholders of the parent | 288,361 | 263,039 |
| Non-controlling interests | 17,289 | 15,272 |
| Total liabilities & shareholders’ equity | 737,829 | 713,079 |
| Current Ratio | 1.22 | 1.18 |
| Net Debt to Equity Ratio | 0.53 | 0.50 |

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

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ASE Technology Holding Co., Ltd.

Summary of Consolidated Statement of Cash Flow Data

(In NT$ millions)

(Unaudited)

| | For
the three months ended — Sep. 30 | Jun.
30 | Sep.
30 | Sep. 30 | Sep. 30 |
| --- | --- | --- | --- | --- | --- |
| | 2022 | 2022 | 2021 | 2022 | 2021 |
| Cash Flows
from Operating Activities | | | | | |
| Profit
before income tax | 23,615 | 21,136 | 18,474 | 61,414 | 42,999 |
| Depreciation
& amortization | 13,947 | 13,749 | 13,864 | 41,199 | 40,454 |
| Other
operating activities items | (18,944) | (19,858) | (17,505) | (41,788) | (34,638) |
| Net cash
generated from operating activities | 18,618 | 15,027 | 14,833 | 60,825 | 48,815 |
| Cash Flows
from Investing Activities | | | | | |
| Net payments
for property, plant and equipment | (17,219) | (17,292) | (20,294) | (51,693) | (52,787) |
| Other
investment activities items | 288 | (245) | (139) | (710) | (1,603) |
| Net cash
used in investing activities | (16,931) | (17,537) | (20,433) | (52,403) | (54,390) |
| Cash Flows
from Financing Activities | | | | | |
| Total
net proceeds from (repayment of) borrowings and bonds | 1,111 | (8,980) | 25,319 | (13,179) | 28,279 |
| Dividends
paid | (29,991) | - | (18,083) | (29,991) | (18,083) |
| Other
financing activities items | (228) | (893) | (854) | (1,390) | (263) |
| Net cash
generated from (used in) financing activities | (29,108) | (9,873) | 6,382 | (44,560) | 9,933 |
| Foreign
currency exchange effect | 6,933 | 803 | (350) | 12,423 | (2,477) |
| Net increase
(decrease) in cash and cash equivalents | (20,488) | (11,580) | 432 | (23,715) | 1,881 |
| Cash and
cash equivalents at the beginning of period | 72,846 | 84,426 | 52,987 | 76,073 | 51,538 |
| Cash and
cash equivalents at the end of period | 52,358 | 72,846 | 53,419 | 52,358 | 53,419 |

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