ASE Technology Holding Co., Ltd.

6-K 1 dp197313_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

July 27, 2023

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 ☐

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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

https://www.aseglobal.com

ASE Technology Holding Co., Ltd. Reports Its Unaudited Consolidated Financial Results for the Second Quarter of 2023

Taipei, July 27, 2023 – 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$ 136,275 million for 2Q23, down by 15% year-over-year and up by 4% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$7,740 million, down from NT$15,988 million in 2Q22 and up from NT$5,817 million in 1Q23. Basic earnings per share for the quarter were NT$1.80 (or US$0.118 per ADS), compared to NT$3.69 for 2Q22 and NT$1.36 for 1Q23. Diluted earnings per share for the quarter were NT$1.76 (or US$0.115 per ADS), compared to NT$3.61 for 2Q22 and NT$1.30 for 1Q23.

RESULTS OF OPERATIONS

2Q23 Results Highlights – Consolidated

l 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.

l Cost of revenues was NT$114,534 million for the quarter, up from NT$111,552 million in 1Q23.

Raw material cost totaled NT$70,924 million for the quarter, representing 52% of the total net revenues.
Labor cost totaled NT$14,918 million for the quarter, representing 11% of the total net revenues.
Depreciation, amortization and rental expenses totaled NT$13,069 million for the quarter.

l Gross margin increased by 1.2 percentage points to 16.0% in 2Q23 from 14.8% in 1Q23.

l Operating margin was 6.9% in 2Q23, compared to 5.9% in 1Q23.

l In terms of non-operating items:

Net interest expense was NT$1,100 million.
Net foreign exchange loss was NT$1,188 million, primarily attributable to the appreciation of the U.S. dollar against the New Taiwan dollar.

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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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Net gain on valuation of financial assets and liabilities was NT$1,914 million.
Net gain on equity-method investments was NT$326 million.
Other net non-operating income was NT$747 million, primarily attributable to miscellaneous income. Total non-operating income for the quarter was NT$699 million.

l Income before tax was NT$10,111 million in 2Q23, compared to NT$7,870 million in 1Q23. We recorded income tax expenses of NT$1,914 million for the quarter, compared to NT$1,777 million in 1Q23.

l Net income attributable to shareholders of the parent was NT$7,740 million in 2Q23, compared to NT$15,988 million in 2Q22 and NT$5,817 million in 1Q23.

l Our total number of shares outstanding at the end of the quarter was 4,376,430,787, including treasury stock owned by our subsidiaries in 2Q23. Our 2Q23 basic earnings per share of NT$1.80 (or US$0.118 per ADS) were based on 4,293,489,282 weighted average numbers of shares outstanding in 2Q23. Our 2Q23 diluted earnings per share of NT$1.76 (or US$0.115 per ADS) were based on 4,342,947,820 weighted average number of shares outstanding in 2Q23.

2Q23 Results Highlights – ATM

l Net revenues were NT$76,108 million for the quarter, down by 20% year-over-year and up by 4% sequentially.

l Cost of revenues was NT$ 59,947 million for the quarter, up by 2% sequentially.

Raw material cost totaled NT$22,617 million for the quarter, representing 30% of the total net revenues.
Labor cost totaled NT$12,090 million for the quarter, representing 16% of the total net revenues.
Depreciation, amortization and rental expenses totaled NT$11,764 million for the quarter.

l Gross margin increased by 1.1 percentage points to 21.2% in 2Q23 from 20.1% in 1Q23.

l Operating margin was 9.7% in 2Q23, compared to 8.7% in 1Q23.

2Q23 Results Highlights – EMS

l Net revenues were NT$60,424 million, down by 9% year-over-year and up by 5% sequentially.

l Cost of revenues for the quarter was NT$54,785 million, down by 8% year-over-year and up by 3% sequentially.

Raw material cost totaled NT$48,251 million for the quarter, representing 80% of the total net revenues.
Labor cost totaled NT$2,714 million for the quarter, representing 5% of the total net revenues.
Depreciation, amortization and rental expenses totaled NT$1,040 million for the quarter.

l Gross margin increased by 1.4 percentage points to 9.3% in 2Q23 from 7.9% in 1Q23.

l Operating margin was 3.5% in 2Q23, compared to 2.3% in 1Q23.

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LIQUIdiTY AND CAPITAL RESOURCES

l Capital expenditures in 2Q23 totaled US$209 million, of which US$107 million was used in packaging operations, US$60 million in testing operations, US$33 million in EMS operations and US$9 million in interconnect materials operations and others.

l Total unused credit lines amounted to NT$384,648 million as of June 30, 2023.

l Current ratio was 1.20 and net debt to equity ratio was 0.41 as of June 30, 2023.

l Total number of employees was 93,950 as of June 30, 2023, compared to 94,172 as of March 31, 2023.

Business Review

Customers

ATM Basis

l Our five largest customers together accounted for approximately 41% of our total net revenues in both 2Q23 and 1Q23. One customer accounted for more than 10% of our total net revenues in 2Q23.

l Our top 10 customers contributed 57% of our total net revenues in 2Q23, compared to 56% in 1Q23.

l Our customers that are integrated device manufacturers or IDMs accounted for 33% of our total net revenues in 2Q23, compared to 35% in 1Q23.

EMS Basis

l Our five largest customers together accounted for approximately 72% of our total net revenues in 2Q23, compared to 67% in 1Q23. One customer accounted for more than 10% of our total net revenues in 2Q23.

l Our top 10 customers contributed 79% of our total net revenues in 2Q23, compared to 75% in 1Q23.

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.

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Supplemental Financial Information

(Unaudited)

Consolidated Operations

	2Q23	1Q23	2Q22
EBITDA
(NT$ million)	25,770	23,765	35,211

ATM Operations

	2Q23	1Q23	2Q22
Net
Revenues (NT$ million)	76,108	73,319	94,998
Revenues
by Application
Communication	49%	50%	52%
Computing	18%	17%	16%
Automotive,
Consumer & Others	33%	33%	32%
Revenues
by Type
Bumping,
Flip Chip, WLP & SiP	41%	41%	43%
Wirebonding	34%	34%	35%
Others	7%	8%	6%
Testing	16%	16%	15%
Material	2%	1%	1%
Capacity
& EBITDA
CapEx
(US$ million)*	176	197	461
EBITDA
(NT$ million)	21,643	20,552	30,940
Number
of Wirebonders	25,880	25,799	25,876
Number
of Testers	5,495	5,447	5,194

EMS Operations

	2Q23	1Q23	2Q22
Net
Revenues (NT$ million)	60,424	57,733	66,218
Revenues
by Application
Communication	34%	35%	35%
Computing	8%	8%	13%
Consumer	33%	29%	28%
Industrial	15%	17%	15%
Automotive	8%	9%	8%
Others	2%	2%	1%
Capacity
CapEx
(US$ million)*	33	32	53

* Capital expenditure excludes building construction costs.

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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 — Jun.
30 2023 | Mar.
31 2023 | Jun.
30 2022 | For
the six months ended — Jun.
30 2023 | Jun.
30 2022 |
| --- | --- | --- | --- | --- | --- |
| Net revenues | | | | | |
| Packaging | 61,846 | 60,029 | 78,394 | 121,875 | 146,777 |
| Testing | 12,292 | 11,407 | 13,760 | 23,699 | 26,343 |
| EMS | 60,384 | 57,731 | 66,213 | 118,115 | 127,376 |
| Others | 1,753 | 1,724 | 2,072 | 3,477 | 4,334 |
| Total net
revenues | 136,275 | 130,891 | 160,439 | 267,166 | 304,830 |
| Cost of
revenues | (114,534) | (111,552) | (126,051) | (226,086) | (241,971) |
| Gross profit | 21,741 | 19,339 | 34,388 | 41,080 | 62,859 |
| Operating
expenses | | | | | |
| Research
and development | (6,218) | (5,572) | (5,795) | (11,790) | (11,157) |
| Selling,
general and administrative | (6,111) | (6,072) | (7,987) | (12,183) | (14,983) |
| Total
operating expenses | (12,329) | (11,644) | (13,782) | (23,973) | (26,140) |
| Operating
income | 9,412 | 7,695 | 20,606 | 17,107 | 36,719 |
| Net non-operating
income and expenses | | | | | |
| Interest
expense - net | (1,100) | (1,076) | (702) | (2,176) | (1,274) |
| Foreign
exchange gain (loss) | (1,188) | 545 | (1,301) | (643) | (2,405) |
| Gain
on valuation of financial assets and liabilities | 1,914 | 103 | 1,543 | 2,017 | 2,949 |
| Gain
(loss) on equity-method investments | 326 | (12) | 486 | 314 | 685 |
| Others | 747 | 615 | 504 | 1,362 | 1,125 |
| Total
non-operating income and expenses | 699 | 175 | 530 | 874 | 1,080 |
| Income
before tax | 10,111 | 7,870 | 21,136 | 17,981 | 37,799 |
| Income
tax expense | (1,914) | (1,777) | (4,479) | (3,691) | (7,757) |
| Income
from operations and before non-controlling interests | 8,197 | 6,093 | 16,657 | 14,290 | 30,042 |
| Non-controlling
interests | (457) | (276) | (669) | (733) | (1,147) |
| Net
income attributable to shareholders of the parent | 7,740 | 5,817 | 15,988 | 13,557 | 28,895 |
| Per
share data: | | | | | |
| Earnings
per share | | | | | |
| –
Basic | NT$1.80 | NT$1.36 | NT$3.69 | NT$3.16 | NT$6.71 |
| –
Diluted | NT$1.76 | NT$1.30 | NT$3.61 | NT$3.07 | NT$6.51 |
| Earnings
per equivalent ADS | | | | | |
| –
Basic | US$0.118 | US$0.089 | US$0.253 | US$0.207 | US$0.470 |
| –
Diluted | US$0.115 | US$0.086 | US$0.247 | US$0.202 | US$0.456 |
| Number
of weighted average shares used in diluted EPS calculation (in thousand shares) | 4,342,948 | 4,336,965 | 4,375,107 | 4,341,706 | 4,359,944 |
| FX (NTD/USD) | 30.57 | 30.40 | 29.26 | 30.49 | 28.56 |

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ASE Technology Holding Co., Ltd.

Summary of ATM Statement of Income Data

(In NT$ million)

(Unaudited)

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ASE Technology Holding Co., Ltd.

Summary of EMS Statement of Income Data

(In NT$ million)

(Unaudited)

| | For
the three months ended — Jun.
30 2023 | Mar.
31 2023 | Jun.
30 2022 | For
the six months ended — Jun.
30 2023 | Jun.
30 2022 |
| --- | --- | --- | --- | --- | --- |
| Net revenues | | | | | |
| Total net
revenues | 60,424 | 57,733 | 66,218 | 118,157 | 127,384 |
| Cost of
revenues | (54,785) | (53,166) | (59,568) | (107,951) | (115,354) |
| Gross profit | 5,639 | 4,567 | 6,650 | 10,206 | 12,030 |
| Operating
expenses | | | | | |
| Research
and development | (1,527) | (1,324) | (1,380) | (2,851) | (2,629) |
| Selling,
general and administrative | (2,023) | (1,918) | (2,603) | (3,941) | (4,534) |
| Total
operating expenses | (3,550) | (3,242) | (3,983) | (6,792) | (7,163) |
| Operating
income | 2,089 | 1,325 | 2,667 | 3,414 | 4,867 |

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ASE Technology Holding Co., Ltd.

Summary of Consolidated Balance Sheet Data

(In NT$ million)

(Unaudited)

| | As
of Jun. 30, 2023 | As
of Mar. 31, 2023 |
| --- | --- | --- |
| Current assets | | |
| Cash and cash
equivalents | 59,351 | 62,056 |
| Financial
assets – current | 7,040 | 6,317 |
| Trade receivables | 98,671 | 91,514 |
| Inventories | 77,568 | 85,667 |
| Others | 28,400 | 25,717 |
| Total current assets | 271,030 | 271,271 |
| Financial
assets – non-current & Investments – equity method | 26,761 | 24,352 |
| Property, plant and equipment | 262,604 | 266,005 |
| Right-of-use assets | 10,691 | 10,882 |
| Intangible assets | 71,298 | 72,101 |
| Others | 30,137 | 30,829 |
| Total assets | 672,521 | 675,440 |
| Current liabilities | | |
| Short-term
borrowings | 37,798 | 45,158 |
| Current
portion of bonds payable & Current portion of long-term borrowings | 18,191 | 11,999 |
| Trade payables | 67,225 | 63,552 |
| Others | 102,551 | 113,650 |
| Total current liabilities | 225,765 | 234,359 |
| Bonds payable | 33,462 | 38,837 |
| Long-term borrowings 2 | 90,224 | 86,752 |
| Other liabilities | 25,653 | 25,766 |
| Total liabilities | 375,104 | 385,714 |
| Equity attributable to shareholders
of the parent | 278,624 | 270,651 |
| Non-controlling interests | 18,793 | 19,075 |
| Total liabilities & shareholders’
equity | 672,521 | 675,440 |
| Current ratio | 1.20 | 1.16 |
| Net debt to equity ratio | 0.41 | 0.42 |

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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$ million)

(Unaudited)

| | For
the three months ended — Jun.
30 2023 | Mar.
31 2023 | Jun.
30 2022 | For
the six months ended — Jun.
30 2023 | Jun.
30 2022 |
| --- | --- | --- | --- | --- | --- |
| Cash
Flows from Operating Activities: | | | | | |
| Profit before
income tax | 10,111 | 7,870 | 21,136 | 17,981 | 37,799 |
| Depreciation
& amortization | 14,488 | 14,439 | 13,749 | 28,927 | 27,252 |
| Other operating
activities items | (8,643) | 8,449 | (19,858) | (194) | (22,844) |
| Net
cash generated from operating activities | 15,956 | 30,758 | 15,027 | 46,714 | 42,207 |
| Cash
Flows from Investing Activities: | | | | | |
| Net
payments for property, plant and equipment | (12,147) | (15,206) | (17,292) | (27,353) | (34,474) |
| Other
investment activities items | (2,285) | 415 | (245) | (1,870) | (998) |
| Net
cash used in investing activities | (14,432) | (14,791) | (17,537) | (29,223) | (35,472) |
| Cash
Flows from Financing Activities: | | | | | |
| Total
net proceeds from (repayment of) borrowings | (3,395) | (11,621) | (8,980) | (15,016) | (14,290) |
| Other financing
activities items | (1,055) | 116 | (893) | (939) | (1,162) |
| Net
cash used in financing activities | (4,450) | (11,505) | (9,873) | (15,955) | (15,452) |
| Foreign
currency exchange effect | 481 | (446) | 803 | 35 | 5,490 |
| Net
increase (decrease) in cash and cash equivalents | (2,445) | 4,016 | (11,580) | 1,571 | (3,227) |
| Cash
and cash equivalents at the beginning of period | 62,056 | 58,040 | 84,426 | 58,040 | 76,073 |
| Cash
and cash equivalents at the end of period | 59,611 | 62,056 | 72,846 | 59,611 | 72,846 |
| Cash
and cash equivalents in the consolidated balance sheet | 59,351 | 62,056 | 72,846 | 59,351 | 72,846 |
| Cash
and cash equivalents included in disposal groups held for sale | 260 | - | - | 260 | - |

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