PR Newswire | Apr 28, 2021 01:45AM EDT

Results for the First Quarter of 2021

04/28 00:45 CDT

ASE Technology Holding Co., Ltd. Reports Unaudited Consolidated Financial Results for the First Quarter of 2021 TAIPEI, Taiwan, R.O.C., April 28, 2021

TAIPEI, Taiwan, R.O.C., April 28, 2021 /PRNewswire/ -- 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 revenues[1] of NT$119,470 million for 1Q21, up by 23% year-over-year and down by 20% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$8,565 million, up from a net income attributable to shareholders of the parent of NT$3,899 million in 1Q20 and down from a net income attributable to shareholders of the parent of NT$10,044 million in 4Q20. Basic earnings per share for the quarter were NT$1.99 (or US$0.141 per ADS), compared to NT$0.92 for 1Q20 and NT$2.35 for 4Q20. Diluted earnings per share for the quarter were NT$1.94 (or US$0.137 per ADS), compared to NT$0.89 for 1Q20 and NT$2.30 for 4Q20.

RESULTS OF OPERATIONS

1Q21 Results Highlights -- Consolidated

* Net revenue contribution from packaging operations, testing operations, EMS operations and others, each represented approximately 50%, 9%, 40% and 1%, respectively, of total net revenues for the quarter. * Cost of revenue was NT$97,442 million for the quarter, down from NT$125,578 million in 4Q20. * Raw material cost totaled NT$55,635 million for the quarter, representing 47% of total net revenues. * Labor cost totaled NT$15,788 million for the quarter, representing 13% of total net revenues. * Depreciation, amortization and rental expenses totaled NT$12,045 million for the quarter.

* Gross margin increased 2.7 percentage points to 18.4% in 1Q21 from 15.7% in 4Q20. * Operating margin was 9.3% in 1Q21, compared to 7.6% in 4Q20. * In terms of non-operating items: * Net interest expense was NT$572 million. * Net foreign exchange loss of NT$224 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$391 million. * Net gain on equity-method investments was NT$149 million. * Other net non-operating income of NT$528 million was primarily attributable to miscellaneous income. Total non-operating income for the quarter was NT$272 million.

* Income before tax was NT$11,338 million for 1Q21, compared to NT$12,604 million in 4Q20. We recorded income tax expenses of NT$2,490 million for the quarter, compared to NT$1,839 million in 4Q20. * In 1Q21, net income attributable to shareholders of the parent was NT$8,565 million, compared to NT$3,899 million in 1Q20 and NT$10,044 million in 4Q20. * Our total number of shares outstanding at the end of the quarter was 4,379,428,032, including treasury stock owned by our subsidiaries. Our 1Q21 basic earnings per share of NT$1.99 (or US$0.141 per ADS) were based on 4,303,255,776 weighted average numbers of shares outstanding in 1Q21. Our 1Q21 diluted earnings per share of NT$1.94 (or US$0.137 per ADS) were based on 4,357,714,464 weighted average number of shares outstanding in 1Q21.

1Q21 Results Highlights - ATM[2]

* Cost of revenues was NT$55,760 million for the quarter, down by 1% sequentially. * Raw material cost totaled NT$18,296 million for the quarter, representing 25% of total net revenues. * Labor cost totaled NT$13,349 million for the quarter, representing 18% of total net revenues. * Depreciation, amortization and rental expenses totaled NT$11,104 million for the quarter.

* Gross margin increased 1.8 percentage points to 24.4% in 1Q21 from 22.6% in 4Q20. * Operating margin was 13.4% in 1Q21, compared to 11.0% in 4Q20.

1Q21 Results Highlights - EMS

* Cost of revenues for the quarter was NT$43,540 million, down by 40% sequentially. * Raw material cost totaled NT$37,227 million for the quarter, representing 78% of total net revenues. * Labor cost totaled NT$2,342 million for the quarter, representing 5% of total net revenues. * Depreciation, amortization and rental expenses totaled NT$813 million for the quarter.

* Gross margin decreased 0.1 percentage points to 8.7% in 1Q21 from 8.8% in 4Q20. * Operating margin was 2.8% in 1Q21, compared to 4.4% in 4Q20.

LIQUIDITY AND CAPITAL RESOURCES

* Capital expenditures in 1Q21 totaled US$471 million, of which US$337 million were used in packaging operations, US$118 million in testing operations, US$11 million in EMS operations and US$5 million in interconnect materials operations and others. * As of March 31, 2021, total unused credit lines amounted to NT$255,198 million. * Current ratio was 1.44 and net debt to equity ratio was 0.61 as of March 31, 2021. * Total number of employees was 101,785 as of March 31, 2021, compared to 101,981 as of December 31, 2020.

BUSINESS REVIEW

Customers

ATM CONSOLIDATED BASIS

* Our five largest customers together accounted for approximately 44% of our total net revenues both in 1Q21 and 4Q20. Two customers each accounted for more than 10% of our total net revenues in 1Q21 individually. * Our top 10 customers contributed 55% of our total net revenues both in 1Q21 and 4Q20. * Our customers that are integrated device manufacturers or IDMs accounted for 31% of our total net revenues in 1Q21, compared to 32% in 4Q20.

EMS BASIS

* Our five largest customers together accounted for approximately 73% of our total net revenues in 1Q21, compared to 86% in 4Q20. One customer accounted for more than 10% of our total net revenues in 1Q21. * Our top 10 customers contributed 80% of our total net revenues in 1Q21, compared to 90% in 4Q20.

About ASE Technology Holding Co., Ltd.

ASEH isthe 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, breakthroughinnovations, 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 moreinformation, 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 presentation. 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 presentation. 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 2020 Annual Report on Form 20-F filed on April 6, 2021.

Supplemental Financial Information

Consolidated Operations

1Q/21 4Q/20 1Q/20

EBITDA (NT$ Millions) 24,940 26,130 19,061



ATM Consolidated Operations

1Q/21 4Q/20 1Q/20

Net Revenues (NT$ Millions) 73,767 72,752 66,209

Revenues by Application

Communication 50% 52% 54%

Computing 14% 14% 15%

Automotive, Consumer & Others 36% 34% 31%

Revenues by Type

Bumping, Flip Chip, WLP & SiP 34% 35% 38%

Wirebonding 40% 39% 36%

Discrete and Others 9% 9% 7%

Testing 15% 15% 17%

Material 2% 2% 2%

Capacity & EBITDA

CapEx (US$ Millions)* 460 359 394

EBITDA (NT$ Millions) 22,566 21,822 17,693

Number of Wirebonders 27,574 26,461 24,780

Number of Testers 5,862 5,680 5,554



EMS Operations

1Q/21 4Q/20 1Q/20

Net Revenues (NT$ Millions) 47,693 79,149 32,727

Revenues by End Application

Communication 39% 45% 36%

Computing & Storage 7% 4% 14%

Consumer 33% 39% 33%

Industrial 14% 8% 11%

Automotive 5% 3% 6%

Others 2% 1% 0%

Capacity

CapEx (US$ Millions)* 11 19 15

* 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 Dec. 31 Mar. 31 2021 2020 2020

Net revenues:

Packaging 59,033 57,260 51,613

Testing 11,130 10,667 11,563

EMS 47,684 79,141 32,721

Others 1,623 1,809 1,460

Total net revenues 119,470 148,877 97,357



Cost of revenues (97,442) (125,578)(81,201)

Gross profit 22,028 23,299 16,156



Operating expenses:

Research and development (4,769) (4,929) (4,609)

Selling, general and administrative (6,193) (7,124) (5,484)

Total operating expenses (10,962) (12,053) (10,093)

Operating income 11,066 11,246 6,063



Non-operating (expenses) income:

Interest expense, net (572) (592) (893)

Foreign exchange gain (loss) (224) 51 (324)

Gain (loss) on valuation of financial assets 391 165 186 and liabilities

Gain (loss) on equity-method investments 149 169 (39)

Others 528 1,565 244

Total non-operating income (expenses) 272 1,358 (826)

Income before tax 11,338 12,604 5,237



Income tax expense (2,490) (1,839) (1,175)

Income from continuing operations and 8,848 10,765 4,062 before non-controlling interest

Non-controlling interest (283) (721) (163)



Net income attributable to shareholders of the parent 8,565 10,044 3,899



Per share data:

Earnings (losses) per share

- Basic NT$1.99 NT$2.35 NT$0.92

- Diluted NT$1.94 NT$2.30 NT$0.89



Earnings (losses) per equivalent ADS

- Basic US$0.141 US$0.163 US$0.061

- Diluted US$0.137 US$0.160 US$0.060



Number of weighted average shares used in 4,357,7144,295,9514,280,990 diluted EPS calculation (in thousands)



FX (NTD/USD) 28.30 28.78 30.00

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 Dec. 31 Mar. 31 2021 2020 2020

Net revenues:

Packaging 61,545 60,825 53,600

Testing 11,131 10,667 11,566

Direct Material 1,044 1,229 1,014

Others 47 31 29

Total net revenues 73,767 72,752 66,209



Cost of revenues (55,760)(56,274)(52,875)

Gross profit 18,007 16,478 13,334



Operating expenses:

Research and development (3,697) (3,882) (3,648)

Selling, general and administrative (4,392) (4,594) (4,114)

Total operating expenses (8,089) (8,476) (7,762)

Operating income 9,918 8,002 5,572



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 Dec. 31 Mar. 31 2021 2020 2020



Net revenues 47,693 79,149 32,727



Cost of revenues (43,540)(72,153)(29,679)

Gross profit 4,153 6,996 3,048



Operating expenses:

Research and development (1,097) (1,073) (983)

Selling, general and administrative (1,723) (2,460) (1,294)

Total operating expenses (2,820) (3,533) (2,277)

Operating income 1,333 3,463 771



ASE Technology Holding Co., Ltd.

Summary of Consolidated Balance Sheet Data

(In NT$ millions)

(Unaudited)

As of Mar. 31, As of Dec. 31, 2021 2020

Current assets:

Cash and cash equivalents 73,783 51,538

Financial assets - current 5,114 4,894

Notes and accounts receivable 81,726 91,834

Inventories 66,949 61,988

Others 14,629 13,759

Total current assets 242,201 224,013

Financial assets - non-current & Investments - equity 18,797 17,041 method

Property plant and equipment 236,865 233,207

Right-of-use assets 8,953 8,621

Intangible assets 79,942 80,930

Others 19,471 19,279

Total assets 606,229 583,091

Current liabilities:

Short-term borrowings 41,186 34,598

Current portion of bonds payable & Current portion of long-term borrowings 8,133 11,220

Notes and accounts payable 62,059 73,268

Others 56,472 52,811

Total current liabilities 167,850 171,897

Bonds payable 48,457 49,254

Long-term borrowings^[3] 124,247 108,170

Other liabilities 19,570 19,513

Total liabilities 360,124 348,834

Equity attributable to shareholders of the 229,758 218,635parent

Non-controlling interests 16,347 15,622

Total liabilities & shareholders' equity 606,229 583,091

Current Ratio 1.44 1.30

Net Debt to Equity Ratio 0.61 0.65

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

2021 2020 2020

Cash Flows from Operating Activities:

Income before tax 11,338 12,604 5,237

Depreciation & amortization 13,046 12,764 12,687

Other operating activities items (8,633) 2,754 (4,476)

Net cash generated from operating activities 15,751 28,122 13,448

Cash Flows from Investing Activities:

Net payments for property, plant and (14,053) (15,139) (13,605)equipment

Other investment activities items (205) (4,859) (205)

Net cash used in investing activities (14,258) (19,998) (13,810)

Cash Flows from Financing Activities:

Net proceeds from (repayment of) loans 19,600 (15,686) 13,890

Other financing activities items 1,613 989 194

Net cash generated from (used in) financing 21,213 (14,697) 14,084activities

Foreign currency exchange effect (461) 638 (24)

Net increase (decrease) in cash and cash 22,245 (5,935) 13,698equivalents

Cash and cash equivalents at the beginning of 51,538 55,814 60,131period

Cash and cash equivalents at the end of period 73,783 49,879 73,829

Cash and cash equivalents in the consolidated 73,783 51,538 73,829balance sheet

Cash and cash equivalents included in disposal - (1,659) -groups held for sale

[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.

[2] ATM stands for Semiconductor Assembly, Testing and Material.

[3] Long-term borrowings include long-term loans and bills payable.

Investor Relations Contact:ir@aseglobal.comTel: +886.2.6636.5678 http://www.aseglobal.com

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SOURCE ASE Technology Holding Co., Ltd.