ASE Technology Holding Co., Ltd. Reports Unaudited Consolidated Financial Results for the Fourth Quarter and the Full Year of 2021

Rhea-AI Summary

ASE Technology Holding Co., Ltd. (TAIEX: 3711, NYSE: ASX) reported a robust 4Q21 with unaudited net revenues of NT$172,936 million, a 16% year-over-year increase, and net income of NT$30,916 million, up from NT$10,044 million in 4Q20. Basic EPS reached NT$7.20 (US$0.518), significantly higher than NT$2.35 in 4Q20. For the full year 2021, net revenues totaled NT$569,997 million, a 20% increase, with net income of NT$63,908 million. Despite a decline in gross margin to 19.0%, the overall financial performance showed strong growth, driven by increased production capacity and operational efficiency.

Positive

• 4Q21 net revenues of NT$172,936 million, up 16% YoY.
• Net income for 4Q21 reached NT$30,916 million, significantly up from NT$10,044 million in 4Q20.
• Basic EPS for 4Q21 was NT$7.20 (US$0.518), a substantial rise from NT$2.35 in 4Q20.
• 2021 net revenues totaled NT$569,997 million, up 20% from 2020.
• Full-year net income was NT$63,908 million, compared to NT$27,593 million in 2020.

Negative

• Gross margin decreased to 19.0% in 4Q21 from 20.4% in 3Q21.
• Operating margin fell to 11.3% in 4Q21, down from 12.2% in 3Q21.

TAIPEI, Taiwan, R.O.C., Feb. 10, 2022 /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$172,936 million for 4Q21, up by 16% year-over-year and up by 15% sequentially.  Net income attributable to shareholders of the parent for the quarter totaled NT$30,916 million, up from a net income attributable to shareholders of the parent of NT$10,044 million in 4Q20 and up from a net income attributable to shareholders of the parent of NT$14,176 million in 3Q21.  Basic earnings per share for the quarter were NT$7.20 (or US$0.518 per ADS), compared to NT$2.35 for 4Q20 and NT$3.29 for 3Q21.  Diluted earnings per share for the quarter were NT$6.99 (or US$0.504 per ADS), compared to NT$2.30 for 4Q20 and NT$3.20 for 3Q21.

For the full year of 2021, the Company reported unaudited net revenues of NT$569,997 million and net income attributable to shareholders of the parent of NT$63,908 million.  Basic earnings per share for the full year of 2021 were NT$14.84 (or US$1.061 per ADS).  Diluted earnings per share for the full year of 2021 were NT$14.40 (or US$1.029 per ADS).

RESULTS OF OPERATIONS

4Q21 Results Highlights – Consolidated

• Net revenue contribution from packaging operations, testing operations, EMS operations and others, each represented approximately 44%, 8%, 47% and 1%, respectively, of total net revenues for the quarter.
• Cost of revenue was NT$140,042 million for the quarter, up from NT$119,881 million in 3Q21.
  - Raw material cost totaled NT$93,182 million for the quarter, representing 54% of total net revenues.
  - Labor cost totaled NT$16,547 million for the quarter, representing 10% of total net revenues.
  - Depreciation, amortization and rental expenses totaled NT$12,842 million for the quarter.
• Gross margin decreased 1.4 percentage points to 19.0% in 4Q21 from 20.4% in 3Q21.
• Operating margin was 11.3% in 4Q21, compared to 12.2% in 3Q21.
• In terms of non-operating items:
  - Net interest expense was NT$553 million.
  - Net foreign exchange gain of NT$496 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$483 million.
  - Net gain on equity-method investments was NT$192 million.
  - Other net non-operating income of NT$18,069 million was primarily attributable to gain on disposal of subsidiaries and miscellaneous income. Total non-operating income for the quarter was NT$17,721 million.
• Income before tax was NT$37,336 million for 4Q21, compared to NT$18,474 million in 3Q21. We recorded income tax expenses of NT$5,592 million for the quarter, compared to NT$3,630 million in 3Q21.
• In 4Q21, net income attributable to shareholders of the parent was NT$30,916 million, compared to NT$10,044 million in 4Q20 and NT$14,176 million in 3Q21.
• Our total number of shares outstanding at the end of the quarter was 4,408,018,732, including treasury stock owned by our subsidiaries and stocks repurchased in 4Q21. Our 4Q21 basic earnings per share of NT$7.20 (or US$0.518 per ADS) were based on 4,294,230,371 weighted average numbers of shares outstanding in 4Q21. Our 4Q21 diluted earnings per share of NT$6.99 (or US$0.504 per ADS) were based on 4,343,537,564 weighted average number of shares outstanding in 4Q21.

4Q21 Results Highlights – ATM^[2]

• Cost of revenues was NT$66,217 million for the quarter, up by 1% sequentially.
  - Raw material cost totaled NT$25,423 million for the quarter, representing 28% of total net revenues.
  - Labor cost totaled NT$13,961 million for the quarter, representing 15% of total net revenues.
  - Depreciation, amortization and rental expenses totaled NT$11,714 million for the quarter.
• Gross margin increased 0.6 percentage points to 28.0% in 4Q21 from 27.4% in 3Q21.
• Operating margin was 17.5% in 4Q21, compared to 17.3% in 3Q21.

4Q21 Results Highlights – EMS

• Cost of revenues for the quarter was NT$74,436 million, up by 35% sequentially.
  - Raw material cost totaled NT$67,610 million for the quarter, representing 83% of total net revenues.
  - Labor cost totaled NT$2,468 million for the quarter, representing 3% of total net revenues.
  - Depreciation, amortization and rental expenses totaled NT$893 million for the quarter.
• Gross margin decreased 0.9 percentage points to 8.7% in 4Q21 from 9.6% in 3Q21.
• Operating margin was 4.4% in 4Q21, compared to 4.3% in 3Q21.

2021 Full-Year Results Highlights – Consolidated

• Net revenues for the full year of 2021 amounted to NT$569,997 million, up by 20% from 2020. The revenue contribution from packaging operations, testing operations, EMS operations and others ,each represented approximately 48%, 9%, 42% and 1%, respectively, of total net revenues for the year.
• Cost of revenue for the year of 2021 was NT$459,628 million, compared with NT$398,994 million in 2020.
  - Raw material cost totaled NT$280,789 million for the year, representing 49% of total net revenues.
  - Labor cost totaled NT$65,434 million for the year, representing 12% of total net revenues.
  - Depreciation, amortization and rental expenses totaled NT$50,068 million for the year.
• Gross margin increased 3.1 percentage points to 19.4% in 2021 from 16.3% in 2020.
• Operating margin increased to 10.9% in 2021 from 7.3% in 2020.
• Total non-operating income for the year was NT$18,211 million, compared to total non-operating expenses of NT$857 million for 2020.
• Income before tax was NT$80,336 million for 2021. We recognized an income tax expense of NT$14,322 million for the year.
• In 2021, net income attributable to shareholders of the parent amounted to NT$63,908 million, compared with a net income attributable to shareholders of the parent of NT$27,593 million in 2020.
• Our total number of shares outstanding at the end of the year was 4,408,018,732, including treasury stock owned by our subsidiaries and stocks repurchased in 4Q21. Our 2021 basic earnings per share of NT$14.84 (or US$1.061 per ADS) were based on 4,305,348,164 weighted average numbers of shares outstanding in 2021. Our 2021 diluted earnings per share of NT$14.40 (or US$1.029 per ADS) were based on 4,365,667,867 weighted average number of shares outstanding in 2021.

2021 Full-Year Results Highlights – ATM

• Cost of revenues for the full year of 2021 was NT$246,133 million, compared with NT$220,863 million in 2020.
  - Raw material cost totaled NT$87,967 million for the year, representing 26% of total net revenues.
  - Labor cost totaled NT$55,527 million for the year, representing 17% of total net revenues.
  - Depreciation, amortization and rental expenses totaled NT$45,831 million for the year.
• Gross margin increased to 26.5% in 2021 from 21.2% in 2020.
• Operating margin increased to 16.0% in 2021 from 9.8% in 2020.

2021 Full-Year Results Highlights – EMS

• Cost of revenues was NT$218,040 million, up by 17% from 2020.
  - Raw material cost totaled NT$192,287 million for the year, representing 80% of total net revenues.
  - Labor cost totaled NT$9,483 million for the year, representing 4% of total net revenues.
  - Depreciation, amortization and rental expenses totaled NT$3,535 million for the year.
• Gross margin decreased to 9.0% in 2021 from 9.2% in 2020.
• Operating margin decreased to 3.6% in 2021 from 3.8% in 2020.

LIQUIDITY AND CAPITAL RESOURCES

• Capital expenditures in 4Q21 totaled US$472 million, of which US$231 million were used in packaging operations, US$160 million in testing operations, US$68 million in EMS operations and US$13 million in interconnect materials operations and others.
• For the full year of 2021, we spent US$2,021 million for capital expenditures, including US$1,311 million in packaging operations, US$496 million in testing operations, US$177 million in EMS operations and US$37 million in interconnect materials operations and others.
• As of December 31, 2021, total unused credit lines amounted to NT$278,796 million.
• Current ratio was 1.39 and net debt to equity ratio was 0.54 as of December 31, 2021.
• Total number of employees was 95,731 as of December 31, 2021, compared to 104,471 as of September 30, 2021.

BUSINESS REVIEW

Customers

ATM CONSOLIDATED BASIS

• Our five largest customers together accounted for approximately 45% of our total net revenues in 4Q21, compared to 44% in 3Q21. Two customers each accounted for more than 10% of our total net revenues in 4Q21 individually.
• Our top 10 customers contributed 56% of our total net revenues in 4Q21, compared to 55% in 3Q21.
• Our customers that are integrated device manufacturers or IDMs accounted for 31% of our total net revenues both in 4Q21 and 3Q21.

EMS BASIS

• Our five largest customers together accounted for approximately 77% of our total net revenues in 4Q21, compared to 74% in 3Q21. One customer accounted for more than 10% of our total net revenues in 4Q21.
• Our top 10 customers contributed 84% of our total net revenues in 4Q21, compared to 81% in 3Q21.

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 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 2020 Annual Report on Form 20-F filed on April 6, 2021.

Supplemental Financial Information
(Unaudited)

Consolidated Operations

	4Q/21	3Q/21	4Q/20
EBITDA (NT$ Millions)	51,938	32,655	26,130

ATM Consolidated Operations

	4Q/21	3Q/21	4Q/20
Net Revenues (NT$ Millions)	91,958	90,092	72,752
Revenues by Application
Communication	50%	51%	52%
Computing	16%	15%	14%
Automotive, Consumer & Others	34%	34%	34%
Revenues by Type
Bumping, Flip Chip, WLP & SiP	38%	36%	35%
Wirebonding	37%	39%	39%
Discrete and Others	8%	8%	9%
Testing	15%	15%	15%
Material	2%	2%	2%
Capacity & EBITDA
CapEx (US$ Millions)*	404	407	359
EBITDA (NT$ Millions)	47,090	28,588	21,822
Number of Wirebonders	25,803	29,943	26,461
Number of Testers	4,890	6,149	5,680

EMS Operations

	4Q/21	3Q/21	4Q/20
Net Revenues (NT$ Millions)	81,544	61,127	79,149
Revenues by End Application
Communication	38%	38%	45%
Computing	8%	10%	4%
Consumer	38%	33%	39%
Industrial	11%	12%	8%
Automotive	4%	5%	3%
Others	1%	2%	1%
Capacity
CapEx (US$ Millions)*	68	60	19

* 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 year ended
	Dec. 31 2021		Sep. 30 2021		Dec. 31 2020		Dec. 31 2021		Dec. 31 2020
Net revenues:
Packaging	75,366		73,996		57,260		272,544		218,667
Testing	13,756		13,416		10,667		49,979		47,271
EMS	81,541		61,116		79,141		239,488		204,691
Others	2,273		2,137		1,809		7,986		6,349
Total net revenues	172,936		150,665		148,877		569,997		476,978
Cost of revenues	(140,042)		(119,881)		(125,578)		(459,628)		(398,994)
Gross profit	32,894		30,784		23,299		110,369		77,984
Operating expenses:
Research and development	(5,714)		(5,495)		(4,929)		(21,053)		(19,301)
Selling, general and administrative	(7,565)		(6,863)		(7,124)		(27,191)		(23,806)
Total operating expenses	(13,279)		(12,358)		(12,053)		(48,244)		(43,107)
Operating income	19,615		18,426		11,246		62,125		34,877
Net non-operating (expenses) income:
Interest expense - net	(553)		(562)		(592)		(2,257)		(2,916)
Foreign exchange gain (loss)	496		66		51		1,395		1,006
Gain (loss) on valuation of financial assets and liabilities	(483)		(349)		165		(1,490)		(72)
Gain (loss) on equity-method investments	192		414		169		974		512
Others	18,069		479		1,565		19,589		2,327
Total non-operating income (expenses)	17,721		48		1,358		18,211		857
Income before tax	37,336		18,474		12,604		80,336		35,734
Income tax expense	(5,592)		(3,630)		(1,839)		(14,322)		(6,457)
Income from continuing operations and before non-controlling interest	31,744		14,844		10,765		66,014		29,277
Non-controlling interest	(828)		(668)		(721)		(2,106)		(1,684)
Net income attributable to shareholders of the parent	30,916		14,176		10,044		63,908		27,593
Per share data:
Earnings (losses) per share
– Basic	NT$7.20		NT$3.29		NT$2.35		NT$14.84		NT$6.47
– Diluted	NT$6.99		NT$3.20		NT$2.30		NT$14.40		NT$6.31
Earnings (losses) per equivalent ADS
– Basic	US$0.518		US$0.236		US$0.163		US$1.061		US$0.438
– Diluted	US$0.504		US$0.230		US$0.160		US$1.029		US$0.427
Number of weighted average shares used in diluted EPS calculation (in thousands)	4,343,537		4,370,715		4,295,951		4,365,668		4,288,633
FX (NTD/USD)	27.78		27.79		28.78		27.98		29.54

 

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 year ended
	Dec. 31 2021		Sep. 30 2021		Dec. 31 2020		Dec. 31 2021		Dec. 31 2020
Net revenues:
Packaging	76,664		75,221		60,825		279,365		228,574
Testing	13,756		13,416		10,667		49,981		47,277
Direct Material	1,502		1,429		1,229		5,346		4,314
Others	36		26		31		113		132
Total net revenues	91,958		90,092		72,752		334,805		280,297
Cost of revenues	(66,217)		(65,378)		(56,274)		(246,133)		(220,863)
Gross profit	25,741		24,714		16,478		88,672		59,434
Operating expenses:
Research and development	(4,479)		(4,254)		(3,882)		(16,259)		(15,133)
Selling, general and administrative	(5,206)		(4,829)		(4,594)		(18,981)		(16,692)
Total operating expenses	(9,685)		(9,083)		(8,476)		(35,240)		(31,825)
Operating income	16,056		15,631		8,002		53,432		27,609

 

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 year ended
	Dec. 31 2021		Sep. 30 2021		Dec. 31 2020		Dec. 31 2021		Dec. 31 2020
Net revenues:
Total net revenues	81,544		61,127		79,149		239,519		204,723
Cost of revenues	(74,436)		(55,244)		(72,153)		(218,040)		(185,802)
Gross profit	7,108		5,883		6,996		21,479		18,921
Operating expenses:
Research and development	(1,256)		(1,270)		(1,073)		(4,897)		(4,267)
Selling, general and administrative	(2,253)		(1,955)		(2,460)		(7,876)		(6,852)
Total operating expenses	(3,509)		(3,225)		(3,533)		(12,773)		(11,119)
Operating income	3,599		2,658		3,463		8,706		7,802

 

ASE Technology Holding Co., Ltd.
Summary of Consolidated Balance Sheet Data
(In NT$ millions)
(Unaudited)

 

	As of Dec. 31, 2021						As of Sep. 30, 2021
Current assets:
Cash and cash equivalents			76,073				53,419
Financial assets – current			3,075				4,133
Notes and accounts receivable			115,462				108,156
Inventories			73,245				77,830
Others			24,503				16,695
Total current assets			292,358				260,233
Financial assets – non-current & Investments – equity method			23,260				20,915
Property plant and equipment			239,867				252,384
Right-of-use assets			10,680				10,321
Intangible assets			75,980				77,283
Others			30,789				29,123
Total assets			672,934				650,259
Current liabilities:
Short-term borrowings			41,037				36,610
Current portion of bonds payable & Current portion of long-term borrowings			14,429				6,539
Notes and accounts payable			84,470				83,060
Others			70,992				66,417
Total current liabilities			210,928				192,626
Bonds payable			42,365				48,498
Long-term borrowings[3]			121,946				137,015
Other liabilities			23,062				21,281
Total liabilities			398,301				399,420
Equity attributable to shareholders of the parent			260,077				235,186
Non-controlling interests			14,556				15,653
Total liabilities & shareholders' equity			672,934				650,259
Current Ratio			1.39				1.35
Net Debt to Equity Ratio			0.54				0.71

 

ASE Technology Holding Co., Ltd.
Summary of Consolidated Cash Flow Statements
(In NT$ millions)
(Unaudited)

 

		For the three months ended								For the year ended
		Dec. 31		Sep. 30		Dec. 31			Dec. 31			Dec. 31
		2021		2021		2020			2021			2020
Cash Flows from Operating Activities:
Profit before income tax		37,336		18,474		12,604			80,336			35,734
Depreciation & amortization		14,070		13,864		12,764			54,524			51,259
Other operating activities items		(18,537)		(17,505)		2,754			(53,174)			(11,932)
Net cash generated from operating activities		32,869		14,833		28,122			81,686			75,061
Cash Flows from Investing Activities:
Net payments for property, plant and equipment		(16,513)		(20,294)		(15,139)			(69,301)			(57,628)
Other investment activities items		21,812		(139)		(4,859)			20,210			(3,319)
Net cash generated from (used in) investing activities		5,299		(20,433)		(19,998)			(49,091)			(60,947)
Cash Flows from Financing Activities:
Total net proceeds from (repayment of) debts		(5,936)		25,319		(15,686)			22,343			(8,285)
Dividends paid		-		(18,083)		-			(18,083)			(8,521)
Other financing activities items		(9,810)		(854)		989			(10,074)			(5,189)
Net cash generated from (used in) financing activities		(15,746)		6,382		(14,697)			(5,814)			(21,995)
Foreign currency exchange effect		232		(350)		638			(2,246)			(712)
Net increase (decrease) in cash and cash equivalents		22,654		432		(5,935)			24,535			(8,593)
Cash and cash equivalents at the beginning of period		53,419		52,987		55,814			51,538			60,131
Cash and cash equivalents at the end of period		76,073		53,419		49,879			76,073			51,538
Cash and cash equivalents in the consolidated balance sheet		76,073		53,419		51,538			76,073			51,538
Cash and cash equivalents included in disposal groups held for sale		-		-		(1,659)			-			-

 

[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.com
Tel: +886.2.6636.5678
http://www.aseglobal.com

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SOURCE ASE Technology Holding Co., Ltd.

FAQ

What were ASE Technology's 4Q21 financial results on ASX?

ASE Technology reported 4Q21 net revenues of NT$172,936 million, a 16% increase YoY, with net income of NT$30,916 million.

How did ASE Technology's earnings per share perform in 4Q21?

Basic EPS for 4Q21 was NT$7.20 (US$0.518), up from NT$2.35 in 4Q20.

What was ASE Technology's revenue for the full year of 2021 on ASX?

The company reported full-year net revenues of NT$569,997 million for 2021, a 20% increase from the previous year.

What were ASE Technology's gross and operating margins in 4Q21?

ASE's gross margin decreased to 19.0% and operating margin fell to 11.3% in 4Q21.