ASE Technology Holding Co., Ltd. Reports Unaudited Consolidated Financial Results for the First Quarter of 2021

Rhea-AI Summary

ASE Technology Holding Co., Ltd. reported Q1 2021 net revenues of NT$119,470 million, a 23% increase YoY but a 20% decline sequentially. Net income attributable to shareholders reached NT$8,565 million, up from NT$3,899 million in Q1 2020 but down from NT$10,044 million in Q4 2020. Basic earnings per share for Q1 2021 were NT$1.99 (US$0.141 per ADS). Gross margin improved to 18.4% from 15.7% in Q4 2020, while operating margin rose to 9.3%. Capital expenditures amounted to US$471 million. The top five customers accounted for 44% of revenues.

Positive

• Net revenues increased 23% YoY.
• Net income rose significantly from Q1 2020.
• Gross margin improved to 18.4%.

Negative

• Net income declined from Q4 2020.
• Sequential net revenue decreased by 20%.

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 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 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 2021		Dec. 31 2020		Mar. 31 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 and liabilities	391		165		186
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    before non-controlling interest	8,848		10,765		4,062
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    diluted EPS calculation (in thousands)	4,357,714		4,295,951		4,280,990
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 2021		Dec. 31 2020		Mar. 31 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 2021		Dec. 31 2020		Mar. 31 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, 2021						As of Dec. 31, 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   method			18,797				17,041
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 parent			229,758				218,635
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 equipment		(14,053)		(15,139)		(13,605)
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 activities		21,213		(14,697)		14,084
Foreign currency exchange effect		(461)		638		(24)
Net increase (decrease) in cash and cash equivalents		22,245		(5,935)		13,698
Cash and cash equivalents at the beginning of period		51,538		55,814		60,131
Cash and cash equivalents at the end of period		73,783		49,879		73,829
Cash and cash equivalents in the consolidated balance sheet		73,783		51,538		73,829
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

View original content:http://www.prnewswire.com/news-releases/ase-technology-holding-co-ltd-reports-unaudited-consolidated-financial-results-for-the-first-quarter-of-2021-301278610.html

SOURCE ASE Technology Holding Co., Ltd.

FAQ

What was ASE Technology's revenue and net income for Q1 2021?

ASE Technology reported Q1 2021 revenues of NT$119,470 million and net income of NT$8,565 million.

How much did ASE Technology's earnings per share change in Q1 2021?

Basic earnings per share for Q1 2021 were NT$1.99, compared to NT$0.92 in Q1 2020.

What are the key financial metrics for ASE Technology in Q1 2021?

Key financial metrics include a gross margin of 18.4% and an operating margin of 9.3%.

How did ASE Technology's Q1 2021 performance compare to Q4 2020?

Q1 2021 net income decreased from NT$10,044 million in Q4 2020, and net revenues dropped by 20% sequentially.

What percentage of revenues did ASE Technology's top customers represent in Q1 2021?

The top five customers accounted for approximately 44% of total net revenues in Q1 2021.