Technology
ASE Technology Holding Co., Ltd. Reports Its Unaudited Consolidated Financial Results for the Third Quarter of 2024
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12 hours agoon
By
TAIPEI, Oct. 31, 2024 /PRNewswire/ — ASE Technology Holding Co., Ltd. (TWSE: 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$160,105 million for 3Q24, up by 3.9% year-over-year and up by 14.2% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT9,666 million, up from NT$8,776 million in 3Q23 and up from NT$7,778 million in 2Q24. Basic earnings per share for the quarter were NT$2.24 (or US$0.138 per ADS), compared to NT$2.04 for 3Q23 and NT$1.80 for 2Q24. Diluted earnings per share for the quarter were NT$2.17 (or US$0.134 per ADS), compared to NT$2.00 for 3Q23 and NT$1.75 for 2Q24.
As of September 30, 2024, we have completed the PPA and have retrospectively adjusted the consolidated financial results for prior period.
RESULTS OF OPERATIONS
3Q24 Results Highlights – Consolidated
Net revenues from packaging operations, testing operations, EMS operations, and others represented approximately 43%, 9%, 47%, and 1% of the total net revenues for the quarter, respectively.Cost of revenues was NT$133,673 million for the quarter, up from NT$117,184 million in 2Q24.Raw material cost totaled NT$84,658 million for the quarter, representing 53% of the total net revenues.Labor cost totaled NT$16,468 million for the quarter, representing 10% of the total net revenues.Depreciation, amortization and rental expenses totaled NT$13,647 million for the quarter.Gross margin increased by 0.1 percentage points to 16.5% in 3Q24 from 16.4% in 2Q24.Operating margin was 7.2% in 3Q24, compared to 6.4% in 2Q24.In terms of non-operating items:Net interest expense was NT$1,291 million.Net foreign exchange gain was NT$1,890 million, primarily attributable to the depreciation of the U.S. dollar against the New Taiwan dollar.Net loss on valuation of financial assets and liabilities was NT$943 million.Net gain on equity-method investments was NT$485 million.Other net non-operating income was NT$643 million, primarily attributable to miscellaneous income.
Total non-operating income and expenses for the quarter was NT$784 million.Income before tax was NT$12,260 million in 3Q24, compared to NT$10,105 million in 2Q24. We recorded income tax expenses of NT$2,054 million for the quarter, compared to NT$1,950 million in 2Q24.Net income attributable to shareholders of the parent was NT$9,666 million in 3Q24, compared to NT$8,776 million in 3Q23 and NT$7,778 million in 2Q24.Our total number of shares outstanding at the end of the quarter was 4,412,064,337, including treasury stock owned by our subsidiaries in 3Q24. Our 3Q24 basic earnings per share of NT$2.24 (or US$0.138 per ADS) were based on 4,321,735,473 weighted average numbers of shares outstanding in 3Q24. Our 3Q24 diluted earnings per share of NT$2.17 (or US$0.134 per ADS) were based on 4,391,466,234 weighted average number of shares outstanding in 3Q24.
3Q24 Results Highlights – ATM
Net revenues were NT$85,790 million for the quarter, up by 2.5% year-over-year and up by 10.3% sequentially.Cost of revenues was NT$65,989 million for the quarter, up by 1.4% year-over-year and up by 8.9% sequentially.Raw material cost totaled NT$24,177 million for the quarter, representing 28% of the total net revenues.Labor cost totaled NT$13,309 million for the quarter, representing 16% of the total net revenues.Depreciation, amortization and rental expenses totaled NT$12,163 million for the quarter.Gross margin increased by 1.0 percentage points to 23.1% in 3Q24 from 22.1% in 2Q24.Operating margin was 10.8% in 3Q24, compared to 9.3% in 2Q24.
3Q24 Results Highlights – EMS
Net revenues were NT$75,384 million, up by 6.2% year-over-year and up by 19.8% sequentially.Cost of revenues for the quarter was NT$68,627 million, up by 6.4% year-over-year and up by 20.6% sequentially.Raw material cost totaled NT$60,912 million for the quarter, representing 81% of the total net revenues.Labor cost totaled NT$3,051 million for the quarter, representing 4% of the total net revenues.Depreciation, amortization and rental expenses totaled NT$1,219 million for the quarter.Gross margin decreased by 0.6 percentage points to 9.0% in 3Q24 from 9.6% in 2Q24.Operating margin was 3.3% in 3Q24, compared to 3.1% in 2Q24.
LIQUIDITY AND CAPITAL RESOURCES
Capital expenditures in 3Q24 totaled US$603 million, of which US$312 million was used in packaging operations, US$274 million in testing operations, US$14 million in EMS operations and US$3 million in interconnect materials operations and others.Total unused credit lines amounted to NT$361,264 million as of September 30, 2024.Current ratio was 1.18 and net debt to equity ratio was 0.41 as of September 30, 2024.Total number of employees was 94,456 as of September 30, 2024, compared to 92,243 as of June 30, 2024.
BUSINESS REVIEW
Customers
ATM BASIS
Our five largest customers together accounted for approximately 46% of our total net revenues in 3Q24, compared to 45% in 2Q24. One customer accounted for more than 10% of our total net revenues in 3Q24.Our top 10 customers contributed 61% of our total net revenues in 3Q24, compared to 60% in 2Q24.Our customers that are integrated device manufacturers or IDMs accounted for 31% of our total net revenues in 3Q24, compared to 30% in 2Q24.
EMS BASIS
Our five largest customers together accounted for approximately 72% of our total net revenues in 3Q24, compared to 67% in 2Q24. One customer accounted for more than 10% of our total net revenues in 3Q24.Our top 10 customers contributed 78% of our total net revenues in 3Q24, compared to 74% in 2Q24.
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, Philippines, 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. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. 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 2023 Annual Report on Form 20-F filed on April 3, 2024.
Supplemental Financial Information
(Unaudited)
Consolidated Operations
3Q24
2Q24
3Q23
EBITDA[2] (NT$ million)
28,621
26,127
27,822
ATM Operations
3Q24
2Q24
3Q23
Net Revenues (NT$ million)
85,790
77,813
83,684
Revenues by Application
Communication
50 %
49 %
52 %
Computing
18 %
19 %
19 %
Automotive, Consumer & Others
32 %
32 %
29 %
Revenues by Type
Bumping, Flip Chip, WLP & SiP
45 %
44 %
44 %
Wirebonding
29 %
31 %
32 %
Others
8 %
7 %
8 %
Testing
16 %
16 %
15 %
Material
2 %
2 %
1 %
Capacity & EBITDA
CapEx[3] (US$ million)
588
374
210
EBITDA[2] (NT$ million)
24,186
22,205
23,117
Number of Wirebonders
25,373
25,154
26,215
Number of Testers
5,966
5,676
5,510
EMS Operations
3Q24
2Q24
3Q23
Net Revenues (NT$ million)
75,384
62,907
70,970
Revenues by Application
Communication
34 %
33 %
34 %
Computing
9 %
11 %
8 %
Consumer
36 %
29 %
37 %
Industrial
11 %
13 %
12 %
Automotive
9 %
11 %
7 %
Others
1 %
3 %
2 %
Capacity
CapEx[3] (US$ million)
14
31
28
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
For the nine months ended
Sep. 30
2024
Jun. 30 2024
(Retrospectively Adjusted)
Sep. 30
2023
Sep. 30
2024
Sep. 30
2023
Net revenues
Packaging
69,154
62,834
68,709
191,447
190,584
Testing
14,124
12,623
12,819
38,848
36,518
EMS
74,871
62,853
70,948
197,050
189,063
Others
1,956
1,928
1,691
5,801
5,168
Total net revenues
160,105
140,238
154,167
433,146
421,333
Cost of revenues
(133,673)
(117,184)
(129,251)
(362,839)
(355,337)
Gross profit
26,432
23,054
24,916
70,307
65,996
Operating expenses
Research and development
(7,439)
(7,106)
(6,759)
(21,154)
(18,549)
Selling, general and administrative
(7,517)
(6,939)
(6,752)
(21,191)
(18,934)
Total operating expenses
(14,956)
(14,045)
(13,511)
(42,345)
(37,483)
Operating income
11,476
9,009
11,405
27,962
28,513
Net non-operating income and expenses
Interest expense – net
(1,291)
(1,158)
(1,247)
(3,557)
(3,424)
Foreign exchange gain (loss) – net
1,890
(1,420)
(2,090)
(2,748)
(2,733)
Gain (Loss) on valuation of financial assets and liabilities – net
(943)
2,664
2,820
5,819
4,837
Gain on equity-method investments – net
485
459
656
1,001
970
Others – net
643
551
708
1,700
2,070
Total non-operating income and expenses
784
1,096
847
2,215
1,720
Income before tax
12,260
10,105
12,252
30,177
30,233
Income tax expense
(2,054)
(1,950)
(2,890)
(5,897)
(6,582)
Income from operations and before non-controlling interests
10,206
8,155
9,362
24,280
23,651
Non-controlling interests
(540)
(377)
(586)
(1,176)
(1,318)
Net income attributable to shareholders of the parent
9,666
7,778
8,776
23,104
22,333
Per share data:
Earnings per share
– Basic
NT$2.24
NT$1.80
NT$2.04
NT$5.35
NT$5.20
– Diluted
NT$2.17
NT$1.75
NT$2.00
NT$5.17
NT$5.05
Earnings per equivalent ADS
– Basic
US$0.138
US$0.112
US$0.130
US$0.335
US$0.338
– Diluted
US$0.134
US$0.109
US$0.127
US$0.324
US$0.328
Number of weighted average shares used in diluted EPS calculation ( in thousand shares)
4,391,465
4,383,325
4,347,752
4,385,913
4,346,129
FX (NTD/USD)
32.31
32.23
31.45
31.95
30.81
ASE Technology Holding Co., Ltd.
Summary of ATM Statement of Income Data
(In NT$ million)
(Unaudited)
For the three months ended
For the nine months ended
Sep. 30
2024
Jun. 30
2024
Sep. 30
2023
Sep. 30
2024
Sep. 30
2023
Net revenues:
Packaging
70,290
63,838
69,731
194,516
193,108
Testing
14,124
12,623
12,819
38,848
36,518
Direct Material
1,295
1,264
1,098
3,898
3,369
Others
81
88
36
250
116
Total net revenues
85,790
77,813
83,684
237,512
233,111
Cost of revenues
(65,989)
(60,612)
(65,094)
(184,952)
(183,611)
Gross profit
19,801
17,201
18,590
52,560
49,500
Operating expenses:
Research and development
(5,773)
(5,483)
(5,344)
(16,392)
(14,361)
Selling, general and administrative
(4,803)
(4,464)
(4,426)
(13,612)
(12,505)
Total operating expenses
(10,576)
(9,947)
(9,770)
(30,004)
(26,866)
Operating income
9,225
7,254
8,820
22,556
22,634
ASE Technology Holding Co., Ltd.
Summary of EMS Statement of Income Data
(In NT$ million)
(Unaudited)
For the three months ended
For the nine months ended
Sep. 30
2024
Jun. 30 2024
(Retrospectively Adjusted)
Sep. 30
2023
Sep. 30
2024
Sep. 30
2023
Net revenues
Total net revenues
75,384
62,907
70,970
197,656
189,127
Cost of revenues
(68,627)
(56,882)
(64,500)
(179,422)
(172,451)
Gross profit
6,757
6,025
6,470
18,234
16,676
Operating expenses
Research and development
(1,668)
(1,668)
(1,453)
(4,869)
(4,304)
Selling, general and administrative
(2,636)
(2,415)
(2,250)
(7,360)
(6,191)
Total operating expenses
(4,304)
(4,083)
(3,703)
(12,229)
(10,495)
Operating income
2,453
1,942
2,767
6,005
6,181
ASE Technology Holding Co., Ltd.
Summary of Consolidated Balance Sheet Data
(In NT$ million)
(Unaudited)
As of Sep. 30, 2024
As of Jun. 30, 2024
(Retrospectively Adjusted)
Current assets
Cash and cash equivalents
71,711
66,173
Financial assets – current
6,643
9,162
Trade receivables
114,061
102,361
Inventories
68,986
63,495
Others
17,364
29,144
Total current assets
278,765
270,335
Financial assets – non-current & Investments – equity -method
42,300
30,887
Property, plant and equipment
283,447
271,870
Right-of-use assets
11,499
11,292
Intangible assets
68,038
68,316
Others
30,510
30,291
Total assets
714,559
682,991
Current liabilities
Short-term borrowings[4]
56,726
51,065
Current portion of bonds payable & Current portion of long-term borrowings
23,531
18,655
Trade payables
82,595
70,906
Others
72,830
89,495
Total current liabilities
235,682
230,121
Bonds payable
17,073
21,976
Long-term borrowings
108,003
84,414
Other liabilities
22,748
23,053
Total liabilities
383,506
359,564
Equity attributable to shareholders of the parent
309,399
302,323
Non-controlling interests
21,654
21,104
Total liabilities & shareholders’ equity
714,559
682,991
Current ratio
1.18
1.17
Net debt to equity ratio
0.41
0.34
ASE Technology Holding Co., Ltd.
Summary of Consolidated Statement of Cash Flow Data
(In NT$ million)
(Unaudited)
For the three months ended
For the nine months ended
Sep. 30
2024
Jun. 30 2024
(Retrospectively Adjusted)
Sep. 30
2023
Sep. 30
2024
Sep. 30
2023
Cash Flows from Operating Activities
Profit before income tax
12,260
10,105
12,252
30,177
30,233
Depreciation & amortization
15,037
14,813
14,568
44,449
43,495
Other operating activities items
(5,235)
(8,132)
(5,940)
(19,083)
(6,134)
Net cash generated from operating activities
22,062
16,786
20,880
55,543
67,594
Cash Flows from Investing Activities
Net payments for property, plant
and equipment
(19,769)
(14,786)
(14,471)
(47,068)
(41,824)
Other investment activities items
(2,593)
304
(151)
(5,284)
(2,021)
Net cash used in investing activities
(22,362)
(14,482)
(14,622)
(52,352)
(43,845)
Cash Flows from Financing Activities
Total net proceeds from (repayment of) borrowings and bonds
30,909
(12,330)
28,640
18,439
13,624
Dividends paid
(22,460)
–
(37,841)
(22,460)
(37,841)
Other financing activities items
(51)
(1,093)
(38)
(1,177)
(977)
Net cash generated from (used in) financing activities
8,398
(13,423)
(9,239)
(5,198)
(25,194)
Foreign currency exchange effect
(2,560)
2,187
6,443
6,434
6,478
Net increase (decrease) in cash
and cash equivalents
5,538
(8,932)
3,462
4,427
5,033
Cash and cash equivalents at the beginning of period
66,173
75,105
59,351
67,284
58,040
Cash and cash equivalents at the
end of period
71,711
66,173
62,813
71,711
63,073
Cash and cash equivalents in the consolidated balance sheet
71,711
66,173
62,812
71,711
62,812
Cash and cash equivalents included in disposal groups held for sale
–
–
1
–
261
[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.
[2] EBITDA stands for net income or loss before interest, taxes, depreciation, amortization, impairment and investment gain or loss as well as other items.
[3] Capital expenditure excludes building construction costs.
[4] Short-term borrowings include short-term loans and bills payable.
Investor Relations Contact
ir@aseglobal.com
Tel: +886.2.6636.5678
https://www.aseglobal.com
View original content:https://www.prnewswire.com/news-releases/ase-technology-holding-co-ltd-reports-its-unaudited-consolidated-financial-results-for-the-third-quarter-of-2024-302292377.html
SOURCE ASE Technology Holding Co., Ltd.
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56 mins agoon
October 31, 2024By
ISTANBUL, Nov. 1, 2024 /PRNewswire/ — At the 10th Ultra-Broadband Forum (UBBF 2024), David Wang, Huawei’s Executive Director of the Board and Chairman of the ICT Infrastructure Managing Board, delivered a keynote speech titled “UBB Advanced Paves the Way to All Intelligence”. When opening the event, he shared his latest insights into the AI industry and elaborated on Huawei’s All Intelligence strategy. He also proposed a new direction for the synergistic development of UBB and AI to help the industry reach the intelligent world faster – technological innovation and business incubation.
The Fourth Industrial Revolution has been progressing rapidly thanks to AI, with AI becoming a major driver of global economic growth. Widespread commercial use of AI is accelerating, and new applications for personal use, enterprise efficiency, and smart homes are disrupting multiple markets. It is also driving communications network upgrades, in terms of capacity, latency, and architecture.
In his speech, Wang noted, “Huawei has continued innovating by focusing on two areas: UBB for AI and AI for UBB. The innovation we are doing under UBB for AI is based on ultra-large bandwidth, deterministic low latency, and network architecture. The network capability improvements we’ve achieved support higher quality AI development which will help carriers achieve business growth. This innovation also focuses on AI for UBB. We are applying AI to networks to improve network experience, to speed up service provisioning, and to streamline network O&M. This helps carriers build highly autonomous networks.”
Last year, Huawei released its All Intelligence Strategy to, “show how to connect all things, model all applications, and compute all decisions.” Huawei offers leading digital and intelligent infrastructure that provides computing, storage, and transmission power for industry. Huawei is also using its Pangu Models to create advanced industry-specific models, with the aim of supporting a vast range of models and applications, and helping customers from different industries pursue intelligent transformation.
Within the telecom industry, Huawei offers leading AI solutions, which must be supported by transmission power. As critical infrastructure, UBB networks provide this kind of power to help other industries go digital and intelligent more easily. To this end, Huawei advocates two development paths for UBB networks: “UBB for AI” and “AI for UBB”.
UBB for AI: high-quality AI development
UBB 5.5G incorporates technological innovation at multiple network layers to support AI requirements.
For data center networks (DCNs), Huawei offers a Dragonfly+ Topology architecture and new DC-OXC technologies that help build large-scale computing centers.
For data center interconnect (DCI) networks, Huawei uses a number of innovative technologies like 800G IP + Optical networking, flexible IP service-flow level scheduling, and lossless transmission to realize more efficient use of computing power across data centers.
For data center access (DCA) networks, Huawei’s OXC Mesh networking is capable of greatly reducing network latency. Its Wi-Fi 7 and 50G PON technologies can provide the ubiquitous 10 gigabit access that is necessary for widespread AI adoption by end users. In addition, Huawei’s FTTR is already being used to create “intelligent hubs” and enable intelligent applications for many homes.
Huawei’s Xinghe security gateway and hybrid ASON also guarantee resilience over end-to-end networks for AI application connections.
These innovations significantly improve bandwidth, latency, availability, and large-scale networking capabilities and will help carriers differentiate themselves in the intelligent era.
AI for UBB: highly-autonomous networks
UBB networks are also becoming larger and handling more complex scenarios, driving carriers to seek new ways to improve O&M efficiency and network autonomy. A promising method being explored is embedding AI directly into networks.
Huawei has built an AI-enabled O&M architecture for UBB networks that uses digital twins and its own Telecom Foundation Model. This architecture enables the creation of intelligent role-oriented “copilots” and scenario-specific “agents” that automate onsite operations and remote maintenance and optimization, which is necessary for the evolution to level 4 autonomous driving networks (ADNs).
Multiple leading carriers have successfully improved their network O&M efficiency by working with Huawei to apply this architecture commercially.
For home broadband, ADNs can support network self-optimization to ensure user experiences, reducing the churn rate by 57%.
For transmission networks, network planning and service deployment efficiency is crucial. ADNs can support service self-planning and deployment based on service level agreements, rather than manual planning. This can cut service provisioning times from one month to one day.
For IP network maintenance, fault location has always been a challenge. ADNs can enable virtual employees to support troubleshooting, reducing network troubleshooting times by 50%.
At the end of his speech, Wang called for the entire UBB industry to actively embrace the intelligent era by pursuing innovation in UBB 5.5G network technologies for long-term competitiveness. He also advocated for industry-wide incubation of new intelligent services in addition to new network capabilities, saying that new partnerships and business opportunities in AI applications will drive intelligent service transformation and new business growth.
SOURCE Huawei
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