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 31, 2020

 

Commission File Number 001-16125
   
ASE Technology Holding Co., Ltd.
(Translation of registrant’s name into English)
   

26 Chin Third Road

Nantze Export Processing Zone

Kaoshiung, 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 ☐    

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐ 

 

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐ 

 

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

 

 

 

 

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.

 

  ASE TECHNOLOGY HOLDING CO., LTD.
   
   
 Date: July 31, 2020 By:     /s/ Joseph Tung
    Name: Joseph Tung
    Title: Chief Financial Officer

 

 

 

 

 

 

Investor Relations Contact:

ir@aseglobal.com 

Tel: +886.2.6636.5678 

http://www.aseglobal.com

 

 

ASE Technology Holding Co., Ltd. Reports Unaudited Consolidated Financial Results for the Second Quarter of 2020

 

Taipei, Taiwan, R.O.C., July 31, 2020 – 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 revenues1 of NT$107,549 million for 2Q20, up by 19% year-over-year and up by 11% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$6,937 million, up from a net income attributable to shareholders of the parent of NT$2,690 million in 2Q19 and up from a net income attributable to shareholders of the parent of NT$3,899 million in 1Q20. Basic earnings per share for the quarter were NT$1.63 (or US$0.109 per ADS), compared to basic earnings per share of NT$0.63 for 2Q19 and basic earnings per share of NT$0.92 for 1Q20. Diluted earnings per share for the quarter were NT$1.60 (or US$0.107 per ADS), compared to diluted earnings per share of NT$0.62 for 2Q19 and diluted earnings per share of NT$0.89 for 1Q20.

 

RESULTS OF OPERATIONS

 

2Q20 Results Highlights – Consolidated

 

lNet revenue contribution from packaging operations, testing operations, EMS operations and others, each represented approximately 50%, 12%, 37% and 1%, respectively, of total net revenues for the quarter.

 

lCost of revenue was NT$88,740 million for the quarter, up from NT$81,201 million in 1Q20.

 

-Raw material cost totaled NT$50,216 million for the quarter, representing 47% of total net revenues.

 

-Labor cost totaled NT$13,477 million for the quarter, representing 13% of total net revenues.

 

-Depreciation, amortization and rental expenses totaled NT$11,699 million for the quarter.

 

lGross margin increased 0.9 percentage points to 17.5% in 2Q20 from 16.6% in 1Q20.

 

lOperating margin was 7.8% in 2Q20, compared to 6.2% in 1Q20.

 

lIn terms of non-operating items:

 

-Net interest expense was NT$771 million.

 

 

 

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.

 

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-Net foreign exchange gain of NT$718 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$17 million.

 

-Net gain on equity-method investments was NT$105 million.

 

-Other net non-operating income of NT$417 million were primarily attributable to miscellaneous incomes. Total non-operating income for the quarter were NT$452 million.

 

lIncome before tax was NT$8,879 million for 2Q20, compared to NT$5,237 million in 1Q20. We recorded income tax expenses of NT$1,646 million for the quarter, compared to NT$1,175 million in 1Q20.

 

lIn 2Q20, net income attributable to shareholders of the parent was NT$6,937 million, compared to net income attributable to shareholders of the parent of NT$2,690 million in 2Q19 and net income attributable to shareholders of the parent of NT$3,899 million in 1Q20.

 

lOur total number of shares outstanding at the end of the quarter was 4,338,345,132, including treasury stock owned by our subsidiaries. Our 2Q20 basic earnings per share of NT$1.63 (or US$0.109 per ADS) were based on 4,265,407,583 weighted average numbers of shares outstanding in 2Q20. Our 2Q20 diluted earnings per share of NT$1.60 (or US$0.107 per ADS) were based on 4,273,769,436 weighted average number of shares outstanding in 2Q20.

 

2Q20 Results Highlights – ATM2

 

lCost of revenues was NT$54,434 million for the quarter, up by 3% sequentially.

 

-Raw material cost totaled NT$19,026 million for the quarter, representing 27% of total net revenues.

 

-Labor cost totaled NT$12,045 million for the quarter, representing 17% of total net revenues.

 

-Depreciation, amortization and rental expenses totaled NT$11,080 million for the quarter.

 

lGross margin increased 1.6 percentage points to 21.7% in 2Q20 from 20.1% in 1Q20.

 

lOperating margin was 10.4% in 2Q20, compared to 8.4% in 1Q20.

 

2Q20 Results Highlights – EMS

 

lCost of revenues for the quarter was NT$35,979 million, up by 21% sequentially.

 

-Raw material cost totaled NT$31,081 million for the quarter, representing 78% of total net revenues.

 

-Labor cost totaled NT$1,358 million for the quarter, representing 3% of total net revenues.

 

-Depreciation, amortization and rental expenses totaled NT$487 million for the quarter.

 

lGross margin increased 0.1 percentage points to 9.4% in 2Q20 from 9.3% in 1Q20.

 

 

2 ATM stands for Semiconductor Assembly, Testing and Material.

 

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lOperating margin increased to 3.1% in 2Q20 from 2.4% in 1Q20.

 

LIQUIdiTY AND CAPITAL RESOURCES

 

lCapital expenditures in 2Q20 totaled US$495 million, of which US$287 million were used in packaging operations, US$133 million in testing operations, US$70 million in EMS operations and US$5 million in interconnect materials operations and others.

 

lAs of June 30, 2020, total unused credit lines amounted to NT$253,777 million.

 

lCurrent ratio was 1.17 and net debt to equity ratio was 0.70 as of June 30, 2020.

 

lTotal number of employees was 95,448 as of June 30, 2020, compared to 96,296 as of March 31, 2020.

 

Business Review

 

Customers

 

ATM consolidated Basis

 

lOur five largest customers together accounted for approximately 50% of our total net revenues in 2Q20, compared to 49% in 1Q20. Two customers each accounted for more than 10% of our total net revenues in 2Q20 individually.

 

lOur top 10 customers both contributed 61% of our total net revenues in 2Q20 and 1Q20.

 

lOur customers that are integrated device manufacturers or IDMs both accounted for 29% of our total net revenues in 2Q20 and 1Q20.

 

EMS Basis

 

lOur five largest customers together accounted for approximately 78% of our total net revenues in 1Q20, compared to 76% in 1Q20. One customer accounted for more than 10% of our total net revenues in 2Q20.

 

lOur top 10 customers contributed 89% of our total net revenues in 2Q20, compared to 88% in 1Q20.

 

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 http://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 2019 Annual Report on Form 20-F filed on March 31, 2020.

 

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Supplemental Financial Information

 

Consolidated Operations 

  2Q/20 1Q/20 2Q/19
EBITDA (NT$ Millions) 22,488 19,061 18,072

 

ATM Consolidated Operations 

  2Q/20 1Q/20 2Q/19
Net Revenues (NT$ Millions) 69,516 66,209 59,594
Revenues by Application      
Communication 54% 54% 51%
Computer 14% 15% 14%
Automotive, Consumer & Others 32% 31% 35%
Revenues by Type      
Bumping, Flip Chip, WLP & SiP 38% 38% 34%
Wirebonding 35% 36% 39%
Discrete and Others 7% 7% 8%
Testing 18% 17% 17%
Material 2% 2% 2%
Capacity & EBITDA      
CapEx (US$ Millions)* 424 394 423
EBITDA (NT$ Millions) 20,037 17,693 16,512
Number of Wirebonders 24,667 24,780 25,059
Number of Testers 5,790 5,554 5,003

 

 

EMS Operations 

  2Q/20 1Q/20 2Q/19
Net Revenues (NT$ Millions) 39,709 32,727 31,533
Revenues by End Application      
Communication 46% 36% 40%
Computer & Storage 12% 14% 14%
Consumer 28% 33% 24%
Industrial 10% 11% 15%
Automotive 3% 6% 6%
Others 1% 0% 1%
Capacity      
CapEx (US$ Millions)* 70 15 21

* Capital expenditure excludes building construction costs.

 

 

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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 six months ended
 

Jun. 30

2020

 

Mar. 31 

2020

 

Jun. 30 

2019

 

Jun. 30 

2020 

 

Jun. 30 

2019 

 
Net revenues:                    
Packaging 53,622   51,613   47,602   105,235   91,459  
Testing 12,690   11,563   10,285   24,253   19,236  
EMS 39,703   32,721   31,524   72,424   66,471  
Others 1,534   1,460   1,330   2,994   2,436  
Total net revenues 107,549   97,357   90,741   204,906   179,602  
                     
Cost of revenues (88,740)   (81,201)   (76,772)   (169,941)   (154,248)  
Gross profit 18,809   16,156   13,969   34,965   25,354  
                     
Operating expenses:                    
Research and development (4,837)   (4,609)   (4,515)   (9,446)   (8,470)  
Selling, general and administrative (5,545)   (5,484)   (5,311)   (11,029)   (10,448)  
Total operating expenses (10,382)   (10,093)   (9,826)   (20,475)   (18,918)  
Operating income 8,427   6,063   4,143   14,490   6,436  
                     
Net non-operating (expenses) income:                    
Interest expense - net (771)   (893)   (909)   (1,664)   (1,875)  
Foreign exchange gain (loss) 718   (324)   (340)   394   (520)  
Gain (loss) on valuation of financial assets and liabilities

(17)

 

186

 

802

 

169

 

2,358

 
Gain (loss) on equity-method investments 105   (39)   114   66   (40)  
Others 417   244   614   661   700  
Total non-operating income (expenses) 452   (826)   281   (374)   623  
Income before tax 8,879   5,237   4,424   14,116   7,059  
                     
Income tax expense (1,646)   (1,175)   (1,624)   (2,821)   (2,029)  

Income from continuing operations and 

before noncontrolling interest 

7,233   4,062   2,800   11,295   5,030  
Noncontrolling interest (296)   (163)   (110)   (459)   (297)  
                     

Net income attributable to shareholders of the parent 

6,937

 

3,899

 

2,690

 

10,836

 

4,733

 
                     
Per share data:                    
Earnings (losses) per share                    
– Basic NT$1.63   NT$0.92   NT$0.63   NT$2.54   NT$1.11  
– Diluted NT$1.60   NT$0.89   NT$0.62   NT$2.49   NT$1.08  
                     
Earnings (losses) per equivalent ADS                    
– Basic US$0.109   US$0.061   US$0.041   US$0.170   US$0.072  
– Diluted US$0.107   US$0.060   US$0.040   US$0.166   US$0.070  
                     

Number of weighted average shares used in 

diluted EPS calculation (in thousands) 

4,273,770   4,280,990   4,256,799   4,279,072   4,256,265  
                     
FX (NTD/USD) 29.94   30.01   31.04   29.97   30.90  

 

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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 six months ended
 

Jun. 30

2020

 

Mar. 31 

2020

 

Jun. 30

2019

 

Jun. 30 

2020

 

Jun. 30 

2019

 
Net revenues:                    
Packaging 55,732   53,600   48,329   109,332   92,817  
Testing 12,693   11,566   10,286   24,259   19,237  
Direct Material 1,051   1,014   944   2,065   1,844  
Others 40   29   35   69   67  
Total net revenues 69,516   66,209   59,594   135,725   113,965  
                     
Cost of revenues (54,434)   (52,875)   (48,494)   (107,309)   (94,427)  
Gross profit 15,082   13,334   11,100   28,416   19,538  
                     
Operating expenses:                    
Research and development (3,777)   (3,648)   (3,414)   (7,425)   (6,457)  
Selling, general and administrative (4,081)   (4,114)   (4,020)   (8,195)   (7,861)  
Total operating expenses (7,858)   (7,762)   (7,434)   (15,620)   (14,318)  
Operating income 7,224   5,572   3,666   12,796   5,220  
                     

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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 six months ended
 

Jun. 30

2020

 

Mar. 31 

2020

 

Jun. 30 

2019

 

Jun. 30 

2020 

 

Jun. 30 

2019

 
Net revenues:                    
Total net revenues 39,709   32,727   31,533   72,436   66,492  
                     
Cost of revenues (35,979)   (29,679)   (28,657)   (65,658)   (60,686)  
Gross profit 3,730   3,048   2,876   6,778   5,806  
                     
Operating expenses:                    
Research and development (1,085)   (983)   (1,125)   (2,068)   (2,065)  
Selling, general and administrative (1,403)   (1,294)   (1,248)   (2,697)   (2,500)  
Total operating expenses (2,488)   (2,277)   (2,373)   (4,765)   (4,565)  
Operating income 1,242   771   503   2,013   1,241  
                     

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ASE Technology Holding Co., Ltd.

Summary of Consolidated Balance Sheet Data

(In NT$ millions)

(Unaudited)

 

  As of Jun. 30, 2020   As of Mar. 31, 2020
               
Current assets:              
Cash and cash equivalents     58,223       73,829
Financial assets – current     5,483       5,611
Notes and accounts receivable     73,763       73,573
Inventories     50,649       50,027
Others     14,395       13,575
Total current assets     202,513       216,615
               

Financial assets – non-current & Investments – equity 

method 

   

12,950

 

     

14,750

 

Property plant and equipment     238,757       234,419
Right-of-use assets     9,091       9,578
Intangible assets     77,154       77,941
Others     18,127       18,365
Total assets     558,592       571,668
               
Current liabilities:              
Short-term borrowings     42,312       51,620
Current portion of bonds payable & Current portion of long-term borrowings3     11,366       13,725
Notes and accounts payable     54,400       53,944
Others     64,547       53,719
Total current liabilities     172,625       173,008
               
Bonds payable     39,263       29,276
Long-term borrowings4     115,518       134,363
Other liabilities     17,251       17,555
Total liabilities     344,657       354,202
Shareholders of the parent     200,409       203,624
               
Non-controlling interests     13,526       13,842
Total liabilities & shareholders’ equity     558,592       571,668
               
               
Current Ratio     1.17      

1.25

 

Net Debt to Equity Ratio     0.70      

0.71

 

 

 

3 Current portion of long-term borrowings include long-term loans and notes payable.

4 Long-term borrowings include long-term loans and bills payable.

 

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ASE Technology Holding Co., Ltd.

Summary of Consolidated Cash Flow Statements

(In NT$ millions)

(Unaudited)

 

    For the three months ended   For the six months ended
    Jun. 30   Mar. 31   Jun. 30   Jun. 30   Jun. 30  
  2020 2020 2019 2020 2019
Cash Flows from Operating Activities:                      
Profit before income tax   8,879   5,237   4,424   14,116   7,059  
Depreciation & amortization   12,785   12,687   12,637   25,472   25,212  
Other operating activities items   (1,659)   (4,476)   (5,438)   (6,135)   (4,630)  
Net cash generated from operating activities   20,005   13,448   11,623   33,453   27,641  
Cash Flows from Investing Activities:                      
Net payments for property, plant and equipment   (16,587)   (13,605)   (11,451)   (30,192)   (20,329)  
Other investment activities items   1,902   (205)   (774)   1,697   1,976  
Net cash used in investing activities   (14,685)   (13,810)   (12,225)   (28,495)   (18,353)  
Cash Flows from Financing Activities:                      
Total net proceeds from (repayment of) borrowings   (18,900)   13,890   (2,521)   (5,010)   (5,693)  
Other financing activities items   (457)   194   (896)   (263)   (1,048)  
Net cash generated from (used in) financing activities   (19,357)   14,084   (3,417)   (5,273)   (6,741)  
Foreign currency exchange effect   (1,569)   (24)   (208)   (1,593)   1,025  
Net increase (decrease) in cash and cash equivalents   (15,606)   13,698   (4,227)   (1,908)   3,572  
Cash and cash equivalents at the beginning of period   73,829   60,131   59,317   60,131   51,518  
Cash and cash equivalents at the end of period   58,223   73,829   55,090   58,223   55,090  

 

 

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