TAIPEI, Taiwan, R.O.C., Oct. 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$150,665 million for 3Q21, up by 22% year-over-year and up by 19% sequentially.  Net income attributable to shareholders of the parent for the quarter totaled NT$14,176 million, up from a net income attributable to shareholders of the parent of NT$6,712 million in 3Q20 and up from a net income attributable to shareholders of the parent of NT$10,338 million in 2Q21.  Basic earnings per share for the quarter were NT$3.29 (or US$0.236 per ADS), compared to NT$1.57 for 3Q20 and NT$2.40 for 2Q21.  Diluted earnings per share for the quarter were NT$3.20 (or US$0.230 per ADS), compared to NT$1.54 for 3Q20 and NT$2.30 for 2Q21.

RESULTS OF OPERATIONS

3Q21 Results Highlights – Consolidated

• Net revenue contribution from packaging operations, testing operations, EMS operations and others, each represented approximately 49%, 9%, 41% and 1%, respectively, of total net revenues for the quarter.
• Cost of revenue was NT$119,881 million for the quarter, up from NT$102,122 million in 2Q21.

- Raw material cost totaled NT$73,552 million for the quarter, representing 49% of total net revenues.- Labor cost totaled NT$16,955 million for the quarter, representing 11% of total net revenues. - Depreciation, amortization and rental expenses totaled NT$12,710 million for the quarter.

• Gross margin increased 0.9 percentage points to 20.4% in 3Q21 from 19.5% in 2Q21.
• Operating margin was 12.2% in 3Q21, compared to 10.4% in 2Q21.
• In terms of non-operating items:

- Net interest expense was NT$562 million.- Net foreign exchange gain of NT$66 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$349 million.- Net gain on equity-method investments was NT$414 million.- Other net non-operating income of NT$479 million was primarily attributable to miscellaneous income.  Total non-operating income for the quarter was NT$48 million.

• Income before tax was NT$18,474 million for 3Q21, compared to NT$13,344 million in 2Q21.  We recorded income tax expenses of NT$3,630 million for the quarter, compared to NT$2,648 million in 2Q21.
• In 3Q21, net income attributable to shareholders of the parent was NT$14,176 million, compared to NT$6,712 million in 3Q20 and NT$10,338 million in 2Q21.
• Our total number of shares outstanding at the end of the quarter was 4,388,414,582, including treasury stock owned by our subsidiaries.  Our 3Q21 basic earnings per share of NT$3.29 (or US$0.236 per ADS) were based on 4,314,088,250 weighted average numbers of shares outstanding in 3Q21.  Our 3Q21 diluted earnings per share of NT$3.20 (or US$0.230 per ADS) were based on 4,370,715,418 weighted average number of shares outstanding in 3Q21.

3Q21 Results Highlights – ATM[2]

• Cost of revenues was NT$65,378 million for the quarter, up by 11% sequentially.

- Raw material cost totaled NT$24,441 million for the quarter, representing 27% of total net revenues.- Labor cost totaled NT$14,512 million for the quarter, representing 16% of total net revenues.- Depreciation, amortization and rental expenses totaled NT$11,615 million for the quarter.

• Gross margin increased 1.8 percentage points to 27.4% in 3Q21 from 25.6% in 2Q21.
• Operating margin was 17.3% in 3Q21, compared to 15.0% in 2Q21.

3Q21 Results Highlights – EMS

• Cost of revenues for the quarter was NT$55,244 million, up by 24% sequentially.

- Raw material cost totaled NT$48,978 million for the quarter, representing 80% of total net revenues.- Labor cost totaled NT$2,337 million for the quarter, representing 4% of total net revenues.- Depreciation, amortization and rental expenses totaled NT$886 million for the quarter.

• Gross margin increased 0.5 percentage points to 9.6% in 3Q21 from 9.1% in 2Q21.
• Operating margin was 4.3% in 3Q21, compared to 2.6% in 2Q21.

LIQUIDITY AND CAPITAL RESOURCES

• Capital expenditures in 3Q21 totaled US$468 million, of which US$294 million were used in packaging operations, US$101 million in testing operations, US$60 million in EMS operations and US$13 million in interconnect materials operations and others.
• As of September 30, 2021, total unused credit lines amounted to NT$261,539 million.
• Current ratio was 1.35 and net debt to equity ratio was 0.71 as of September 30, 2021.
• Total number of employees was 104,471 as of September 30, 2021, compared to 103,164 as of June 30, 2021.

Business Review

Customers

ATM CONSOLIDATEDBASIS

• Our five largest customers together accounted for approximately 44% of our total net revenues in 3Q21, compared to 43% in 2Q21. Two customers each accounted for more than 10% of our total net revenues in 3Q21 individually.
• Our top 10 customers contributed 55% of our total net revenues both in 3Q21 and 2Q21.
• Our customers that are integrated device manufacturers or IDMs accounted for 31% of our total net revenues both in 3Q21 and 2Q21. 

EMS BASIS

• Our five largest customers together accounted for approximately 74% of our total net revenues in 3Q21, compared to 70% in 2Q21.  One customer accounted for more than 10% of our total net revenues in 3Q21.
• Our top 10 customers contributed 81% of our total net revenues in 3Q21, compared to 78% in 2Q21.

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

ATM Consolidated Operations

EMS Operations

* 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)

ASE Technology Holding Co., Ltd.Summary of Consolidated Statement of Comprehensive Income Data – ATM (In NT$ millions, except per share data) (Unaudited)

ASE Technology Holding Co., Ltd.Summary of Consolidated Statement of Comprehensive Income Data – EMS (In NT$ millions, except per share data) (Unaudited)

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

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

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.