6-K 1 dp105892_6k.htm FORM 6-K

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

 

April 30, 2019

 

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: April 30, 2019 By:     /s/ Joseph Tung
    Name: Joseph Tung
    Title: Chief Financial Officer

 

 

 

IR Contact:

 

Iris Wu, Senior Manager

iris.wu@asetechholding.com

Tel: +886.2.6636.5678

http://www.aseglobal.com

US contact:

Echo Lin, Senior Associate

echo.lin@asetechholding.com

+1.510.687.2491

Grace Teng, Manager

grace_teng@aseglobal.com

Tel: +886.2.6636.5678

 

ASE Technology Holding Co., Ltd. Reports Unaudited Consolidated Financial
Results for the First Quarter of 2019

 

Taipei, Taiwan, R.O.C., April 30, 2019 – ASE Technology Holding Co., Ltd. (TAIEX: 3711, NYSE: ASX) (“We”, “ASEH”, or the “Company”) was established following the completion of the merger between Advanced Semiconductor Engineering, Inc. (“ASE”) and Siliconware Precision Industries Co., Ltd. on April 30, 2018. ASE is the Company’s predecessor entity; therefore, the financial results of the Company for periods before merger are prepared under the assumption that the Company owned 100% shareholdings of ASE at the very beginning. The financial results after April 30, 2018, including both 1Q19 and 4Q18, reflect full quarters of combined operations following the completion of the merger. The financial results before April 30, 2018 reflect the operations of ASE and its subsidiaries prior to the establishment of the Company. As a result, the Company’s financial results for 1Q19 and 4Q18 may not be comparable to that for 1Q18. ASEH, the leading provider of semiconductor manufacturing services in assembly and test, today reported unaudited net revenues1 of NT$88,861 million for 1Q19, up by 37% year-over-year and down by 22% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$2,043 million, down from a net income attributable to shareholders of the parent of NT$2,096 million in 1Q18 and down from a net income attributable to shareholders of the parent of NT$5,446 million in 4Q18. Basic earnings per share for the quarter were NT$0.48 (or US$0.031 per ADS), compared to adjusted basic earnings per share of NT$0.49 for 1Q18 and basic earnings per share of NT$1.28 for 4Q18. Diluted earnings per share for the quarter were NT$0.46 (or US$0.030 per ADS), compared to adjusted diluted earnings per share of NT$0.48 for 1Q18 and diluted earnings per share of NT$1.24 for 4Q18.

 

RESULTS OF OPERATIONS

 

1Q19 Results Highlights – Consolidated

 

lNet revenue contribution from packaging operations, testing operations, EMS operations and others, each represented approximately 50%, 10%, 39% and 1%, respectively, of total net revenues for the quarter.

 

lCost of revenue was NT$77,476 million for the quarter, down from NT$95,344 million in 4Q18.

 

 

 

 

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.

 

 

1

 

-Raw material cost totaled NT$43,928 million for the quarter, representing 49% of total net revenues.

 

-Labor cost totaled NT$11,931 million for the quarter, representing 13% of total net revenues.

 

-Depreciation, amortization and rental expenses totaled NT$11,572 million for the quarter.

 

lGross margin decreased 3.6 percentage points to 12.8% in 1Q19 from 16.4% in 4Q18.

 

lOperating margin was 2.6% in 1Q19 compared to 7.5% in 4Q18.

 

lIn terms of non-operating items:

 

-Net interest expense was NT$966 million.

 

-Net foreign exchange loss of NT$180 million was primarily attributable to the appreciation of U.S. dollar against NT dollar.

 

-Gain on valuation of financial assets and liabilities was NT$1,556 million.

 

-Net loss on equity-method investments was NT$154 million.

 

-             Other net non-operating incomes of NT$86 million were primarily attributable to miscellaneous incomes. Total non-operating incomes for the quarter were NT$342 million.

 

lIncome before tax was NT$2,635 million for 1Q19, compared to NT$7,235 million in 4Q18. We recorded income tax expenses of NT$405 million for the quarter, compared to NT$1,342 million in 4Q18.

 

lIn 1Q19, net income attributable to shareholders of the parent was NT$2,043 million, compared to net income attributable to shareholders of the parent of NT$2,096 million in 1Q18 and net income attributable to shareholders of the parent of NT$5,446 million in 4Q18.

 

lOur total number of shares outstanding at the end of the quarter was 4,322,625,732, including treasury stock owned by our subsidiaries. Our 1Q19 basic earnings per share of NT$0.48 (or US$0.031 per ADS) were based on 4,249,572,979 weighted average numbers of shares outstanding in 1Q19. Our 1Q19 diluted earnings per share of NT$0.46 (or US$0.030 per ADS) were based on 4,255,559,025 weighted average number of shares outstanding in 1Q19.

 

1Q19 Results Highlights – ATM2

 

lCost of revenues was NT$45,933 million for the quarter, down by 8% sequentially.

 

-Raw material cost totaled NT$15,281 million for the quarter, representing 28% of total net revenues.

 

-Labor cost totaled NT$10,493 million for the quarter, representing 19% of total net revenues.

 

-Depreciation, amortization and rental expenses totaled NT$10,970 million for the quarter.

 

 

 

2 ATM stands for Semiconductor Assembly, Testing and Material.

 

2

lGross margin decreased 6.3 percentage points to 15.5% in 1Q19 from 21.8% in 4Q18.

 

lOperating margin was 2.9% in 1Q19 compared to 9.8% in 4Q18.

 

1Q19 Results Highlights – EMS

 

lCost of revenues for the quarter was NT$32,029 million, down by 31% sequentially.

 

-Raw material cost totaled NT$28,702 million for the quarter, representing 82% of total net revenues.

 

-Labor cost totaled NT$1,417 million for the quarter, representing 4% of total net revenues.

 

-Depreciation, amortization and rental expenses totaled NT$484 million for the quarter.

 

lGross margin decreased to 8.4% in 1Q19 from 9.1% in 4Q18.

 

lOperating margin increased to 2.1% in 1Q19 from 4.3% in 4Q18.

 

LIQUIdiTY AND CAPITAL RESOURCES

 

lCapital expenditures in 1Q19 totaled US$239 million, of which US$156 million were used in packaging operations, US$72 million in testing operations, US$8 million in EMS operations and US$3 million in interconnect materials operations and others.

 

lAs of March 31, 2019, total unused credit lines amounted to NT$207,722 million.

 

lCurrent ratio was 1.23 and net debt to equity ratio was 0.58 as of March 31, 2019.

 

lTotal number of employees was 90,370 as of March 31, 2019, compared to 93,891 as of December 31, 2018.

 

Business Review

 

Customers

 

ATM consolidated Basis

 

lOur five largest customers together accounted for approximately 47% of our total net revenues in 1Q19, compared to 41% in 4Q18. One customer accounted for more than 10% of our total net revenues in 1Q19.

 

lOur top 10 customers contributed 60% of our total net revenues for the quarter, compared to 56% in 4Q18.

 

lOur customers that are integrated device manufacturers or IDMs accounted for 35% of our total net revenues both in 1Q19 and in 4Q18.

 

EMS Basis

 

lOur five largest customers together accounted for approximately 75% of our total net revenues in 1Q19, compared to 82% in 4Q18. One customer accounted for more than 10% of our total net revenues in 1Q19.

 

lOur top 10 customers contributed 87% of our total net revenues during the quarter in 1Q19, compared to 91% in 4Q18.

 

3

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 2018 Annual Report on Form 20-F filed on April 26, 2019.

 

4

 

 

Supplemental Financial Information

 

Consolidated Operations

  1Q/19 4Q/18 1Q/18
EBITDA (NT$ Millions) 16,523 21,082 11,893

 

ATM Consolidated Operations

  1Q/19 4Q/18 1Q/18
Net Revenues (NT$ Millions) 54,371 64,120 37,072
Revenues by Application      
Communication 53% 52% 46%
Computer 13% 14% 13%
Automotive, Consumer & Others 34% 34% 41%
Revenues by Type      
Bumping, Flip Chip, WLP & SiP 34% 33% 26%
Wirebonding 40% 39% 47%
Discrete and Others 8% 9% 9%
Testing 16% 17% 15%
Material 2% 2% 3%
Capacity & EBITDA      
CapEx (US$ Millions)* 231 237 202
EBITDA (NT$ Millions) 14,620 18,271 10,393
Number of Wirebonders 25,033 25,172 16,015
Number of Testers 4,857 4,822 3,801

 

EMS Operations

  1Q/19 4Q/18 1Q/18
Net Revenues (NT$ Millions) 34,959 50,745 28,691
Revenues by End Application      
Communication 29% 32% 42%
Computer & Storage 13% 10% 17%
Consumer 38% 44% 24%
Industrial 14% 10% 9%
Automotive 5% 4% 7%
Others 1% 0% 1%
Capacity      
CapEx (US$ Millions)* 8 11 7

* Capital expenditure excludes building construction costs.

 

5

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
2019
  Dec. 31
2018
  Mar. 31
2018
Net revenues:         
Packaging   43,857    51,149    29,368 
Testing   8,951    10,919    5,679 
EMS   34,947    50,736    28,686 
Others   1,106    1,224    1,233 
Total net revenues   88,861    114,028    64,966 
                
Cost of revenues   (77,476)   (95,344)   (54,578)
Gross profit   11,385    18,684    10,388 
                
Operating expenses:               
Research and development   (3,955)   (4,293)   (2,775)
Selling, general and administrative   (5,137)   (5,818)   (3,297)
Total operating expenses   (9,092)   (10,111)   (6,072)
Operating income   2,293    8,573    4,316 
                
Net non-operating (expenses) income:               
Interest expense - net   (966)   (923)   (357)
Foreign exchange gain (loss)   (180)   (311)   502 
Gain (loss) on valuation of financial assets and liabilities   1,556    140    (379)
Gain (loss) on equity-method investments   (154)   6    (444)
Others   86    (250)   138 
Total non-operating income (expenses)   342    (1,338)   (540)
Income before tax   2,635    7,235    3,776 
                
Income tax expense   (405)   (1,342)   (1,420)
Income from continuing operations and before noncontrolling interest    2,230    5,893    2,356 
Noncontrolling interest   (187)   (447)   (260)
                
Net income attributable to shareholders of the parent    2,043    5,446    2,096 
                
Per share data3:               
Earnings (losses) per share               
– Basic   NT$0.48    NT$1.28    NT$0.49 
– Diluted   NT$0.46    NT$1.24    NT$0.48 
                
Earnings (losses) per equivalent ADS               
– Basic   US$0.031    US$0.083    US$0.034 
– Diluted   US$0.030    US$0.081    US$0.032 
                
Number of weighted average shares used in diluted EPS calculation (in thousands)    4,255,559    4,254,978    4,336,571 
                
FX (NTD/USD)   30.77    30.79    29.33 

 

 

3 Per share data for the three months ended March 31, 2018 has been retrospective adjusted to reflect the impact from the joint share exchange agreement.

 

 

6

 

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
  2019
  Dec. 31
  2018
  Mar. 31
2018
Net revenues:         
Packaging   44,488    52,068    30,313 
Testing   8,951    10,920    5,679 
Direct Material   900    1,093    1,050 
Others   32    39    30 
Total net revenues   54,371    64,120    37,072 
                
Cost of revenues   (45,933)   (50,158)   (29,371)
Gross profit   8,438    13,962    7,701 
                
Operating expenses:               
Research and development   (3,043)   (3,349)   (1,865)
Selling, general and administrative   (3,841)   (4,306)   (2,418)
Total operating expenses   (6,884)   (7,655)   (4,283)
Operating income   1,554    6,307    3,418 

 

 

 

 

 

7

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
  2019
  Dec. 31
  2018
  Mar. 31
  2018
Net revenues:         
Total net revenues   34,959    50,745    28,691 
                
Cost of revenues   (32,029)   (46,135)   (25,991)
Gross profit   2,930    4,610    2,700 
                
Operating expenses:               
Research and development   (940)   (967)   (926)
Selling, general and administrative   (1,252)   (1,463)   (832)
Total operating expenses   (2,192)   (2,430)   (1,758)
Operating income   738    2,180    942 

 

 

 

 

8

ASE Technology Holding Co., Ltd.

Summary of Consolidated Balance Sheet Data

(In NT$ millions)

(Unaudited)

 

   As of  Mar. 31 , 2019  As of  Dec. 31 , 2018
       
Current assets:      
Cash and cash equivalents   59,317    51,518 
Financial assets – current   11,099    13,802 
Notes and accounts receivable   63,391    79,481 
Inventories   45,369    46,688 
Others   9,657    10,070 
Total current assets   188,833    201,559 
           
Financial assets – non current & Investments – equity method    13,285    12,555 
Property plant and equipment   212,639    214,593 
Right-of-use assets   10,531    —   
Intangible assets   79,630    80,216 
Prepaid lease payments   —      10,765 
Others   20,404    13,683 
Total assets   525,322    533,371 
           
Current liabilities:          
Short-term borrowings   49,207    43,264 
Current portion of long-term borrowings   17,197    10,779 
Notes and accounts payable   43,095    56,884 
Others   43,523    45,372 
Total current liabilities   153,022    156,299 
           
Bonds payable   16,987    16,986 
Long-term borrowings   112,038    127,119 
Other liabilities   17,378    12,297 
Total liabilities   299,425    312,701 
           
Shareholders of the parent   207,766    203,023 
           
Noncontrolling interest   18,131    17,647 
Total liabilities & shareholders’ equity   525,322    533,371 
           
           
Current Ratio   1.23    1.29 
           
Net Debt to Equity   0.58    0.60 

 

 

9

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
   2019  2018  2018
Cash Flows from Operating Activities:         
Profit before income tax   2,635    7,235    3,776 
Depreciation & amortization   12,575    12,220    7,232 
Other operating activities items   813    (920)   (2,276)
Net cash generated from operating activities   16,023    18,535    8,732 
Cash Flows from Investing Activities:               
Net payments for property, plant and equipment    (8,878)   (9,993)   (5,547)
Other investment activities items   2,750    (6,230)   (3,993)
Net cash used in investing activities   (6,128)   (16,223)   (9,540)
Cash Flows from Financing Activities:               
Total net repayment of debts   (3,172)   (10,208)   (504)
Other financing activities items   (157)   3,255    (1,585)
Net cash used in financing activities   (3,329)   (6,953)   (2,089)
Foreign currency exchange effect   1,233    824    (35)
Net increase (decrease) in cash and cash equivalents    7,799    (3,817)   (2,932)
Cash and cash equivalents at the beginning of period   51,518    55,335    46,078 
Cash and cash equivalents at the end of period    59,317    51,518    43,146 

 

10