Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]

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

October 26, 2023

Commission File Number 001-16125

ASE Technology Holding Co., Ltd.
(Translation of registrant’s name into English)

26, Chin 3rd Road Kaohsiung, 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 ☐

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: October 26, 2023	By:	/s/ Joseph Tung
		Name: Joseph Tung
		Title: Chief Financial Officer

Investor Relations Contact:

ir@aseglobal.com

Tel: +886.2.6636.5678

https://www.aseglobal.com

ASE Technology Holding Co., Ltd. Reports Its Unaudited Consolidated Financial Results for the Third Quarter of 2023

Taipei, October 26, 2023 – 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 revenues1 of NT$154,167 million for 3Q23, down by 18% year-over-year and up by 13% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$8,776 million, down from NT$17,465 million in 3Q22 and up from NT$7,740 million in 2Q23. Basic earnings per share for the quarter were NT$2.04 (or US$0.130 per ADS), compared to NT$4.03 for 3Q22 and NT$1.80 for 2Q23. Diluted earnings per share for the quarter were NT$2.00 (or US$0.127 per ADS), compared to NT$3.92 for 3Q22 and NT$1.76 for 2Q23.

RESULTS OF OPERATIONS

3Q23 Results Highlights – Consolidated

Net revenues from packaging operations, testing operations, EMS operations, and others represented approximately 45%, 8%, 46%, and 1% of the total net revenues for the quarter, respectively.

Cost of revenues was NT$129,251 million for the quarter, up from NT$114,534 million in 2Q23.

Raw material cost totaled NT$82,961 million for the quarter, representing 54% of the total net revenues.

Labor cost totaled NT$15,448 million for the quarter, representing 10% of the total net revenues.

Depreciation, amortization and rental expenses totaled NT$13,104 million for the quarter.

Gross margin increased by 0.2 percentage points to 16.2% in 3Q23 from 16.0% in 2Q23.

Operating margin was 7.4% in 3Q23, compared to 6.9% in 2Q23.

In terms of non-operating items:

Net interest expense was NT$1,247 million.

Net foreign exchange loss was NT$2,090 million, primarily attributable to the appreciation of the U.S. dollar against the New Taiwan dollar.

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.

Net gain on valuation of financial assets and liabilities was NT$2,820 million.

Net gain on equity-method investments was NT$656 million.

Other net non-operating income was NT$708 million, primarily attributable to miscellaneous income. Total non-operating income for the quarter was NT$847 million.

Income before tax was NT$12,252 million in 3Q23, compared to NT$10,111 million in 2Q23. We recorded income tax expenses of NT$2,890 million for the quarter, compared to NT$1,914 million in 2Q23.

Net income attributable to shareholders of the parent was NT$8,776 million in 3Q23, compared to NT$17,465 million in 3Q22 and NT$7,740 million in 2Q23.

Our total number of shares outstanding at the end of the quarter was 4,380,199,187, including treasury stock owned by our subsidiaries in 3Q23. Our 3Q23 basic earnings per share of NT$2.04 (or US$0.130 per ADS) were based on 4,296,577,819 weighted average numbers of shares outstanding in 3Q23. Our 3Q23 diluted earnings per share of NT$2.00 (or US$0.127 per ADS) were based on 4,347,752,000 weighted average number of shares outstanding in 3Q23.

3Q23 Results Highlights – ATM

Net revenues were NT$83,684 million for the quarter, down by 15% year-over-year and up by 10% sequentially.

Cost of revenues was NT$65,094 million for the quarter, down by 7% year-over-year and up by 9% sequentially.

Raw material cost totaled NT$25,373 million for the quarter, representing 30% of the total net revenues.

Labor cost totaled NT$12,463 million for the quarter, representing 15% of the total net revenues.

Depreciation, amortization and rental expenses totaled NT$11,752 million for the quarter.

Gross margin increased by 1.0 percentage points to 22.2% in 3Q23 from 21.2% in 2Q23.

Operating margin was 10.5% in 3Q23, compared to 9.7% in 2Q23.

3Q23 Results Highlights – EMS

Net revenues were NT$70,970 million, down by 22% year-over-year and up by 18% sequentially.

Cost of revenues for the quarter was NT$64,500 million, down by 21% year-over-year and up by 18% sequentially.

Raw material cost totaled NT$57,545 million for the quarter, representing 81% of the total net revenues.

Labor cost totaled NT$2,870 million for the quarter, representing 4% of the total net revenues.

Depreciation, amortization and rental expenses totaled NT$1,093 million for the quarter.

Gross margin decreased by 0.2 percentage points to 9.1% in 3Q23 from 9.3% in 2Q23.

Operating margin was 3.9% in 3Q23, compared to 3.5% in 2Q23.

LIQUIdiTY AND CAPITAL RESOURCES

Capital expenditures in 3Q23 totaled US$239 million, of which US$121 million was used in packaging operations, US$89 million in testing operations, US$28 million in EMS operations and US$1 million in interconnect materials operations and others.

Total unused credit lines amounted to NT$347,011 million as of September 30, 2023.

Current ratio was 1.21 and net debt to equity ratio was 0.47 as of September 30, 2023.

Total number of employees was 93,289 as of September 30, 2023, compared to 93,950 as of June 30, 2023.

Business Review

Customers

ATM Basis

Our five largest customers together accounted for approximately 42% of our total net revenues in 3Q23, compared to 41% in 2Q23. One customer accounted for more than 10% of our total net revenues in 3Q23.

Our top 10 customers contributed 57% of our total net revenues in both 3Q23 and 2Q23.

Our customers that are integrated device manufacturers or IDMs accounted for 31% of our total net revenues in 3Q23, compared to 33% in 2Q23.

EMS Basis

Our five largest customers together accounted for approximately 70% of our total net revenues in 3Q23, compared to 68% in 2Q23. One customer accounted for more than 10% of our total net revenues in 3Q23.

Our top 10 customers contributed 78% of our total net revenues in 3Q23, compared to 75% in 2Q23.

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, 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. 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 2022 Annual Report on Form 20-F filed on April 10, 2023.

Supplemental Financial Information

(Unaudited)

Consolidated Operations

	3Q23	2Q23	3Q22
EBITDA (NT$ million)	27,822	25,770	38,601

ATM Operations

	3Q23	2Q23	3Q22
Net Revenues (NT$ million)	83,684	76,108	98,831
Revenues by Application
Communication	52%	49%	53%
Computing	19%	18%	16%
Automotive, Consumer & Others	29%	33%	31%
Revenues by Type
Bumping, Flip Chip, WLP & SiP	44%	41%	42%
Wirebonding	32%	34%	34%
Others	8%	7%	7%
Testing	15%	16%	15%
Material	1%	2%	2%
Capacity & EBITDA
CapEx (US$ million)*	210	176	348
EBITDA (NT$ million)	23,117	21,643	31,657
Number of Wirebonders	26,215	25,880	25,887
Number of Testers	5,510	5,495	5,406

EMS Operations

	3Q23	2Q23	3Q22
Net Revenues (NT$ million)	70,970	60,424	90,665
Revenues by Application
Communication	34%	34%	37%
Computing	8%	8%	9%
Consumer	37%	33%	36%
Industrial	12%	15%	11%
Automotive	7%	8%	6%
Others	2%	2%	1%
Capacity
CapEx (US$ million)*	28	33	50

* Capital expenditure excludes building construction costs.

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 2023			Jun. 30 2023			Sep. 30 2022			Sep. 30 2023			Sep. 30 2022
Net revenues
Packaging		68,709			61,846			80,541			190,584			227,318
Testing		12,819			12,292			14,942			36,518			41,285
EMS		70,948			60,384			90,660			189,063			218,036
Others		1,691			1,753			2,483			5,168			6,817
Total net revenues		154,167			136,275			188,626			421,333			493,456

Cost of revenues		(129,251	)		(114,534	)		(150,654	)		(355,337	)		(392,625	)
Gross profit		24,916			21,741			37,972			65,996			100,831

Operating expenses
Research and development		(6,759	)		(6,218	)		(6,262	)		(18,549	)		(17,419	)
Selling, general and administrative		(6,752	)		(6,111	)		(8,027	)		(18,934	)		(23,010	)
Total operating expenses		(13,511	)		(12,329	)		(14,289	)		(37,483	)		(40,429	)
Operating income		11,405			9,412			23,683			28,513			60,402

Net non-operating income and expenses
Interest expense - net		(1,247	)		(1,100	)		(966	)		(3,424	)		(2,240	)
Foreign exchange gain (loss)		(2,090	)		(1,188	)		(2,818	)		(2,733	)		(5,223	)
Gain on valuation of financial assets and liabilities		2,820			1,914			2,878			4,837			5,827
Gain (loss) on equity-method investments		656			326			358			970			1,043
Others		708			747			480			2,070			1,605
Total non-operating income and expenses		847			699			(68	)		1,720			1,012
Income before tax		12,252			10,111			23,615			30,233			61,414

Income tax expense		(2,890	)		(1,914	)		(5,046	)		(6,582	)		(12,803	)
Income from operations and before non-controlling interests		9,362			8,197			18,569			23,651			48,611
Non-controlling interests		(586	)		(457	)		(1,104	)		(1,318	)		(2,251	)

Net income attributable to shareholders of the parent		8,776			7,740			17,465			22,333			46,360

Per share data:
Earnings per share
– Basic		NT$2.04			NT$1.80			NT$4.03			NT$5.20			NT$10.74
– Diluted		NT$2.00			NT$1.76			NT$3.92			NT$5.05			NT$10.34

Earnings per equivalent ADS
– Basic		US$0.130			US$0.118			US$0.268			US$0.338			US$0.739
– Diluted		US$0.127			US$0.115			US$0.260			US$0.328			US$0.711

Number of weighted average shares used in diluted EPS calculation ( in thousand shares)		4,347,752			4,342,948			4,373,878			4,346,129			4,368,634

FX (NTD/USD)		31.45			30.57			30.10			30.81			29.07

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 2023			Jun. 30 2023			Sep. 30 2022			Sep. 30 2023			Sep. 30 2022
Net revenues
Packaging		69,731			62,607			82,090			193,108			231,905
Testing		12,819			12,292			14,941			36,518			41,284
Direct Material		1,098			1,165			1,765			3,369			4,532
Others		36			44			35			116			133
Total net revenues		83,684			76,108			98,831			233,111			277,854

Cost of revenues		(65,094	)		(59,947	)		(69,999	)		(183,611	)		(198,154	)
Gross profit		18,590			16,161			28,832			49,500			79,700

Operating expenses
Research and development		(5,344	)		(4,748	)		(4,901	)		(14,361	)		(13,491	)
Selling, general and administrative		(4,426	)		(4,008	)		(5,268	)		(12,505	)		(15,540	)
Total operating expenses		(9,770	)		(8,756	)		(10,169	)		(26,866	)		(29,031	)
Operating income		8,820			7,405			18,663			22,634			50,669

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 2023			Jun. 30 2023			Sep. 30 2022			Sep. 30 2023			Sep. 30 2022
Net revenues
Total net revenues		70,970			60,424			90,665			189,127			218,049

Cost of revenues		(64,500	)		(54,785	)		(81,467	)		(172,451	)		(196,821	)
Gross profit		6,470			5,639			9,198			16,676			21,228

Operating expenses
Research and development		(1,453	)		(1,527	)		(1,392	)		(4,304	)		(4,021	)
Selling, general and administrative		(2,250	)		(2,023	)		(2,676	)		(6,191	)		(7,210	)
Total operating expenses		(3,703	)		(3,550	)		(4,068	)		(10,495	)		(11,231	)
Operating income		2,767			2,089			5,130			6,181			9,997

ASE Technology Holding Co., Ltd.

Summary of Consolidated Balance Sheet Data

(In NT$ million)

(Unaudited)

	As of Sep. 30, 2023		As of Jun. 30, 2023
Current assets
Cash and cash equivalents		62,812		59,351
Financial assets – current		9,055		7,040
Trade receivables		114,078		98,671
Inventories		76,953		77,568
Others		29,791		28,400
Total current assets		292,689		271,030

Financial assets – non-current & Investments – equity method		28,402		26,761
Property, plant and equipment		267,316		262,604
Right-of-use assets		10,758		10,691
Intangible assets		70,538		71,298
Others		31,381		30,137
Total assets		701,084		672,521

Current liabilities
Short-term borrowings2		69,639		37,798
Current portion of bonds payable & Current portion of long-term borrowings		24,219		18,191
Trade payables		79,053		67,225
Others		68,600		102,551
Total current liabilities		241,511		225,765

Bonds payable		23,589		33,462
Long-term borrowings3		94,322		90,224
Other liabilities		26,026		25,653
Total liabilities		385,448		375,104

Equity attributable to shareholders of the parent		295,611		278,624
Non-controlling interests		20,025		18,793
Total liabilities & shareholders’ equity		701,084		672,521


Current ratio		1.21		1.20
Net debt to equity ratio		0.47		0.41

² Short-term borrowings include short-term loans and bills payable.

³ Long-term borrowings include long-term loans and bills payable.

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			Jun. 30			Sep. 30			Sep. 30			Sep. 30
	2023			2023			2022			2023			2022
Cash Flows from Operating Activities
Profit before income tax		12,252			10,111			23,615			30,233			61,414
Depreciation & amortization		14,568			14,488			13,947			43,495			41,199
Other operating activities items		(5,940	)		(8,643	)		(18,944	)		(6,134	)		(41,788	)
Net cash generated from operating activities		20,880			15,956			18,618			67,594			60,825
Cash Flows from Investing Activities
Net payments for property, plant and equipment		(14,471	)		(12,146	)		(17,219	)		(41,824	)		(51,693	)
Other investment activities items		(152	)		(2,285	)		288			(2,022	)		(710	)
Net cash used in investing activities		(14,623	)		(14,431	)		(16,931	)		(43,846	)		(52,403	)
Cash Flows from Financing Activities
Total net proceeds from (repayment of) borrowings and bonds		28,640			(3,395	)		1,111			13,624			(13,179	)
Dividends paid		(37,841	)		-			(29,991	)		(37,841	)		(29,991	)
Other financing activities items		(38	)		(1,056	)		(228	)		(977	)		(1,390	)
Net cash used in financing activities		(9,239	)		(4,451	)		(29,108	)		(25,194	)		(44,560	)
Foreign currency exchange effect		6,444			481			6,933			6,479			12,423
Net increase (decrease) in cash and cash equivalents		3,462			(2,445	)		(20,488	)		5,033			(23,715	)
Cash and cash equivalents at the beginning of period		59,351			62,056			72,846			58,040			76,073
Cash and cash equivalents at the end of period		62,813			59,611			52,358			63,073			52,358
Cash and cash equivalents in the consolidated balance sheet		62,812			59,351			52,358			62,812			52,358
Cash and cash equivalents included in disposal groups held for sale		1			260			-			261			-