ASE Technology Holding Co. Reports Q4 and 2024 Financial Results

[Nomad76]

ASE Technology Holding Co., Ltd., the leading provider of semiconductor assembly and testing services ("ATM") and the provider of electronic manufacturing services ("EMS"), today reported its unaudited net revenues of NT$162,264 million for 4Q24, up by 1.0% year-over-year and up by 1.3% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT9,312 million, down from NT$9,392 million in 4Q23 and down from NT$9,733 million in 3Q24. Basic earnings per share for the quarter were NT$2.15 (or US$0.134 per ADS), compared to NT$2.18 for 4Q23 and NT$2.25 for 3Q24. Diluted earnings per share for the quarter were NT$2.07 (or US$0.129 per ADS), compared to NT$2.13 for 4Q23 and NT$2.18 for 3Q24.

For the full year of 2024, the Company reported unaudited net revenues of NT$595,410 million and net income attributable to shareholders of the parent of NT$32,483 million. Basic earnings per share for the full year of 2024 were NT$7.52 (or US$0.470 per ADS). Diluted earnings per share for the full year of 2024 were NT$7.23 (or US$0.452 per ADS).



As of December 31, 2024, we have completed the purchase price allocation of business combination, and have retrospectively adjusted the consolidated financial results for the prior period.

Results of operations

4Q24 Results Highlights - Consolidated

• Net revenues from packaging operations, testing operations, EMS operations, and others represented approximately 43%, 10%, 46%, and 1% of the total net revenues for the quarter, respectively.
• Cost of revenues was NT$135,633 million for the quarter, up from NT$133,679 million in 3Q24.
  • Raw material cost totaled NT$84,434 million for the quarter, representing 52% of the total net revenues.
  • Labor cost totaled NT$16,749 million for the quarter, representing 10% of the total net revenues.
  • Depreciation, amortization and rental expenses totaled NT$13,961 million for the quarter.
• Gross margin decreased by 0.1 percentage points to 16.4% in 4Q24 from 16.5% in 3Q24.
• Operating margin was 6.9% in 4Q24, compared to 7.2% in 3Q24.
• In terms of non-operating items:
  • Net interest expense was NT$1,308 million.
  • Net foreign exchange loss was NT$2,787 million, primarily attributable to the appreciation of the U.S. dollar against the New Taiwan dollar.
  • Net gain on valuation of financial assets and liabilities was NT$4,017 million.
  • Net loss on equity-method investments was NT$133 million.
  • Other net non-operating income was NT$441 million, primarily attributable to miscellaneous income.
• Total non-operating income and expenses for the quarter was NT$230 million.
• Income before tax was NT$11,441 million in 4Q24, compared to NT$12,325 million in 3Q24.
• We recorded income tax expenses of NT$1,862 million for the quarter, compared to NT$2,052 million in 3Q24.
• Net income attributable to shareholders of the parent was NT$9,312 million in 4Q24, compared to NT$9,392 million in 4Q23 and NT$9,733 million in 3Q24.
• Our total number of shares outstanding at the end of the quarter was 4,414,930,537, including treasury stock owned by our subsidiaries in 4Q24. Our 4Q24 basic earnings per share of NT$2.15 (or US$0.134 per ADS) were based on 4,324,469,567 weighted average numbers of shares outstanding in 4Q24. Our 4Q24 diluted earnings per share of NT$2.07 (or US$0.129 per ADS) were based on 4,399,408,735 weighted average number of shares outstanding in 4Q24.

4Q24 Results Highlights - ATM

• Net revenues were NT$88,363 million for the quarter, up by 7.8% year-over-year and up by 3.0% sequentially.
• Cost of revenues was NT$67,754 million for the quarter, up by 7.9% year-over-year and up by 2.7% sequentially.
  • Raw material cost totaled NT$24,774 million for the quarter, representing 28% of the total net revenues.
  • Labor cost totaled NT$13,661 million for the quarter, representing 15% of the total net revenues.
  • Depreciation, amortization and rental expenses totaled NT$12,508 million for the quarter.
• Gross margin increased by 0.2 percentage points to 23.3% in 4Q24 from 23.1% in 3Q24.
• Operating margin was 10.7% in both 4Q24 and 3Q24.

4Q24 Results Highlights - EMS

• Net revenues were NT$74,895 million, down by 5.4% year-over-year and down by 0.6% sequentially.
• Cost of revenues for the quarter was NT$68,713 million, down by 5.2% year-over-year and up by 0.1% sequentially.
  • Raw material cost totaled NT$60,178 million for the quarter, representing 80% of the total net revenues.
  • Labor cost totaled NT$2,980 million for the quarter, representing 4% of the total net revenues.
  • Depreciation, amortization and rental expenses totaled NT$1,191 million for the quarter.
• Gross margin decreased by 0.7 percentage points to 8.3% in 4Q24 from 9.0% in 3Q24.
• Operating margin was 2.7% in 4Q24, compared to 3.3% in 3Q24.

2024 Full-Year Results Highlights - Consolidated

• Net revenues for the full year of 2024 amounted to NT$595,410 million, up by 2.3% from the full year of 2023. Net revenues from packaging operations, testing operations, EMS operations and others represented approximately 44%, 9%, 46% and 1% of total net revenues for the year, respectively.
• Cost of revenue for the year of 2024 was NT$498,478 million, compared to NT$490,157 million in 2023.
  • Raw material cost totaled NT$306,359 million for the year, representing 51% of total net revenues.
  • Labor cost totaled NT$64,268 million for the year, representing 11% of total net revenues.
  • Depreciation, amortization and rental expenses totaled NT$54,254 million for the year.
• Gross margin increased by 0.5 percentage points to 16.3% in 2024 from 15.8% in 2023.
• Operating margin decreased to 6.6% in 2024 from 6.9% in 2023.
• Total non-operating income for the year was NT$2,517 million, compared to NT$2,272 million in 2023.
• Income before tax was NT$41,684 million in 2024. We recognized an income tax expense of NT$7,758 million for the year.
• Net income attributable to shareholders of the parent amounted to NT$32,483 million in 2024, compared to NT$31,725 million in 2023.
• Our 2024 basic earnings per share of NT$7.52 (or US$0.470 per ADS) were based on 4,318,991,036 weighted average numbers of shares outstanding in 2024. Our
• 2024 diluted earnings per share of NT$7.23 (or US$0.452 per ADS) were based on 4,392,013,361 weighted average number of shares outstanding in 2024.

2024 Full-Year Results Highlights - ATM

• Cost of revenues for the full year of 2024 was NT$252,712 million, compared to NT$246,397 million in 2023.
  • Raw material cost totaled NT$90,307 million for the year, representing 28% of total net revenues.
  • Labor cost totaled NT$51,652 million for the year, representing 16% of total net revenues.
  • Depreciation, amortization and rental expenses totaled NT$48,392 million for the year.
• Gross margin increased to 22.5% in 2024 from 21.8% in 2023.
• Operating margin decreased to 9.8% in 2024 from 10.1% in 2023.

2024 Full-Year Results Highlights - EMS

• Cost of revenues was NT$248,135 million in 2024, up by 1.3% from 2023.
  • Raw material cost totaled NT$216,864 million for the year, representing 80% of total net revenues.
  • Labor cost totaled NT$12,161 million for the year, representing 4% of total net revenues.
  • Depreciation, amortization and rental expenses totaled NT$4,808 million for the year.
• Gross margin increased to 9.0% in 2024 from 8.7% in 2023.
• Operating margin decreased to 2.9% in 2024 from 3.3% in 2023.

Liquidity and capital resources

• Capital expenditures in 4Q24 totaled US$640 million, of which US$321 million was used in packaging operations, US$290 million in testing operations, US$24 million in EMS operations and US$5 million in interconnect materials operations and others.
• Capital expenditures in 2024 totaled US$1,876 million, of which US$957 million was used in packaging operations, US$815 million in testing operations, US$89 million in EMS operations and US$15 million in interconnect materials operations and others.
• Total unused credit lines amounted to NT$375,734 million as of December 31, 2024.
• Current ratio was 1.19 and net debt to equity ratio was 0.37 as of December 31, 2024.
• Total number of employees was 95,492 as of December 31, 2024, compared to 94,456 as of September 30, 2024.

Business review
Customers
ATM BASIS

• Our five largest customers together accounted for approximately 44% of our total net revenues in 4Q24, compared to 42% in 3Q24. Two customers each accounted for more than 10% of our total net revenues in 4Q24 individually.
• Our top 10 customers contributed 60% of our total net revenues in 4Q24, compared to 58% in 3Q24.
• Our customers that are integrated device manufacturers or IDMs accounted for 32% of our total net revenues in 4Q24, compared to 34% in 3Q24.

EMS BASIS

• Our five largest customers together accounted for approximately 72% of our total net revenues in 4Q24, compared to 71% in 3Q24. One customer accounted for more than 10% of our total net revenues in 4Q24.
• Our top 10 customers contributed 78% of our total net revenues in 4Q24, compared to 77% in 3Q24.

Presentation deck follows:


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[Philaphlous]

Big revenue for a company that produces little products...well technically the machinery is pretty big. It's the machinery that produces tiny things...

 

[Wirko]

They have an interesting logo, half Mac, half Windows.

 

[Nomad76]

Big revenue for a company that produces little products...well technically the machinery is pretty big. It's the machinery that produces tiny things...

Just some sidenotes, NVIDIA is a client (among others), also.. "Total number of employees was 95,492"..