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ASE Technology Holding Co., Ltd. Reports Its Unaudited Consolidated Financial Results for the First Quarter of 2025

1. ASE Technology's revenues increased 11.6% year-over-year in Q1 2025. 2. Net income rose 33.5% from Q1 2024 but fell from Q4 2024. 3. Gross margin improved slightly to 16.8% amid varied operational performance. 4. Significant capital expenditures in semiconductor operations indicate growth focus. 5. Currency fluctuations pose risks affecting profitability and earnings.

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Why Bullish?

Despite sequential revenue declines, year-over-year growth signals ongoing demand improvement. Historical patterns suggest resilience from solid earnings despite current challenges.

How important is it?

Strong quarterly performance amidst challenges affects market sentiment positively. Its relevance to semiconductor sectors is significant as they influence tech stocks in ASX.

Why Short Term?

The immediate market reaction may be favorable in short-term due to growth indications. However, longer-term sustainability depends on managing costs and market dynamics.

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, /PRNewswire/ -- 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 revenues[1] of NT$148,153 million for 1Q25, up by 11.6% year-over-year and down by 8.7% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$7,554 million, up from NT$5,660 million in 1Q24 and down from NT$9,312 million in 4Q24.  Basic earnings per share for the quarter were NT$1.75 (or US$0.106 per ADS), compared to NT$1.31 for 1Q24 and NT$2.15 for 4Q24.  Diluted earnings per share for the quarter were NT$1.64 (or US$0.100 per ADS), compared to NT$1.27 for 1Q24 and NT$2.07 for 4Q24. We completed the purchase price allocation calculation in relation to Hirschmann acquisition as of September 30, 2024, and have retrospectively adjusted the consolidated financial results for 1Q24. RESULTS OF OPERATIONS 1Q25 Results Highlights – Consolidated Net revenues from packaging operations, testing operations, EMS operations, and others represented approximately 46%, 11%, 42%, and 1% of the total net revenues for the quarter, respectively. Cost of revenues was NT$123,260 million for the quarter, down from NT$135,633 million in 4Q24.- Raw material cost totaled NT$72,343 million for the quarter, representing 49% of the total net revenues.- Labor cost totaled NT$16,997 million for the quarter, representing 11% of the total net revenues.- Depreciation, amortization and rental expenses totaled NT$14,672 million for the quarter. Gross margin increased by 0.4 percentage points to 16.8% in 1Q25 from 16.4% in 4Q24. Operating margin was 6.5% in 1Q25, compared to 6.9% in 4Q24. In terms of non-operating items:- Net interest expense was NT$1,256 million.- Net foreign exchange loss was NT$1,675 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$2,873 million.- Net gain on equity-method investments was NT$40 million.- Other net non-operating income was NT$157 million, primarily attributable to miscellaneous income.Total non-operating income and expenses for the quarter was NT$139 million. Income before tax was NT$9,810 million in 1Q25, compared to NT$11,441 million in 4Q24. We recorded income tax expenses of NT$2,022 million for the quarter, compared to NT$1,862 million in 4Q24. Net income attributable to shareholders of the parent was NT$7,554 million in 1Q25, compared to NT$5,660 million in 1Q24 and NT$9,312 million in 4Q24. Our total number of shares outstanding at the end of the quarter was 4,418,995,632, including treasury stock owned by our subsidiaries in 1Q25. Our 1Q25 basic earnings per share of NT$1.75 (or US$0.106 per ADS) were based on 4,328,341,956 weighted average numbers of shares outstanding in 1Q25.  Our 1Q25 diluted earnings per share of NT$1.64 (or US$0.100 per ADS) were based on 4,410,238,275 weighted average number of shares outstanding in 1Q25. 1Q25 Results Highlights – ATM Net revenues were NT$86,668 million for the quarter, up by 17.3% year-over-year and down by 1.9% sequentially. Cost of revenues was NT$67,057 million for the quarter, up by 14.9% year-over-year and down by 1.0% sequentially.- Raw material cost totaled NT$23,566 million for the quarter, representing 27% of the total net revenues.- Labor cost totaled NT$14,050 million for the quarter, representing 16% of the total net revenues.- Depreciation, amortization and rental expenses totaled NT$13,238 million for the quarter. Gross margin decreased by 0.7 percentage points to 22.6% in 1Q25 from 23.3% in 4Q24. Operating margin was 9.6% in 1Q25, compared to 10.7% in 4Q24. 1Q25 Results Highlights – EMS Net revenues were NT$62,295 million, up by 4.9% year-over-year and down by 16.8% sequentially. Cost of revenues for the quarter was NT$56,767 million, up by 5.3% year-over-year and down by 17.4% sequentially.- Raw material cost totaled NT$49,087 million for the quarter, representing 79% of the total net revenues.- Labor cost totaled NT$2,845 million for the quarter, representing 5% of the total net revenues.- Depreciation, amortization and rental expenses totaled NT$1,169 million for the quarter. Gross margin increased by 0.6 percentage points to 8.9% in 1Q25 from 8.3% in 4Q24. Operating margin was 2.6% in 1Q25, compared to 2.7% in 4Q24. LIQUIDITY AND CAPITAL RESOURCES Equipment capital expenditures in 1Q25 totaled US$892 million, of which US$395 million was used in packaging operations, US$472 million in testing operations, US$23 million in EMS operations and US$2 million in interconnect materials operations and others. Total unused credit lines amounted to NT$358,413 million as of March 31, 2025. Current ratio was 1.04 and net debt to equity ratio was 0.41 as of March 31, 2025. Total number of employees was 96,436 as of March 31, 2025, compared to 95,492 as of December 31, 2024. BUSINESS REVIEW Customers ATM BASIS Our five largest customers together accounted for approximately 44% of our total net revenues in both 1Q25 and 4Q24.  Two customers each accounted for more than 10% of our total net revenues in 1Q25 individually. Our top 10 customers contributed 61% of our total net revenues in 1Q25, compared to 60% in 4Q24. Our customers that are integrated device manufacturers or IDMs accounted for 34% of our total net revenues in 1Q25, compared to 32% in 4Q24.  EMS BASIS Our five largest customers together accounted for approximately 68% of our total net revenues in 1Q25, compared to 72% in 4Q24. One customer accounted for more than 10% of our total net revenues in 1Q25. Our top 10 customers contributed 74% of our total net revenues in 1Q25, compared to 78% in 4Q24. 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, Philippines, 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.  These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995.  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 2024 Annual Report on Form 20-F filed on March 27, 2025. Supplemental Financial Information(Unaudited) Consolidated Operations 1Q25 4Q24 1Q24 EBITDA[2] (NT$ million) 27,628 28,797 23,939 ATM Operations 1Q25 4Q24 1Q24 Net Revenues (NT$ million) 86,668 88,363 73,908 Revenues by Application Communication 48 % 53 % 52 % Computing 22 % 17 % 18 % Automotive, Consumer & Others 30 % 30 % 30 % Revenues by Type Bumping, Flip Chip, WLP & SiP 46 % 47 % 43 % Wirebonding 28 % 27 % 30 % Others 6 % 7 % 9 % Testing 18 % 18 % 16 % Material 2 % 1 % 2 % Capacity & EBITDA Equipment CapEx (US$ million) 869 616 206 EBITDA[2] (NT$ million) 24,146 24,845 20,422 Number of Wirebonders 25,222 25,328 25,406 Number of Testers 6,686 6,300 5,611 EMS Operations 1Q25 4Q24 1Q24 Net Revenues (NT$ million) 62,295 74,895 59,365 Revenues by Application Communication 33 % 37 % 34 % Computing 11 % 9 % 12 % Consumer 31 % 33 % 27 % Industrial 13 % 11 % 12 % Automotive 10 % 8 % 12 % Others 2 % 2 % 3 % Capacity  Equipment CapEx (US$ million) 23 24 21 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 Mar. 31 2025 Dec. 31 2024 Mar. 31 2024 (Retrospectively Adjusted) Net revenues Packaging 68,411 70,285 59,458 Testing 16,004 15,713 12,102 EMS 61,860 74,243 59,326 Others 1,878 2,023 1,917 Total net revenues 148,153 162,264 132,803 Cost of revenues (123,260) (135,633) (111,982) Gross profit 24,893 26,631 20,821 Operating expenses Research and development (7,579) (7,676) (6,609) Selling, general and administrative (7,643) (7,744) (6,735) Total operating expenses (15,222) (15,420) (13,344) Operating income 9,671 11,211 7,477 Net non-operating income and expenses Interest expense - net (1,256) (1,308) (1,107) Foreign exchange loss - net (1,675) (2,787) (3,219) Gain on valuation of financial assets and liabilities - net 2,873 4,017 4,098 Gain (loss) on equity-method investments - net 40 (133) 57 Others - net 157 441 506 Total non-operating income and expenses 139 230 335 Income before tax 9,810 11,441 7,812 Income tax expense (2,022) (1,862) (1,893) Income from operations and before non-controlling interests 7,788 9,579 5,919 Non-controlling interests (234) (267) (259) Net income attributable to shareholders of the parent 7,554 9,312 5,660 Per share data: Earnings per share – Basic NT$1.75 NT$2.15 NT$1.31 – Diluted NT$1.64 NT$2.07 NT$1.27 Earnings per equivalent ADS – Basic US$0.106 US$0.134 US$0.084 – Diluted US$0.100 US$0.129 US$0.081 Number of weighted average shares used in diluted EPS calculation  (in thousand shares) 4,410,238 4,399,409 4,368,340 FX (NTD/USD) 32.79 32.16 31.30 ASE Technology Holding Co., Ltd.Summary of ATM Statement of Income Data(In NT$ million)(Unaudited) For the three months ended Mar. 31 2025 Dec. 31 2024 Mar. 31 2024 Net revenues: Packaging 69,360 71,342 60,388 Testing 16,004 15,713 12,102 Direct Material 1,219 1,233 1,338 Others 85 75 80 Total net revenues 86,668 88,363 73,908 Cost of revenues (67,057) (67,754) (58,351) Gross profit 19,611 20,609 15,557 Operating expenses: Research and development (6,043) (6,047) (5,135) Selling, general and administrative (5,233) (5,127) (4,345) Total operating expenses (11,276) (11,174) (9,480) Operating income 8,335 9,435 6,077 ASE Technology Holding Co., Ltd.Summary of EMS Statement of Income Data(In NT$ million)(Unaudited) For the three months ended Mar. 31 2025 Dec. 31 2024 Mar. 31 2024 (Retrospectively Adjusted) Net revenues 62,295 74,895 59,365 Cost of revenues (56,767) (68,713) (53,913) Gross profit 5,528 6,182 5,452 Operating expenses: Research and development (1,580) (1,673) (1,533) Selling, general and administrative (2,340) (2,523) (2,310) Total operating expenses (3,920) (4,196) (3,843) Operating income 1,608 1,986 1,609 ASE Technology Holding Co., Ltd.Summary of Consolidated Balance Sheet Data(In NT$ million)(Unaudited) As of Mar. 31, 2025 As of  Dec. 31 2024 Current assets Cash and cash equivalents 77,100 76,493 Financial assets – current 16,435 9,376 Trade receivables 109,717 113,420 Inventories 59,858 61,181 Others 15,542 14,815 Total current assets 278,652 275,285 Financial assets – non-current & Investments – equity -method 41,428 41,810 Property, plant and equipment 342,056 312,531 Right-of-use assets 11,754 11,851 Intangible assets 66,955 67,562 Others 33,332 31,659 Total assets 774,177 740,698 Current liabilities Short-term borrowings[3] 55,485 47,445 Current portion of bonds payable & Current portion of long-term borrowings 20,774 18,883 Trade payables 74,382 78,221 Others 117,101 86,391 Total current liabilities 267,742 230,940 Bonds payable 21,066 17,978 Long-term borrowings 126,708 121,750 Other liabilities 23,638 24,243 Total liabilities 439,154 394,911 Equity attributable to shareholders of the parent 311,522 323,523 Non-controlling interests 23,501 22,264 Total liabilities & shareholders' equity 774,177 740,698 Current ratio 1.04 1.19 Net debt to equity ratio 0.41 0.37 ASE Technology Holding Co., Ltd.Summary of Consolidated Statement of Cash Flow Data(In NT$ million)(Unaudited) For the three months ended Mar. 31 2025 Dec. 31 2024 Mar. 31 2024 (Retrospectively Adjusted) Cash Flows from Operating Activities: Income before tax 9,810 11,441 7,812 Depreciation & amortization 16,092 15,360 14,599 Other operating activities items (5,929) 8,444 (5,717) Net cash generated from operating activities 19,973 35,245 16,694 Cash Flows from Investing Activities:      Net payments for property, plant and equipment (36,349) (31,546) (12,513) Other investment activities items (1,212) (11) (2,995) Net cash used in investing activities (37,561) (31,557) (15,508) Cash Flows from Financing Activities: Net proceeds from (repayment of) borrowings and bonds 16,149 (1,952) (139) Other financing activities items 262 (121) (33) Net cash generated from (used in) financing activities 16,411 (2,073) (172) Foreign currency exchange effect 1,784 3,167 6,807 Net increase in cash and cash equivalents 607 4,782 7,821 Cash and cash equivalents at the beginning of period 76,493 71,711 67,284 Cash and cash equivalents at the end of period 77,100 76,493 75,105 [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. [2] EBITDA stands for net income or loss before interest, taxes, depreciation, amortization, impairment and investment gain or loss as well as other items. [3] Short-term borrowings include short-term loans and bills payable. Investor Relations Contact[email protected]Tel: +886.2.6636.5678https://www.aseglobal.com SOURCE ASE Technology Holding Co., Ltd. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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