TAIPEI, July 25, 2024 /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$140,238 million for 2Q24, up by 2.9% year-over-year and up by 5.6% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$7,783 million, up from NT$7,740 million in 2Q23 and up from NT$5,682 million in 1Q24. Basic earnings per share for the quarter were NT$1.80 (or US$0.112 per ADS), compared to NT$1.80 for 2Q23 and NT$1.32 for 1Q24. Diluted earnings per share for the quarter were NT$1.75 (or US$0.109 per ADS), compared to NT$1.76 for 2Q23 and NT$1.28 for 1Q24. RESULTS OF OPERATIONS 2Q24 Results Highlights – Consolidated Net revenues from packaging operations, testing operations, EMS operations, and others represented approximately 45%, 9%, 45%, and 1% of the total net revenues for the quarter, respectively. Cost of revenues was NT$117,172 million for the quarter, up from NT$111,935 million in 1Q24. Raw material cost totaled NT$70,387million for the quarter, representing 50% of the total net revenues. Labor cost totaled NT$15,673 million for the quarter, representing 11% of the total net revenues. Depreciation, amortization and rental expenses totaled NT$13,406 million for the quarter. Gross margin increased by 0.7 percentage points to 16.4% in 2Q24 from 15.7% in 1Q24. Operating margin was 6.4% in 2Q24, compared to 5.7% in 1Q24. In terms of non-operating items: Net interest expense was NT$1,158 million. Net foreign exchange loss was NT$1,420 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$2,664 million. Net gain on equity-method investments was NT$459 million. Other net non-operating income was NT$551 million, primarily attributable to miscellaneous income.Total non-operating income and expenses for the quarter was NT$1,096 million. Income before tax was NT$10,117 million in 2Q24, compared to NT$7,860 million in 1Q24. We recorded income tax expenses of NT$1,952 million for the quarter, compared to NT$1,904 million in 1Q24. Net income attributable to shareholders of the parent was NT$7,783 million in 2Q24, compared to NT$7,740 million in 2Q23 and NT$5,682 million in 1Q24. Our total number of shares outstanding at the end of the quarter was 4,390,178,137, including treasury stock owned by our subsidiaries in 2Q24. Our 2Q24 basic earnings per share of NT$1.80 (or US$0.112 per ADS) were based on 4,317,151,632 weighted average numbers of shares outstanding in 2Q24. Our 2Q24 diluted earnings per share of NT$1.75 (or US$0.109 per ADS) were based on 4,383,324,817 weighted average number of shares outstanding in 2Q24. 2Q24 Results Highlights – ATM Net revenues were NT$77,813 million for the quarter, up by 2.2% year-over-year and up by 5.3% sequentially. Cost of revenues was NT$60,612 million for the quarter, up by 1.1% year-over-year and up by 3.9% sequentially. Raw material cost totaled NT$21,236 million for the quarter, representing 27% of the total net revenues. Labor cost totaled NT$12,437 million for the quarter, representing 16% of the total net revenues. Depreciation, amortization and rental expenses totaled NT$11,934 million for the quarter. Gross margin increased by 1.1 percentage points to 22.1% in 2Q24 from 21.0% in 1Q24. Operating margin was 9.3% in 2Q24, compared to 8.2% in 1Q24. 2Q24 Results Highlights – EMS Net revenues were NT$62,907 million, up by 4.1% year-over-year and up by 6.0% sequentially. Cost of revenues for the quarter was NT$56,870 million, up by 3.8% year-over-year and up by 5.6% sequentially. Raw material cost totaled NT$49,075 million for the quarter, representing 78% of the total net revenues. Labor cost totaled NT$3,121 million for the quarter, representing 5% of the total net revenues. Depreciation, amortization and rental expenses totaled NT$1,204 million for the quarter. Gross margin increased by 0.3 percentage points to 9.6% in 2Q24 from 9.3% in 1Q24. Operating margin was 3.1% in 2Q24, compared to 2.8% in 1Q24. LIQUIdiTY AND CAPITAL RESOURCES Capital expenditures in 2Q24 totaled US$406 million, of which US$215 million was used in packaging operations, US$154 million in testing operations, US$31 million in EMS operations and US$6 million in interconnect materials operations and others. Total unused credit lines amounted to NT$416,979 million as of June 30, 2024. Current ratio was 1.17 and net debt to equity ratio was 0.34 as of June 30, 2024. Total number of employees was 92,243 as of June 30, 2024, compared to 91,568 as of March 31, 2024. Business Review CustomersATM Basis Our five largest customers together accounted for approximately 45% of our total net revenues in 2Q24, compared to 46% in 1Q24. Two customers each accounted for more than 10% of our total net revenues in 2Q24 individually. Our top 10 customers contributed 60% of our total net revenues in 2Q24, compared to 61% in 1Q24. Our customers that are integrated device manufacturers or IDMs accounted for 30% of our total net revenues in both 2Q24 and 1Q24. EMS Basis Our five largest customers together accounted for approximately 67% of our total net revenues in both 2Q24 and 1Q24. One customer accounted for more than 10% of our total net revenues in 2Q24. Our top 10 customers contributed 74% of our total net revenues in 2Q24, compared to 75% in 1Q24. 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 NoticeThis 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 2023 Annual Report on Form 20-F filed on April 3, 2024. Supplemental Financial Information(Unaudited) Consolidated Operations 2Q24 1Q24 2Q23 EBITDA[2] (NT$ million) 26,127 23,974 25,770 ATM Operations 2Q24 1Q24 2Q23 Net Revenues (NT$ million) 77,813 73,908 76,108 Revenues by Application Communication 49 % 52 % 48 % Computing 19 % 18 % 19 % Automotive, Consumer & Others 32 % 30 % 33 % Revenues by Type Bumping, Flip Chip, WLP & SiP 44 % 43 % 41 % Wirebonding 31 % 30 % 34 % Others 7 % 9 % 7 % Testing 16 % 16 % 16 % Material 2 % 2 % 2 % Capacity & EBITDA[2] CapEx (US$ million)[3] 374 206 176 EBITDA (NT$ million)[2] 22,205 20,422 21,643 Number of Wirebonders 25,154 25,406 25,880 Number of Testers 5,676 5,611 5,495 EMS Operations 2Q24 1Q24 2Q23 Net Revenues (NT$ million) 62,907 59,365 60,424 Revenues by Application Communication 33 % 34 % 34 % Computing 11 % 12 % 8 % Consumer 29 % 27 % 33 % Industrial 13 % 12 % 15 % Automotive 11 % 12 % 8 % Others 3 % 3 % 2 % Capacity  CapEx (US$ million)[3] 31 21 33   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 six months ended Jun. 30 2024 Mar. 31 2024 Jun. 30 2023 Jun. 30 2024 Jun. 30 2023 Net revenues Packaging 62,834 59,458 61,846 122,292 121,875 Testing 12,623 12,102 12,292 24,725 23,699 EMS 62,853 59,326 60,384 122,179 118,115 Others 1,928 1,917 1,753 3,845 3,477 Total net revenues 140,238 132,803 136,275 273,041 267,166 Cost of revenues (117,172) (111,935) (114,534) (229,107) (226,086) Gross profit 23,066 20,868 21,741 43,934 41,080 Operating expenses Research and development (7,106) (6,609) (6,218) (13,715)