ASE Technology Holding(ASX)2025-03-27 10:11Financial Performance and Risks - The company recorded net foreign exchange losses of NT998.1 million in 2023, and net foreign exchange losses of NT168.9 million) in 2024[96]. - The company recognized impairment charges of NT146.6 million, and NT5.4 million) in 2022, 2023, and 2024, respectively, primarily related to property, plant and equipment, and other intangible assets[101]. - The company faces potential tax uncertainties that may arise from operations or changes in tax laws, which could adversely affect financial condition and results of operations[107]. - Future dividends may be affected by the company's financial condition, cash balances, and other factors, with no assurance of continued declaration of dividends[147]. - The company is subject to various laws and regulations regarding environmental compliance, which may require additional funds and could adversely affect financial condition[115]. - The company may incur significant expenses to comply with environmental regulations aimed at reducing carbon emissions, which could negatively impact financial performance[119]. Environmental and Operational Strategies - The company has established a wastewater reclamation recycling system and implemented water use strategies to address risks related to water shortages[120]. - The company plans to purchase solar photovoltaic and onshore wind power and negotiate for offshore wind power to transition towards net-zero emissions[121]. - The company conducts evaluations for potential overseas plant expansions in Southeast Asia, Northeast Asia, Europe, and the Americas to mitigate regional political risks[131]. Market and Shareholder Considerations - Approximately 58.5%, 55.4%, and 55.1% of the company's operating revenues in 2022, 2023, and 2024, respectively, were derived from operations in Taiwan[128]. - The market for the company's Common Shares and ADSs may not be liquid, affecting price volatility and execution of buy and sell orders[138]. - Holders of Common Shares and ADSs may experience dilution due to stock bonuses, share options, or additional equity issuance[152]. - Future sales of Common Shares or ADSs by the company or shareholders could negatively affect market prices[163]. - Short selling practices may drive down the trading price of the ADSs, impacting market perception[165]. - Negative publicity from short selling could lead to significant resource expenditure for the company to defend against allegations[167]. Operational Risks - The company is subject to risks from public health epidemics, natural disasters, and other disruptive events that could materially affect its business and financial condition[126]. - The company has experienced interruptions to its production schedule primarily due to power outages caused by earthquakes, which could significantly disrupt operations[132]. - The company is vulnerable to natural disasters, including earthquakes and typhoons, which could severely disrupt normal operations and adversely affect results[132]. - The company faces risks related to cyberattacks that could disrupt business operations and adversely affect financial condition[123]. Shareholder Rights and Restrictions - As of December 31, 2024, approximately 227,621 thousand share options and restricted stocks were outstanding[153]. - The ability to deposit Common Shares into the ADS facility is restricted by R.O.C. law, potentially affecting liquidity and market price[153]. - Holders of ADSs will not have the same voting rights as Common Shareholders, which may impact the value of their ADSs[157]. - The right of holders of ADSs to participate in rights offerings is limited, which could lead to dilution of their holdings[158]. Financial Market Trends - The TWSE Weighted Index peaked at 24,390.03 on July 11, 2024, and reached a low of 17,161.79 on January 17, 2024, with the trading price of the company's Common Shares ranging from NT193.5 per Share[145].