ASE Technology Holding(US:ASX)2023-04-09 16:00Financial Performance - The company recorded net foreign exchange gains of NT$1,005.4 million in 2020, NT$1,395.1 million in 2021, and net foreign exchange losses of NT$2,459.5 million (US$80.0 million) in 2022[85]. - The company recognized impairment charges of NT$61.2 million (US$2.0 million) in 2022 for investments under the equity method, compared to nil in 2020 and 2021[88]. - Impairment charges related to assets were NT$992.3 million, NT$126.8 million, and NT$388.8 million (US$12.7 million) in 2020, 2021, and 2022, respectively[90]. - As of December 31, 2022, the company was not in breach of any financial covenants under existing loan agreements[98]. - The company intends to continue paying dividends, but future dividends may be affected by various factors including financial condition and cash requirements[139]. Operational Risks - Cyberattacks pose a risk to the company's business operations, potentially disrupting operations and harming its financial condition[111]. - Negative publicity related to environmental regulations could adversely affect the company's brand and reputation, impacting business prospects[112]. - The company is subject to risks related to public health epidemics, natural disasters, and other disruptive events that could materially affect its business and financial condition[114]. - The company may face difficulties in achieving strategic and operational synergies between ASE Group and SPIL Group due to their separation under a holding company structure[129]. - The company is vulnerable to natural disasters, including earthquakes and typhoons, which could severely disrupt normal operations and adversely affect results[120]. - Future droughts could significantly impact the company's operations, as the manufacturing process heavily relies on freshwater[123]. Regulatory and Compliance Issues - The company may face tax uncertainties that could adversely affect its operations due to changes in tax laws and regulations[99]. - The company is subject to various laws and regulations regarding environmental compliance, which may require additional funds and could adversely affect financial results[105]. Shareholder and Market Dynamics - Members of the Chang family own a significant interest in the company's Common Shares, which may lead to actions that conflict with public shareholders' best interests[140]. - The ability to deposit Common Shares into the ADS facility is restricted by R.O.C. law, which may affect liquidity and pricing of ADSs[146]. - Holders of ADSs will not have the same voting rights as shareholders, which may impact the value of their ADSs[151]. - The right of holders of ADSs to participate in rights offerings is limited, potentially causing dilution of their holdings[152]. - Future sales of Common Shares or ADSs by the company or shareholders could reduce the market price of these securities[158]. - Short selling practices may drive down the trading price of the ADSs, impacting market perception[161]. - Negative publicity from short selling could lead to significant resource expenditure for the company to investigate or defend against allegations[164]. Market Performance - Approximately 56.3%, 57.0%, and 58.5% of the company's operating revenues in 2020, 2021, and 2022, respectively, were derived from operations in Taiwan[117]. - The TWSE Weighted Index peaked at 18,526.35 on January 4, 2022, and reached a low of 12,666.12 on October 25, 2022, with the trading price of the company's Common Shares ranging from NT$71.4 to NT$112.0 per Share during 2022[136]. - On March 24, 2023, the TWSE Weighted Index closed at 15,914.7, and the closing value of the company's Common Shares was NT$111.0 per Share[136]. Share Options - As of December 31, 2022, approximately 91,262 thousand share options and restricted stocks were outstanding[145].