ASE Technology Holding Co., Ltd. Reports Its Unaudited Consolidated Financial Results for the Fourth Quarter and the Full Year of 2023

Core Insights - ASE Technology Holding Co., Ltd. reported a decline in net revenues for 4Q23, totaling NT$160,581 million, down 9.5% year-over-year but up 4.2% sequentially [1] - The company's net income attributable to shareholders for the quarter was NT$9,392 million, a decrease from NT$15,730 million in 4Q22 but an increase from NT$8,776 million in 3Q23 [1] - Basic earnings per share for 4Q23 were NT$2.18, compared to NT$3.77 for 4Q22 and NT$2.04 for 3Q23 [1] Financial Performance - For the full year of 2023, ASE reported unaudited net revenues of NT$581,914 million, down 13% from 2022 [2] - The net income attributable to shareholders for 2023 was NT$31,725 million, significantly lower than NT$62,090 million in 2022 [2] - Basic earnings per share for the full year of 2023 were NT$7.39, down from NT$14.53 in 2022 [2][7] Operational Highlights - In 4Q23, net revenues from packaging operations, testing operations, EMS operations, and others accounted for approximately 41%, 9%, 49%, and 1% of total net revenues, respectively [3] - The gross margin for 4Q23 decreased to 16.0% from 16.2% in 3Q23, while the operating margin remained stable at 7.4% [3] - For the full year of 2023, the gross margin decreased to 15.8% from 20.1% in 2022, and the operating margin decreased to 6.9% from 12.0% [7] Segment Performance - In 4Q23, net revenues from ATM operations were NT$82,004 million, down 13.1% year-over-year and down 2.0% sequentially [4] - EMS operations generated net revenues of NT$79,182 million in 4Q23, down 6% year-over-year but up 12% sequentially [5] - For the full year of 2023, ATM operations had net revenues of NT$315,115 million, down from NT$372,176 million in 2022 [6][8] Cost Structure - The cost of revenues for 4Q23 was NT$134,820 million, up from NT$129,251 million in 3Q23 [3] - Raw material costs represented 55% of total net revenues for 4Q23, while labor costs accounted for 10% [3] - For the full year of 2023, raw material costs totaled NT$310,179 million, representing 53% of total net revenues [6] Customer Concentration - In 4Q23, the five largest customers accounted for approximately 44% of total net revenues, an increase from 42% in 3Q23 [11] - The top 10 customers contributed 58% of total net revenues in 4Q23, compared to 57% in 3Q23 [11][12]