Negative Net Worth Triggers Delisting Clause
MTI issued a material announcement on November 10, disclosing that its net worth has turned negative. As it no longer meets the relevant Taiwan Stock Exchange operating rules, it will be delisted effective December 21 this year. The news hit trading on the 11th, with the shares gapping lower and locking at the NT$6.66 limit-down price, closing with 10,000 3376 limit-down sell orders queued.MTI was founded in 1983 and is now in its 43rd year. It was formerly a member of the Hon Hai group, with Hon Hai investing in 2012 through Hon Yang Venture Capital and CyberTAN to develop 4G and satellite communications business, before later leaving the Hon Hai group system.
Revenue Down Nearly 80% From Peak
MTI's main business is satellite communications equipment, including satellite TV receivers and satellite earth stations, later expanding into 5G O-RAN base stations and low-earth-orbit satellites, and it was once invested in by Hon Hai. Financial commentator Ah Xun noted on Facebook that the themes are hot, but the financial statements keep getting colder.MTI's revenue was about NT$7.6 billion in 2016 and nearly NT$8 billion in 2018, but fell to NT$5.8 billion in 2019 and NT$4.48 billion in 2022, and only NT$1.67 and NT$1.68 billion in 2024 and 2025, down nearly 80% from 2018. On earnings, 2019 was roughly breakeven, followed by six consecutive years of losses from 2020 to 2025, with 2024 alone losing NT$1.15 billion.
O-RAN Delays and Satellite Business Setbacks
Regarding the deterioration, MTI admitted that U.S. 5G O-RAN subsidies and customer orders were delayed, low-earth-orbit satellite revenue was limited, and a customer's geostationary satellite launch failed, while the U.S.-China trade war also dragged down its Wuxi plant, sending operations from bad to worse. It lost another NT$463 million in the first three quarters of 2026, with shareholders' equity falling to negative NT$244 million and a debt ratio of 109%. Ah Xun noted that MTI had already been placed under full-delivery and alternate trading, and negative net worth now directly triggers delisting rules. The company is still seeking private placements and asset disposals to rescue itself, and delisting does not mean immediate bankruptcy.
Expert: Value Comes Down to Financial Health
Ah Xun stressed that while themes can lift expectations, they cannot pay a company's bills. A company's true value ultimately comes back to revenue, profit, cash flow, and financial health. He concluded that MTI once had the backing of the Hon Hai group, but now its largest shareholder holds only 3.43%, the chairman holds less than 1%, while more than 50,000 shareholders jointly bear the delisting risk.