HSINCHU, TAIWAN — March 18, 2016 — Microelectronics Technology Inc. (MTI) held Board of Directors’ meetings today and approved the non-consolidated and consolidated financial statements for the year ended December 31, 2015, and the capital reduction to offset accumulated losses which will be proposed to 2016 shareholders’ meeting in order to improve the company's financial structure. Over the past years, MTI has continued focusing on existing core businesses. With our dedicated efforts on key technology, product value was able to boost for Satellite Communication business. In respect of Telecom business, MTI endeavored to develop competitive 4G LTE RRH products as well as 5G technology. The factors mentioned above, as well as good manufacturing management and expense control, contributed to our overall performance and progress in turnaround. Consolidated net profit after tax totaled NT$41 million for year 2015, compared to net loss of NT535 million in the prior year.
MTI’s accumulative un-distributed retained earnings were deficit NT$2,648,430,857 as of December 31, 2015. The company plans to offset accumulated losses by capital reserve from employ stock option of NT$78,661,167 and capital reserve from conversion of convertible bond of NT$487,143,150. The company will propose the capital reduction of NT$2,003,226,050 or 50% to the shareholders’ meeting. The cancelled shares are determined by the shareholding ratio of shareholders in the register of shareholders on the record date of the reduction, i.e. for every 1,000 shares, 500 shares will be cancelled. The cancelled shares will be 200,322,605. Based upon CPA audited financial statements for the year of 2015, MTI’s capital is NT$4,006,452,100; accordingly, the capital will be reduced to NT$2,003,226,050 and book value per share could be adjusted from NT$5.02 to NT$10.34 after capital reduction.
The company shall file the capital reduction plan with the Financial Supervisory Commission for approval after the resolution by the annual meeting of shareholders, and authorize the Board to set up a reduction record date and to conduct the reduction procedures. It is proposed that the Board of Directors be authorized to take any action that may be required in connection with the capital reduction plan as a result of any amendment to applicable laws or regulations or as required by the competent authorities.
Microelectronics Technology Inc. (MTI) is a technology company specialized in wireless communication product development, manufacturing and global sales for more than 29 years. Based on the core competence in microwave and RF technology, MTI has established a leading position in the fields of microwave radios, satellite ODUs and receivers, mobile base station components and broadband wireless access products. With this excellent record of accomplishment, MTI has established long-term partnerships with world’s leading communication equipment providers.
For more information, please visit http://www.mtigroup.com