According to Neo-Neon Holdings Co., Ltd, three pieces of good news have inspired the company.Firstly, the company will develop a unique module-manufacturing method that can decrease product costs. Secondly, the company plans to buy back 94.24 million treasury stocks. Thirdly, its subsidiary, Neo-Neon LED Lighting International Ltd., has been listed among the LED-lighting suppliers entitled to receive the Chinese government’s subsidies.
 
A unique module-manufacturing method
The new method includes chip-on-board packaging, integration of light device on PCBs, and standardization of thermal design and connector ports. Intellectual property and patents for the method are pending.
 
According to the company, this unique module method will provide a huge room for its sales and profit growth over next few years by bring down costs. Company executives pointed out that high costs have hindered outspread of LED lamps into households.
 
To buy back 94.24 million treasury stocks
In addition, the company also pointed out that its board of directors has approved the proposal of repurchasing 94.24 million corporate treasury stocks, which account for around 10% of its outstanding stocks on the market.
 
Receives Chinese government’s subsidies
What’s more, Neo-Neon LED Lighting is on the list of 10 LED-lighting manufacturers qualified for subsidy announced by the mainland Chinese government.
 
Its finance to benefit from new method and subsidy
Thanks to inspiring corporate news, Neo-Neon Holdings Co., Ltd.’s share price closed up 83.51% at HK$1.78 last Wednesday on Hong Kong Stock Exchange.
 
Neo-Neon Holdings registered net loss of HK$1.4 billion (US$185 million at US$1: HK$7.7) last year, with sales cost soaring 44% year on year to HK$1.6 billion (US$216 million). Its 2011 revenue was HK$1.08 billion (US$140 million), contracting 36.6% from a year earlier.
 
Industry executives felt that new method and subsidy would improve the company’s finance in 2012.