Neo-Neon Holdings Co., Ltd.'s Share Price Closed up 83.51%

Neo-Neon Holdings Co., Ltd.’s share price closed up 83.51% at HK$1.78 this Wednesday on Hong Kong Stock Exchange thanks to inspiring corporate news.

The company, which is the world’s No.1 decorating lighting company listed on the Hong Kong stock market with origin in Taiwan, announced a unique module-manufacturing method that can decrease product costs as well as its plan to buy back 94.24 million treasury stocks. Besides, the company’s subsidiary, Neo-Neon LED Lighting International Ltd., has been listed among the LED-lighting suppliers entitled to receive the Chinese government’s subsidies.

The company claimed its unique module method will provide a huge room for the company’s 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.

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.

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.

The mainland Chinese government recently announced the list of 10 LED-lighting manufacturers qualified for its subsidy. Neo-Neon LED Lighting is on the list.

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 this year.