Neo-Neon Holdings Limited 真明麗控股有限公司

The progress of the Company’s LED chip/wafer and packaging factories has been expanded
smoothly. In 2008, the company introduced five (5) sets of blue and green lights extension
MOCVD and related production equipment. With a team of internationally renowned experts and
elites of the industry, the Company’s use of chips and SMD packaging techniques have continued
to improve.
In 2009, the LED high-power/low-power lighting chips and SMD packaging were verified and
approved by well-known Taiwan manufacturers of packaging and backlight module makers. The
Company’s LED chips, including 11 mil x 23 mil chips, and packaging technology have risen
to meet international standards. The brightness of the Company’s mass produced LED chips has
risen to an average of 2,100 mcd, which is comparable to the brightness level of 2,000 mcd to
2,200 mcd of the leading Taiwan backlight factories and higher than the 1,600 mcd to 1,900 mcd
of mainland China manufacturers. Because the brightness is already sufficient, the Company plans
to manufacture LED backlight chips in 2010, in particular, high-end large LED displays and wide
color gamut LCD backlight, etc. LED lighting and LED television will be the company’s strong
drive for future growth.
This year, the demand for LED chips has increased rapidly. Currently, prices for LED chips have
increased for more than 40% from approximately RMB950 to RMB1,200 per two (2) inches or
from RMB20 to RMB30 per thousand chips of decorative LED lights, while the Company’s exfactory
cost is RMB550 per two (2) inches and RMB14 per thousand chips. Accordingly, the gross
profit rate exceeds 50% and the net profit margin exceeds 40%.
AGREEMENT
Date
12 June 2010
Parties
Party A:
Party B:
The Management Committee of Jiangmen Industrial Park
Billion Choice Trading Limited
CONSIDERATION
The Board announces that on 12 June 2010, Billion Choice Trading Limited, a wholly owned
subsidiary of the Company, is entering into an Agreement with the Management Committee of
Jiangmen Industrial Park to invest and establish a wholly owned subsidiary company to produces
LED wafers and chips. The consideration for the investment will be RMB400,000,000 (equivalent
to approximately HK$453,800,000), which is determined after arm’s length negotiations between
the parties with reference to the market prices of establishing a manufacturing plant of similar
size and cost of purchasing MOCVD in the open market as determined by the Directors. The
Directors, including the non-executive Directors are of the view that the terms of the Agreement
are concluded after arm’s length negotiations under normal commercial terms and are fair and
reasonable and in the interest of the Company and the Shareholders as a whole.
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