Fenbo (FEBO) H1 2024 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2024 rose 14.2% year-over-year to HK$66.9 million, driven by increased sales of flat irons and hair straighteners.

• Gross profit increased to HK$14.9 million (22.3% margin), up from HK$10.5 million (17.9% margin) in the prior year period.

• Net loss was HK$1.9 million, compared to net income of HK$0.2 million a year earlier, mainly due to higher administrative expenses.

• The company completed its IPO and Nasdaq listing, aiming to expand operations and drive future growth.

Financial highlights

• Revenue: HK$66.9 million, up 14.2% year-over-year.

• Gross profit: HK$14.9 million (22.3% margin), up from HK$10.5 million (17.9% margin).

• Net loss: HK$1.9 million, versus net income of HK$0.2 million in the prior year.

• Basic and diluted loss per share: HK$0.17, compared to earnings per share of HK$0.02 last year.

• Cash and cash equivalents: HK$25.9 million as of June 30, 2024, down 44.1% from December 31, 2023.

Outlook and guidance

• Management expects market challenges to persist in the second half of 2024 but remains committed to cost-effective solutions and long-term growth.

• Focus on cost reduction, efficiency, and customer base diversification to navigate uncertainty.