Fenbo (FEBO) Registration Filing summary

Company overview and business model

• Operates as a holding company with subsidiaries in Hong Kong and China, specializing in OEM/ODM manufacturing of personal care electric appliances, mainly hair styling products, and toys for overseas markets.

• Sole customer is Spectrum Brands, for whom it manufactures Remington-branded products sold in Europe, the US, and Latin America.

• Production capacity exceeds three million units per year, with manufacturing based in Shenzhen, China.

• Business model focuses on OEM/ODM, with plans to develop own branded products and expand into new markets.

Financial performance and metrics

• 2023 revenue was HK$119.1 million (US$15.2 million), nearly flat year-over-year.

• Net loss for 2023 was HK$1.5 million (US$0.2 million), compared to net income of HK$8.7 million in 2022, mainly due to a one-off gain in 2022.

• Gross profit margin improved to 18.6% in 2023 from 15.7% in 2022.

• Cash balance at year-end 2023 was HK$46.3 million (US$5.9 million); working capital was HK$54.9 million (US$7.0 million).

• All revenue in recent years derived from a single customer.

Use of proceeds and capital allocation

• Net proceeds from the offering (estimated at $4.29 million if fully sold) will be allocated: 20% to R&D, 40% to own brand development, 30% to sales team formation, and 10% to working capital.

• Management has broad discretion over use of proceeds.