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, for export markets.

• Over 30 years of experience, with a sole customer relationship with Spectrum Brands (Remington brand) since 2006.

• Manufacturing capacity exceeds three million units per year, with production based in Shenzhen, China.

• Corporate structure includes Fenbo Holdings Limited (Cayman Islands), Rich Legend Holdings Limited (BVI), Fenbo Industries Ltd. and Able Industries Ltd. (Hong Kong), and Fenbo Plastic Products Factory (Shenzhen) Ltd. (China).

Financial performance and metrics

• FY2023 revenue: HK$119.1 million (US$15.2 million), down 0.5% from FY2022.

• FY2023 net loss: HK$1.5 million (US$0.2 million), compared to net income of HK$8.7 million in FY2022.

• Gross profit margin improved to 18.6% in FY2023 from 15.7% in FY2022.

• Cash balance as of Dec 31, 2023: HK$46.3 million (US$5.9 million); working capital: HK$54.9 million (US$7.0 million).

• Accounts receivable as of Dec 31, 2023: HK$31.5 million (US$4.0 million), representing 30.6% of total assets.

Use of proceeds and capital allocation

• Net proceeds (if fully subscribed): approx. $4.29 million after fees and expenses.

• Planned allocation: 20% to R&D, 40% to own branded product development, 30% to sales team formation, 10% to working capital.

• Management has broad discretion over use of proceeds.