Fenbo Holdings Limited Announces Fiscal Year 2024 First Half Financial Results

Core Insights - Fenbo Holdings Limited reported a revenue increase of 14.2% to HK$66.9 million for the first half of fiscal year 2024 compared to HK$58.6 million in the same period of 2023, driven primarily by higher sales of flat irons and hair straighteners [5][6] - The company experienced a net loss of HK$1.9 million in the first half of 2024, a decline from a net income of HK$0.2 million in the same period of 2023, attributed to rising administrative expenses [13][14] - The company’s cash and cash equivalents decreased by 44.1% to HK$25.9 million as of June 30, 2024, from HK$46.3 million at the end of 2023 [1][15] Financial Performance - Revenues for the six months ended June 30, 2024, were HK$66.9 million, up from HK$58.6 million in 2023, marking a 14.2% increase [1][5] - Gross profit rose to HK$14.9 million, representing 22.3% of revenues, compared to HK$10.5 million or 17.9% of revenues in the prior year [1][9] - Operating expenses increased significantly, with general and administrative expenses rising to HK$16.1 million from HK$8.7 million in the previous year, primarily due to higher staff costs and legal fees related to the company's IPO [10][11] Operational Insights - The company faced challenges from geopolitical conflicts and inflation, which affected consumer demand and overall market conditions [6] - Despite the challenges, the company is focused on improving product competitiveness and enhancing research and development capabilities to strengthen market share [6][12] - The company’s initial public offering and listing on Nasdaq is seen as a significant milestone that will aid in geographic expansion and future growth [2] Cash Flow and Liquidity - The net cash used in operating activities for the first half of 2024 was HK$23.3 million, a significant decrease from HK$7.2 million provided in the same period of 2023 [16][29] - Cash balance as of June 30, 2024, was HK$25.9 million, down from HK$46.3 million at the end of 2023, indicating liquidity challenges [1][15] Market Context - The company noted that the negative impacts of the COVID-19 pandemic have subsided, but ongoing geopolitical tensions and inflation continue to pose risks to economic recovery [6] - The overall consumer goods and manufacturing sectors are experiencing slow recovery in demand, which is affecting the company's performance [6]