The income from operations decreased by HK$3.1 million from the income from operations of HK$0.9 million for the six months ended June 30, 2023 to the loss from operations of HK$2.2 million for the six months ended June 30, 2024. The deterioration in the financial performance from operations during the six months ended June 30, 2024 were primarily due to the combined effects of the increase of gross profit of HK$4.5 million and the increase of general and administrative expenses of HK$7.4 million during the six months ended June 30, 2024.

Other income (expenses), net

Major components of other income (expense) are exchange gain and loss, gain/loss on disposal of property, plant and equipment, sundry income, government grant and bank interest income. For the six months ended June 30, 2024, net income was HK$0.4 million (US$0.1 million), which increased by HK$0.7 million from net expenses of HK$0.3 million in the same period in 2023. The increase was due mainly to the decrease in interest expenses recognized during the six months ended June 30, 2024.

Net income (loss)

The net income decreased by HK$2.1 million from a net income of HK$0.2 million for the six months ended June 30, 2023 to a net loss of HK$1.9 million (US$0.2 million) for the six months ended June 30, 2024. The decrease in the net income during the six months ended June 30, 2024 was mainly attributable to the cumulative effect of the reasons set out above.

Earnings per Share - Basic and Diluted

Loss per basic and diluted share for the six months ended June 30, 2024 was HK$0.17, compared to earnings per basic and diluted share of HK$0.02 for the comparable period of 2023.

Liquidity and Capital Resources

The Company financed its daily operations and business development through cash generated from the operations of the Company's wholly owned subsidiaries, consisting of Able Industries Limited, Fenbo Industries Limited and Fenbo Plastic Products Factory (Shenzhen) Limited. As of June 30, 2024 and 2023, its cash balance was HK$25.9 million (US$3.3 million) and HK$21.3 million, respectively.

The following table sets forth a summary of its cash flows for the periods indicated:

 
                        For the six months ended June 30, 
                     ---------------------------------------- 
                         2023             2024        2024 
                     ------------      ----------   --------- 
                       HK$'000          HK$'000      US$'000 
                     ------------      ----------   --------- 
Net cash provided by 
 (used in) operating 
 activities                 7,232         (23,299)     (2,985) 
Net cash used in 
 investing 
 activities                   (50)            (37)         (5) 
Net cash provided by 
 financing 
 activities                   376           2,769         355 
                      -----------      ----------   --------- 
 
 

Capital Expenditures

The Company had capital expenditures of HK$37,000 and HK$50,000 for the six months ended June 30, 2024 and 2023, respectively. Our capital expenditures were mainly for office equipment. Management intends to fund future capital expenditures from working capital, bank borrowings, lease financing and other financings. The Company will continue to make capital expenditures as appropriate to support its business growth.

About Fenbo Holdings Limited

The Company's operating history began in 1993 when Fenbo Industries Limited was founded in Hong Kong by Mr. Li Kin Shing as a toy manufacturer and distributor. As the toy market deteriorated, he founded Able Industries Limited in 2005 in Hong Kong and shifted the operations to the manufacturing and sales of personal care electric appliances. The manufacturing subsidiary, Fenbo Plastic Products Factory (Shenzhen) Ltd., located in Guangdong, PRC, was formed in the PRC in 2010 and is capable of producing over three million units per year. The Company currently act as both an original equipment manufacturer and historically have also served as an original design manufacturer. For more information, please visit the Company's website at http://www.fenbo.com.

Forward-Looking Statements

This press release contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "target," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the Company's future business development; financial condition and results of operations; product and service demand and acceptance; reputation and brand; the impact of competition and pricing; changes in technology; government regulations; fluctuations in general economic and business conditions in U.S., Hong Kong and China and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:

Fenbo Holdings Limited

Li Siu Lun Allan

Chief Executive Officer and Chairman of the Board of Directors

Telephone: +(852) 2343-3328

Email: allanli@fenbo.com

 
                    FENBO HOLDINGS LIMITED 
   UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS 
     (Amount in thousands, except for share and per share 
                   data, or otherwise noted) 
 
                                        As of 
                           -------------------------------- 
                           December 31         June 30 
                           ------------   ----------------- 
                               2023        2024      2024 
                           ------------   -------   ------- 
                             HK$'000      HK$'000   US$'000 
 
Assets 
Current assets: 
Cash                             46,342    25,900     3,317 
Accounts receivable, net         31,486    45,301     5,802 
Deferred initial public 
offering cost                         -         -         - 
Inventories                      14,088    14,802     1,896 
Prepaid expenses and other 
 current assets                   6,017    10,116     1,296 
                            -----------   -------   ------- 
Total current assets             97,933    96,119    12,311 
                            -----------   -------   ------- 
 
Property, plant and 
 equipment, net                   1,244     1,013       130 
Right-of-use assets               3,801     1,101       141 
                            -----------   -------   ------- 
Total non-current assets          5,045     2,114       271 
                            -----------   -------   ------- 
TOTAL ASSETS                    102,978    98,233    12,582 
                            ===========   =======   ======= 
 
Liabilities 
Current liabilities 
Bank loan -- current             11,000    11,000     1,409 
Accounts payable                 18,482    20,963     2,685 
Other payables and accrued 
 liabilities                      7,049     2,770       355 
Lease liabilities -- 
 current                          4,060     1,043       134 
Amounts due to related 
 parties                          2,413     3,106       398 
                            -----------   -------   ------- 
Total current liabilities        43,004    38,882     4,981 
                            -----------   -------   ------- 
 
Non-current liabilities 
Lease liabilities -- 
 non-current                        198         -         - 
                            -----------   -------   ------- 
TOTAL LIABILITIES                43,202    38,882     4,981 
                            -----------   -------   ------- 
 
Commitments and 
contingencies                         -         -         - 
                            -----------   -------   ------- 
 
Shareholders' equity 
Preference shares 
US$0.0001 par value per 
share; 3,000,000 
authorized capital; nil 
shares issued and 
outstanding                           -         -         - 
Ordinary shares US$0.0001 
 par value per share; 
 300,000,000 authorized 
 capital; 11,062,500 
 shares issued and 
 outstanding (2023: 
 11,000,000 shares issued 
 and outstanding)                     9         9         1 
Additional paid-in capital       28,494    30,570     3,915 
Statutory reserve                 2,806     2,806       359 
Retained earnings                28,721    26,820     3,435 
Accumulated other 
 comprehensive income              (254)     (854)     (109) 
                            -----------   -------   ------- 
Total shareholders' equity       59,776    59,351     7,601 
                            -----------   -------   ------- 
TOTAL LIABILITIES AND 

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