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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