Hong Kong, April 29, 2024 — Fenbo Holdings Limited (the “Company” or “Fenbo”), an established original equipment manufacturer (OEM) for a global home essential company, producing electrical hair styling products under the “Remington” brand which are currently sold to overseas markets, today announced its financial results for the full year ended December 31, 2023. Full Year 2023 Financial Highlights Revenue remained relatively stable at HK$119.1 million (US$15.2 million) for the fiscal year ended December 31, 2023, slightly decreasing by HK$0.6 million, or 0.5% from HK$119.7 million for the same period in 2022. Gross profit was HK$22.1 million (US$2.8 million) for the fiscal year ended December 31, 2023, an increase of HK$3.3 million or 17.6% from HK$18.8 million for the same period in 2022, which, combined with an increase of general and administrative expenses, resulted in losses from operations of HK$0.4 million, a decrease in losses from operations of HK$2.1 million from the prior year. Gross profit margin for fiscal year ended December 31, 2023 rose to 18.6% as compared to gross profit margin of 15.7% for the fiscal year ended December 31, 2022. Net cash provided by operating activities was HK$9.7 million for fiscal year ended December 31, 2023, compared to HK$5.7 million during the same period in 2022. Mr. Allan Li, Chairman and CEO of the Company commented: “We delivered another year of stable operation and financial performance for 2023, posting revenue of HK$119.1 million (US$15.2 million) for 2023, compared to HK$119.7 million for 2022. This increase in gross profit of HK$3.3 million combined with an increase in general and administrative costs, resulted in losses from operations decreasing by HK$2.1 million from the prior year to HK$0.4 million. Our gross margin also improved by nearly 3 percentage points for 2023 fiscal year.” “We closely monitor market dynamics, supply trends, and cost movements, enabling us to make informed decisions and optimize our purchasing strategies. We have successfully managed cost fluctuations in the past and expect to continue doing so in the future. Recognizing the importance of continuous improvement, we are committed to enhancing our product mix and quality to strengthen our competitive advantage and achieve higher margins. We’ll also enhance collaboration with our valuable client to expand in new and existing geographical markets in 2024.” “Looking ahead, we are confident in our ability to navigate market developments and proactively adjust our strategies to mitigate any adverse effects on our business, results of operations, and financial condition. We believe that our resilient approach will allow us to sustain our growth trajectory despite external challenges.” “We are optimistic about the opportunities that lie ahead. As our loss from operations continue to narrow, the Company is confident in our ability to improve profitability during 2024 through a combination of product optimization, quality enhancements, and strategic inventory management. We’ll also continue our efforts in the research and development of environment friendly products and packaging, and these positive steps should improve our financial performance and position us for growth in the long term.” Full Year 2023 Selected Financial Results Revenues Revenue decreased by HK$0.6 million, or 0.5%, to HK$119.1 million (US$15.2 million) for the fiscal year ended December 31, 2023 compared to HK$119.7 million for the same period in 2022 primarily because of the decrease in revenue for our curling wands and irons products. The following table presented the Company’s revenues by product types for the fiscal years ended December 2023 and 2022: For the years ended December 31, 2023 2022 Revenues HK$ Million HK$ MillionVariance %Products Curling Wands and Irons HK$32.8 HK$38.3 (14.5)%Flat Irons and Hair Straighteners 82.8 78.6 5.3%Others 3.5 2.8