Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 99

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 5
Chunk 99
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 pressure from its customers for a price reduction in its products. The Group will closely communicate with customers to address
and accommodate their situation and provide different solutions with a view to overcoming the challenges faced by the Group.

As a result of the above, the
Group’s gross profit margin for the fiscal year ended December 31, 2024 remained relatively stable at 18.7% as compared to a gross
profit margin of 18.6% for the fiscal year ended December 31, 2023. The Group’s gross profit margin for the fiscal year ended December
31, 2023 rose to 18.6% as compared to a gross profit margin of 15.7% for the fiscal year ended December 31, 2022.

Our Group continues to closely
monitor the global geopolitical situation and other factors affecting our performance, and will assess their respective potential impacts
on our supply chain. We believe that we can enhance our gross margin during 2025 as we optimize our product mix and quality of products,
or, within our capital constraints, increase our raw material inventories.

Selling and marketing expenses

Major components of selling and
marketing expenses are packaging expenses, transportation costs and customs declarations. For the year ended December 31, 2024, selling
and marketing expenses was HK$2.2 million (US$0.3 million), which increased by HK$0.2 million from HK$2.0 million in the same period in
2023. For the year ended December 31, 2023, selling and marketing expenses was HK$2.0 million, which decreased by HK$0.1 million from
HK$2.1 million in the same period in 2022. The increase during the fiscal year ended December 31, 2024 from the same period in 2023 was
due mainly to an increase in our overall level of shipping of products. The decrease during the fiscal year ended December 31, 2023 from
the same period in 2022 was due mainly to a decrease in our overall level of shipping of products.

General and administrative expenses

General and administrative expenses
consist primarily of staff costs for our accounting and administrative support personnel and executives, depreciation, office and insurance
expenses, motor vehicles and travelling expenses, stamp duty and other taxes, utility expenses, office rental and management fee, legal
and professional fee and auditor’s remuneration.

  61  

The Company’s major general
and administrative expenses were