Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 69

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 4
Chunk 69
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 In view of the evolving market landscape, regular upgrade and innovation of products is another competition focus.
Fast-changing technical requirements further heighten the needs for R& D capabilities. Therefore, a lack of strong R& D capabilities
will prevent new market entrants from entering this industry.

Reputation
and Relationship with Different Stake holdersIn general, current market participants have already established an extensive
business network with their upstream equipment suppliers, distributors, as well as downstream customers. New market entrants without prior
supply and sales network may find it difficult to build a credible relationship with other stakeholders along the value chain, thus, a
stable business relationship between stakeholders act as one of the major challenges that new market entrants may face in the PRC hair
styling tool market.

Capital
Requirements. Market participants are required to possess sufficient amount of capital and human resources to sustain their
businesses, particularly product research and development (R& D) process, product pilot tests and daily operation costs. Existing market
participants may have already built up a profound and reliable customer base and supply network, so as to ensure a stable and smooth business
operation and income flow as a comparative advantage over new market entrants. Therefore, new market entrants who would like to enter
the PRC hair styling tool market may have to overcome such high initial capital investment.

Factors of Competition

Experience
and Knowledge. On time deliveries and lead time, response to shifts in demand and strong customized production platform
are highly valued by customers in hair styling tools OEM market. In addition, market participants who have in-depth understanding of customer’s
requirements are more capable of developing and offering better solution to address customers’ needs and gain a competitive advantage.

Technological
Capabilities. Technological capabilities, including casting and molding, machining, joining, and shearing and forming,
form key factors of competition in the hair styling tool OEM market. Market participants with strong technological capabilities are able
to engage in whole lifecycle of hair styling tool, from product development and prototype production to production, which comes as the
indistinguishable asset among the hair styling tool OEM services providers.

Track
Record and Project Experience. Market participants with proven track record and satisfactory project reference are usually
more preferred by customers, and thus receive higher recognition and earn reputation in the market. Such market participants are more
likely to be invited to tender and secure potential projects.

Research and Development

The engineering and design department
of the Group conducts in-house design and research for the purposes of developing new product lines for the Group