Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 61

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 4
Chunk 61
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 was to allow us to raise
funds to strengthen our market position and to further expand our market share. We are using the proceeds from the IPO for: (i)
expansion of our production capacity and capability; (ii) strengthening engineering, research and development capability; (iii)
penetrating and further expanding into new and existing geographic markets; (iv) general working capital; and (v) payment of
advisory fees.

Organization Chart

The following chart sets forth
our corporate structure as of the date of this Annual Report:

  36  

A description
of our subsidiaries is set out below.

AIL - As the marketing arm for
the Group, AIL is responsible for all sales and marketing efforts. As of December 31, 2024, AIL employed one employee.

FIL - Is responsible for the overall
management of the Operating Subsidiaries. As of December 31, 2024, FIL employed a total of seven employees.

FPPF
- Is responsible for the production of all of the Company’s products, and its engineering and design department conducts in-house
design and research functions for the development of new products and product lines. As of December 31, 2024, FPPF employed a total of
266 employees.

Industry and Market Overview

The following
overview is based on an Independent Market Research Report prepared for the Company by Frost & Sullivan in 2024.

As reported by Frost & Sullivan,
the global market size of personal care beauty appliance / hair styling tools, which is measured by retail price, increased from approximately
US$26.9 billion to US$32.4 billion from 2016 to 2021, representing a CAGR of 3.8%. The burgeoning demand for hair care appliances was
attributable to the adverse effects shown by the chemical-based hair styling process. The popularity of compact, portable and travel size
designs of hair styling tools also contributed to the market growth.

Looking forward, the increasing
awareness of adverse chemical treatment reactions, including a recent study from the National Institute of Health indicating that women
who used chemical hair straightening products were at higher risk for uterine cancer compared to women who did not report using these
products, continues to boost demand for personal care beauty appliances and the adoption of smart styling tools is on the rise. Furthermore,
increased consciousness about personal grooming and aesthetic appeal coupled with rising preference for easy-to-use and low-cost grooming
and beauty devices is also likely to