Company: FEBO
Filing Date: 2025-12-29
Form Type: 6-K
Source: 0001493152-25-029212
Chunk: 2

Company: Fenbo Holdings Ltd
Filing Date: 2025-12-29
Form: 6-K
Chunk 2
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 customer orders.

Cost of sales

Cost of sales includes cost of raw materials (such as costs of electrical components, packaging materials, metal materials, plastic particles, and painting materials), direct labor (including wages and social security contributions), manufacturing overhead (such as consumables, depreciation, direct rental expense and utilities) and other taxes. We currently do not hedge our raw materials position, and we closely monitor raw material price trends to manage our production needs.

For the six months ended June 30, 2025, cost of sales decreased to HK$36.2 million (US$4.6 million), representing a decrease by 30.3% or HK$15.7 million from HK$51.9 million in the same period in 2024. The decrease in cost of sales was in line with the decrease in our revenue during the same period.

Gross profit

As a result of the foregoing, gross profit for the six months ended June 30, 2025 was HK$6.5 million (US$0.8 million), a decrease of HK$8.4 million or 56.4% from HK$14.9 million for the same period in 2024 primarily due to the decrease of the sale of our hair style products.

Selling and marketing expenses

Major components of selling and marketing expenses includes packaging expenses, transportation costs and custom declarations. For the six months ended June 30, 2025, selling and marketing expenses decreased by HK$0.4 million to HK$0.7 million (US$0.1 million) from HK$1.1 million in the same period in 2024. The decrease was mainly due to a decrease in overall level of shipping of products.

General and administrative expenses

General and administrative expenses primarily consist 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 and others. General and administrative expenses decreased by HK$6.7 million from HK$16.1 million for the six months ended June 30, 2024 to HK$9.4 million (US$1.2 million) for the six months ended June 30, 2025. This decrease was mainly due to the decrease in (i) staff costs and insurance expenses to provide support for the business expansion, (ii) directors’ renumeration and related