Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 72

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 4
Chunk 72
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 and video conferences.

In order to keep abreast of the
market trends of electrical appliances in terms of styles, features, functionalities, colors, textures, materials and pricing, the Group’s
sales and marketing department collects market data through participating in local and overseas trade exhibitions and fairs and market
data and surveys provided and/or conducted by customers. In particular, Mr. Gary Chiu, the Group’s marketing consultant who has
vast experience in marketing, strives to maintain a stable business relationship with the Group’s largest customer, Spectrum Brands,
a leading global branded consumer product for more than 15 years.

Pricing

The Group negotiates with its
customer to determine the price each year. The prices of the Group’s products are primarily determined with reference to (i) a cost-plus
basis approach; and (ii) the elasticity of the demand for a given product (which in turn is affected by (a) the product features and functionality,
(b) the product life cycle, and (c) consumer preferences). Our sales and marketing department is responsible for providing the quotation
after considering the requirements from our customer. The actual selling prices of our products are determined by our senior management
by taking into account the estimated costs of each order. In arriving at the final price, the Group also takes into account other ancillary
factors such as the actual size and time frame of the order, the industry standing of the customer and the relationship with the customer.
Our pricing policy is reviewed quarterly by our senior management.

  44  

Seasonality

With the exception of lower sales
in February of each calendar year, which correlates with the closure of factories in the PRC during the Chinese New Year holidays, our
Operating Subsidiaries’ sales are not subject to any material seasonal fluctuations and remain steady throughout the year.

Customer

Our sole customer is Spectrum
Brands Holdings, Inc. (“ Spectrum Brands”) for whom we manufacture hair care electric appliance styling products under the
Remington brand, which is owned by Spectrum Brands. The Company has provided OEM services to Spectrum Brands since 2006. It does not have
a formal written contract with Spectrum Brands and relies on its long-term relationship to continue to provide such services in the future.
For each individual transaction, the Group generally negotiates and confirms the terms of sale based on the quantity and quality of the
products being ordered and enters into a purchase order with the customer. Although the Group has not entered into any long-term sales
contract with Spectrum Brands, our directors