Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 73

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 4
Chunk 73
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 consider that the Group has maintained a good business relationship with Spectrum Brands
since 2006.

With respect to products distributed
to overseas customers, the Group exports its finished products on a Free Carrier (“ FCA”) basis, which means the Group is responsible
for the delivery of products to a destination specified by the customer. The customer is responsible for all costs after the goods are
delivered to the container terminal warehouse designated by the customer. Management estimates that the lead time from the placing of
a purchase order by an overseas customer to the delivery of the first batch of finished product by the Group takes approximately 55 to
65 days (subject to the size and the type of the order, the location of the customer and the availability of raw materials).

The Group generally allows a credit
period of 120 days for the trade receivables with terms that are common within the industry. Credit terms offered to the customer by the
Group vary depending on the Group’s assessment of the reputation of the customer, the length of business relationship established
with the customer and the actual size of the order placed by the customer.

Competition

The industry is highly fragmented
and competitive. In 2024, there were approximately 1,000 market participants principally engaged as hair styling tool OEM service providers
in the PRC. However, the Group considers that Zheijang Jindelie Electrical Appliance Co. Ltd. and Hang Shun Hing Co. Ltd. are two direct
competitors to the Group.

Competitive Strengths

Renowned customer base with
stable relationship. The Group has built up a solid and stable business relationship with Spectrum Brands since 2006, as its OEM
manufacturer for a variety of hair styling products under the popular worldwide personal care brand “ Remington.” The established
customer relationship provides a concrete foundation for the Group to further expand its business and to achieve economies of scale.

Designs for a diversified
product range. Endowed with over a decade of industry experience and market awareness, the engineering and design department of
the Group has been keeping itself abreast of market changes and has a track record for designing, researching and developing an innovative
and trendy array of products on a proactive basis. The Group also offers a diversified range of products with different value-added features
or functionalities to meet the demands of customers of different demographical origins or consumer preferences.

Stringent quality control. As a consumer product manufacturer, the Group has a strong commitment to quality control. From the very beginning of raw material