Fenbo Holdings Ltd (NASDAQ: FEBO)

Fenbo Holdings Limited is a holding company that oversees the operations of Able Industries Limited, Fenbo Industries Limited and Fenbo Plastic Products Factory (Shenzhen) Ltd.

Through these subsidiaries the company has more than 30 years of experience manufacturing personal care electric appliances mainly hair styling products such as straighteners curlers and trimmers as well as toy products for overseas markets.

The business began in 1993 when Fenbo Industries Limited was founded in Hong Kong as a toy manufacturer and distributor.

As the toy market weakened the founder established Able Industries Limited in 2005 to shift production toward personal care electric appliances.

The manufacturing subsidiary Fenbo Plastic Products Factory (Shenzhen) Ltd was formed in the People's Republic of China in 2010 and has a capacity of over three million units per year.

Currently the company operates as an original equipment manufacturer of selected personal care electric appliances.

Fenbo Holdings Limited generates revenue by producing hair styling appliances under contract for its sole customer Spectrum Brands Holdings Inc which sells the goods under the Remington brand.

The product line includes curling wands flat irons hair straighteners hair dryers and trimmers.

Revenue is derived from the sale of finished goods to Spectrum Brands based on purchase orders negotiated for each transaction.

The company does not have a long term supply contract and relies on its established relationship to continue receiving orders.

In addition to hair styling tools the firm historically offered toy products but current operations focus on the OEM hair styling business.

The hair styling tool OEM market in the People's Republic of China is highly fragmented with approximately one thousand participants.

Fenbo Holdings Limited competes directly with companies such as Zhejiang Jindelie Electrical Appliance Co Ltd and Hang Shun Hing Co Ltd.

Its competitive advantages stem from a long standing relationship with Spectrum Brands that has lasted more than fifteen years.

The firm offers a diversified range of products with various features and maintains strict quality control throughout production.

Over a decade of operating history and an experienced management team further support its market position.

The company also benefits from the ability to scale production and from its engineering and design capabilities that enable new product development.

Fenbo Holdings Limited serves a single customer Spectrum Brands Holdings Inc which distributes the products under the Remington brand in Europe the United States and Latin America.

The relationship is based on purchase orders rather than a formal written contract and has been stable since 2006.

No other major customers are disclosed in the filing.