Huibao Holdings announced its 2023 full-year financial results

HONG KONG, April 30, 2024 /PRNewswire/ -- Huibao Holdings Limited (the "Company" or "Huibao Holdings") is a world-renowned home furnishings company that manufactures electric hair products under the "Remingden" brand and sells them to overseas markets. Today, the company announced its financial results for the full year ended December 31, 2023.

2023 Full Year Financial Highlights:

• For the financial year ended December 31, 2023, the Company's sales revenue remained relatively stable at HK$119.1 million (US$15.2 million), a slight decrease of HK$0.6 million, or 0.5%, from HK$119.7 million in the same period in 2022.
• For the financial year ended December 31, 2023, the Company's gross profit was HK$22.1 million (US$2.8 million), an increase of HK$3.3 million or 17.6% from HK$18.8 million in the same period in 2022, and the combined increase in general and administrative expenses narrowed the operating loss for the year to HK$0.4 million, a decrease of HK$2.1 million from the operating loss of the previous year.
• Gross margin increased to 18.6% for the fiscal year ended December 31, 2023, compared to 15.7% for the fiscal year ended December 31, 2022.
• Net cash provided by operating activities was HK$9.7 million for the financial year ended December 31, 2023, compared to HK$5.7 million for the same period in 2022.

Mr. Allan Li, Chairman and Chief Executive Officer of the Company, commented, "2023 was another year of solid operational and financial performance for the Company, with revenue of HK$119.1 million (US$15.2 million) in 2023, compared to HK$119.7 million in 2022. Gross profit increased by HK$3.3 million, and together with the increase in general and administrative expenses, the operating loss narrowed to HK$0.4 million from the previous year by HK$2.1 million. In fiscal 2023, our gross margin also improved by nearly 3 percentage points. "

"We keep a close eye on market dynamics, supply trends and cost changes, allowing us to make informed decisions and optimize our sourcing strategy. We have successfully managed cost fluctuations in the past and hope to continue to do so in the future. Recognizing the importance of continuous improvement, we are committed to strengthening our product portfolio and quality to increase our competitive advantage and achieve higher profits. We will also strengthen our cooperation with our valuable customers to explore new and existing regional markets in 2024. "

"Looking ahead, we believe we are well positioned to navigate market development and proactively adjust our strategy to mitigate the impact of any headwinds on our business, results of operations and financial condition. We believe that our resilience strategy will enable us to maintain a sustained growth trajectory despite external challenges. "

"We are optimistic about the opportunities ahead. As our operating loss continues to narrow, the company is confident that it will improve profitability in 2024 through a combination of product optimization, quality improvement and strategic inventory management. We will also continue to work hard to research and develop environmentally friendly products and packaging, and these positive steps will improve our financial performance and lay the foundation for our long-term growth. "

part 2023 Full year financial results

revenue

up to 2023 year 12 moon 31 The company's revenue was comparatively higher in the fiscal year 2022 Year-synchronous 1.197 Decrease in HK$100 million 60 10,000 Hong Kong dollars to 1.191 billion Hong Kong dollars ( conjunction 1520 $10,000 ) , the decrease is 0.5% , mainly due to a decrease in revenue from curling iron products.

The table below shows the Company's revenue by product type for the fiscal years ended December 2023 and December 2022:

up to 12 moon 31 day of the year,
2023	2022 year
revenue	HK$ million	HK$ million	fluctuation %
products
Curling irons	32.8	38.3	(14.5)	%
Hair straightener	82.8	78.6	5.3	％
other	3.5	2.8	27.6	％
gross income	119.1	119.7	(0.5)	%

The table below shows the Company's revenue by geographic region for the fiscal years ended December 31, 2023 and December 31, 2022, based on the location of our unique customers:

up to 12 moon 31 day of the year,
2023	2022 year
revenue	HK$ million	HK$ million	fluctuation %
Geographic area
Europe	65.4	66.7	(1.9)	%
North America	48.4	45.1	7.3	％
South america	-	2.7	（ 100)	%
Asia and beyond	5.3	5.2	1.7	％
gross income	119.1	119.7	(0.5)	%

Cost of goods sold

For the financial year ended December 31, 2023, the cost of sales decreased to HK$97.0 million (US$12.4 million), a decrease of HK$3.9 million from HK$100.9 million for the same period in 2022.

The fluctuation in the cost of sales is consistent with the decline in our revenue over the same period.

Gross profit

up to 2023 year 12 moon 31 Gross profit for the fiscal year ended was 2210 HK$10,000 ( conjunction 280 $10,000 ) compare 2022 Year-synchronous 1880 HK$10,000 increase 330 HK$10,000.

In the financial year ending December 31, 2023, the COVID-19 pandemic has been successfully contained, and the adverse effects of the pandemic have gradually dissipated as economic activities return to normal. As a result, the supply and price of raw materials tended to stabilize during the year, resulting in a decrease in the company's average unit cost and an increase in gross profit during the year.

The Company's gross margin increased to 18.6% for the fiscal year ended December 31, 2023, compared to 15.7% for the fiscal year ended December 31, 2022.

Sales and marketing expenses

up to 2023 year 12 moon 31 For the fiscal year of the year, the sales and marketing expenses were 200 HK$10,000 ( conjunction 30 $10,000 ) compare 2022 Year-synchronous 210 HK$10,000 decreased 10 HK$10,000.

For the fiscal year ended December 31, 2023, sales and marketing expenses decreased compared to the same period in 2022, primarily due to a lower overall level of product transportation.

General and administrative expenses

up to 2023 year 12 moon 31 For the financial year of the year, general and administrative expenses are as follows 2022 year 12 moon 31 of the financial year 1,920 10,000 Hong Kong dollars increased 2,050 HK$10,000 (260 $10,000 ) , increased 130 HK$10,000.

This increase was mainly due to the gradual lifting of travel restrictions in China and Hong Kong during the financial year ending December 31, 2023, resulting in higher staff costs, transportation and travel expenses.

Operating profit (loss)

up to 2023 year 12 moon 31 For the financial year as of today, the operating loss is as follows 2022 year 12 moon 31 daily operating loss 250 HK$10,000 reduced to 40 10,000 Hong Kong dollars, decreased 210 HK$10,000.

The improvement in the financial performance of operations for the financial year ended 31 December 2023 was mainly due to the combined impact of an increase in gross profit of HK$3.4 million and a decrease in general and administrative expenses of HK$1.3 million for the financial year ended 31 December 2023.

Other income (expense) net

The main components of other income (expense) are exchange gains and losses, gains on disposal of property, plant and equipment, miscellaneous income, government grants and bank interest income.

up to 2023 year 12 moon 31 Other net income for the financial year ended the following amounts: 80 HK$10,000 ( conjunction 10 $10,000 ) compare 2022 Year-synchronous 1,300 HK$10,000 decreased 1,220 HK$10,000.

The decrease was mainly due to a decrease in plant and equipment disposal gains recognized for the fiscal year ended December 31, 2023.

Net profit (loss)

Net profit is determined by the end of 2022 year 12 moon 31 day 860 HK$10,000 reduced to the cut-off 2023 year 12 moon 31 The net loss of the day 150 HK$10,000 ( conjunction 20 $10,000 ) 。

The decrease in net profit in FY 2023 was mainly due to the cumulative impact of the above reasons.

Recent Events

The Company announced the completion of an initial public offering of 1,000,000 common shares (the "Common Shares") at a public offering price of $5.00 per share, for gross proceeds of $5,000,000, net of underwriting discounts and other offering expenses. The common stock began trading on the Nasdaq Capital Market on November 30, 2023 under the ticker symbol "FEBO".

About Hui Bao Holdings Limited

Headquartered in Hong Kong, Huibao Holdings has been in business for more than 30 years, and through operating subsidiaries in Hong Kong and Guangdong, Huibao Holdings manufactures and sells personal care appliances (mainly electronic hair products) and toy products to overseas markets. Since 2006, the company has also provided OEM and ODM services to its sole customer, Spectrum Brands, a world-renowned consumer goods and household essentials company, and manufactures Spectrum Brands' licensed "Remington" brand of electrical hairstyling products, which are currently sold in Europe, the United States and Latin America. For more information, please visit.

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements include statements regarding plans, objectives, strategies, future events or performance, as well as underlying assumptions and other statements that differ from statements of historical fact. The Company's use of words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar words that are not related to historical events constitute forward-looking statements. These forward-looking statements include, but are not limited to, statements by the Company regarding the Company's expected closing of the transaction and offering of its common stock on the Nasdaq Capital Market. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks, including, but not limited to, uncertainties relating to market conditions and uncertainties relating to the expected terms or completion of the initial public offering, and other factors discussed in the "Risk Factors" section of the registration statement filed with the Securities and Exchange Commission. For these reasons, investors are cautioned, inter alia, not to place undue reliance on any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the Securities and Exchange Commission, which are available at . The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances occurring after the date of this Agreement.

For more information, please contact :

Investor Relations Janice Wang, Investor Relations Email: [phone] [phone]