Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 28

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 3
Chunk 28
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, Value-Added Tax. As of the date of this Annual Report, our PRC Operating Subsidiary has received all necessary governmental approvals
and licenses for operations in the PRC and has not been denied any such licenses or approvals.

  18  

Moreover, our Operating Subsidiaries
are also subject to laws, regulations and policies relating to the protection of the environment and to workplace health and safety and
may be adversely affected by new and changing laws and regulations. They are required to adopt measures to control the discharge of polluting
matters, toxic substances or hazardous substances and noise at their facilities in accordance with such applicable laws and regulations
and to implement such measures that ensure the safety and health of their employees. Changes to current laws, regulations or policies
or the imposition of new laws, regulations and policies in the personal care electric appliance industry could impose new restrictions
or prohibitions on their current practices. Our Operating Subsidiaries may incur significant costs and expenses and need to budget additional
resources to comply with any such requirements, which may have a material and adverse effect on their business, financial condition, results
of operations and prospects.

As of the date of this Annual
Report, our Operating Subsidiaries have received all substantial and necessary governmental approvals for operations in the PRC and Hong
Kong. However, in the event that our Operating Subsidiaries fail to renew the relevant licenses or filings, there is no assurance that
our Operating Subsidiaries can find suitable suppliers in a timely manner or on reasonable commercial terms, or that such suppliers will
at all times perform in a satisfactory level. Therefore, our Operating Subsidiaries’ business, reputation, prospects, results of
operations and financial condition may be materially and adversely affected. For further discussion, including the possible consequences
for non-compliance, see “ Regulatory Environment.”

Significant changes in or our compliance with
regulations, interpretations or product certification requirements could adversely impact our operations.

We are subject to U. S. and foreign
regulations, including environmental, health and safety laws, and industry-specific product certifications. The products we sell are subject
to product safety laws and regulations in various jurisdictions. These laws and regulations specify product safety testing requirements
and set product identification, labeling and claim requirements.

Significant new regulations, material
changes to existing regulations, or greater oversight, enforcement, or changes in interpretation of existing regulations, could further
delay or interrupt distribution of our products in the U. S.