Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 3

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 3
Chunk 3
---
 Subsidiaries for the fiscal years ended December 31, 2024, 2023 or 2022, and through the date of this Annual Report,
to fund their business operations. In the future, any cash proceeds raised from overseas financing activities may be transferred by us
to our Operating Subsidiaries via capital contribution or shareholder loans, as the case may be.

Moreover, to the extent that cash
is in our PRC or Hong Kong Operating Subsidiaries, there is a possibility that the funds may not be available to fund our operations or
for other uses outside of the PRC or Hong Kong due to interventions or the imposition of restrictions and limitations by the PRC or Hong
Kong government on the ability to transfer cash. Any limitation on the ability of our Operating Subsidiaries to pay dividends or
make other distributions to us could materially and adversely affect our financial position and the value of our Ordinary Shares.

Our corporate structure may involve unique risks
and could be disallowed by Chinese regulatory authorities. Any PRC regulations pertaining to our corporate structure, loans to and investment
in PRC entities by offshore holding companies may delay us from making loans or capital contributions to our Operating Subsidiaries, which
could materially and adversely affect their liquidity and their ability to fund and expand their businesses, which could cause our Ordinary
Shares to significantly decline in value or become worthless.

With regards to our corporate
structure, any funds we may transfer to our PRC Operating Subsidiary, either as a loan or as an increase in registered capital, are subject
to approval by or registration with relevant government authorities in China, regardless of the amount of the transfer. According to the
relevant PRC regulations, capital contributions to our PRC Operating Subsidiary are subject to the submission of reports of changes through
the enterprise registration system and registration with a local bank authorized by the State Administration
of Foreign Exchange(“ SAFE”). In addition, any foreign loan procured by our PRC Operating Subsidiary is required to
be registered with SAFE, and such loan also is required to be registered with the National Development and Reform Commission (“ NDRC”).
We may not be able to complete such registrations or obtain necessary approvals on a timely basis with respect to future capital contributions
or foreign loans by us to our PRC Operating Subsidiary. If we fail to complete such registration or other procedures, our ability to maintain
our corporate structure while capitalizing our PRC Operating Subs