Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 6

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 3
Chunk 6
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 significant degree by political,
economic and social conditions in Hong Kong and China generally. The Chinese economy differs from the economies of most developed countries
in many respects, including the amount of government involvement, level of development, growth rate, control of foreign exchange and allocation
of resources. While the Chinese economy has experienced significant growth over the past decades, growth has been uneven, both geographically
and among various sectors of the economy. The Chinese government has implemented various measures to encourage economic growth and guide
the allocation of resources. Some of these measures may benefit the overall Chinese economy but may have a negative effect on our PRC
Operating Subsidiary.

   7  

Economic
conditions in Hong Kong and China are sensitive to global economic conditions. Any prolonged slowdown in the global or Chinese economy
may affect our current customer’s and potential customers’ businesses and have a negative impact on our Operating Subsidiaries’
businesses, results of operations and financial condition. Additionally, continued turbulence in the international markets may adversely
affect our ability to access the capital markets to meet liquidity needs.

Changes in the policies, regulations and rules,
and the enforcement of laws of the PRC government may be implemented quickly with little advance notice and could have a significant impact
upon our Operating Subsidiaries’ ability to operate profitably in the PRC. The PRC legal system also embodies uncertainties, which
could limit law enforcement availability. Therefore, our assertions and beliefs of the risk imposed by the PRC legal and regulatory system
cannot be certain.

The PRC
legal system is a civil law system based on written statutes. Unlike common law systems, decided legal cases have little precedence. In
1979, the PRC government began to promulgate a comprehensive system of laws and regulations governing economic matters in general. The
overall effect of legislation over the past several decades has significantly enhanced the protections afforded to various forms of foreign
investment in China. Our Operating Subsidiaries are subject to PRC laws and regulations. However, these laws and regulations change frequently,
and the interpretation and enforcement thereof involve uncertainties. For instance, we may have to resort to administrative and court
proceedings to enforce the legal protections to which we are entitled to by law or contract. However, since PRC administrative and court
authorities have significant discretion in interpreting statutory and contractual terms, it may be difficult to evaluate the outcome of
administrative court proceedings and the level of law enforcement that we would receive in more developed legal systems.