Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 1

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 3
Chunk 1
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 lose all or part of
your investment.

We rely on dividends and other distributions
on equity paid by our Operating Subsidiaries to fund our cash and financing requirements, and any limitation on the ability of our Operating
Subsidiaries to make payments to us could have a material adverse effect on our ability to conduct our business.

Our Company is a holding company,
and we rely on dividends and other distributions on equity paid by our Operating Subsidiaries for our cash and financing requirements.
Within our direct holding structure, the cross-border transfer of funds within our corporate group is legal and compliant with the laws
and regulations of the BVI, PRC, Hong Kong and the Cayman Islands. Our Operating Subsidiaries are permitted under the respective laws of China and
Hong Kong to provide funding to us through dividends without restrictions on the amount of the funds, other than as limited by the amount
of their distributable earnings. However, to the extent 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 Hong Kong due to interventions or the imposition
of restrictions and limitations by the PRC or the Hong Kong government on the ability to transfer cash. In addition, if any of our subsidiaries
incurs debt on its own behalf in the future, the instruments governing such debt may restrict their ability to pay dividends to us.

After
investors’ funds enter FHL, the funds can be directly transferred to RLHL, which can then directly transfer the funds to AIL and
FIL, and FIL can then transfer the funds to FPPF. If the Company intends to distribute dividends, FPPC will transfer the dividends to
FIL in accordance with the laws and regulations of the PRC and FIL will then transfer the funds to RLHL, and/or AIL will transfer the
funds to RLHL in accordance with the laws of Hong Kong. RLHL will then transfer the funds to FHL and FHL will then distribute the dividends
to all of its shareholders respectively in proportion to the Ordinary Shares they hold in accordance with the laws and regulations of
the Cayman Islands, regardless of whether the shareholders are U. S. investors or investors in other countries or regions.

Under the laws of the Cayman Islands
and our Articles of Association, our Company is permitted to provide funding to its subsidiaries through loans or capital contributions,
provided that such funding is in the best interest