Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 80

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 4
Chunk 80
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) years commencing January 1, 2023 at a monthly rent of HK$50,000 (approximately US$6,400).
The rent paid to Mr. Li Kin Shing was determined according to the market value of similar property quotes from the Hong Kong property
market. Upon the expiry of the initial lease term, FIL renewed the lease agreement with Mr. Li to lease the office for an additional term
of two (2) years, commencing January 1, 2025, for the same monthly rent.

FPPF has leased our factory
and staff quarters in the PRC for a term of 10 years from an independent third party since 2014. The initial annual rent was
approximately RMB3.5 million and increased by 10% every three years. Upon the expiry of the initial lease term, FPPF renewed the
lease for an additional term of three years, commencing July 16, 2024, for an annual rent of RMB6.1 million, such amount to increase
by 7% for the third year.

  50  

Legal Proceedings

As of the date of this Annual
Report, neither we nor our Operating Subsidiaries are party to, nor are we or our Operating Subsidiaries aware of any threat of, any legal
proceeding that, in the opinion of management, is likely to have a material adverse effect on our business, financial condition or operations.

From time to time, our Operating
Subsidiaries may become involved in legal proceedings arising in the ordinary course of business. Neither we nor our Operating Subsidiaries
are involved in any litigation, arbitration or claim of material importance, nor any material impact non-compliance incidents or systemic
non-compliance incidents in respect of applicable laws and regulations.

Impact of COVID-19 on our Operating Subsidiaries’
business and operations

The continuous emergence of
new series of COVID-19 variants during the years, the variation in vaccination rollout globally and a new series of travel and
transportation restrictions had contributed consequential impact to the differences in the economic recovery and the increase in
material lead time and transportation time. In addition, there was high demand for various raw materials which caused the breakdown
of a number of supply chains and led to rising costs of certain raw materials (e. g., plastic) and global inflationary pressures.
Energy crises and international political dynamics had further hampered the pace of the recovery of the world economy. As of