Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 0

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 3
Chunk 0
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ITEM 3. KEY INFORMATION

A. RESERVED

B. CAPITALIZATION AND INDEBTEDNESS

Not applicable

C. REASONS FOR THE OFFER AND USE OF PROCEEDS.

Not applicable

D. RISK FACTORS

An investment in our Ordinary
Shares is highly speculative and involves a significant degree of risk. The risks discussed below could materially and adversely affect
our business, prospects, financial condition, results of operations, cash flows, ability to pay dividends and the trading price of our
Ordinary Shares. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially
and adversely affect our business, prospects, financial condition, results of operations, cash flows and ability to pay dividends, and
you may lose all or a part of your investment. The realization of any of the risks described below could have a material adverse effect
on our business, results of operations and future prospects.

   4  

Risks Related to Our Business and Corporate Structure

We have continually suffered losses from operations,
and we may not be able to sustain profitability.

Our losses from operations for
the years ended December 31, 2022, 2023 and 2024 were HK$2.5 million, HK$0.4 million and HK$14.4 million, respectively. The decrease in
loss from operations of HK$2.1 million during the year ended December 31, 2023 compared to the year ended December 31, 2022 was primarily
due to an increase in gross profit of HK$3.3 million. However, revenue for the year ended December 31, 2023 remained the same as the prior
year and general and administrative expenses increased by HK$1.2 million during the year ended December 31, 2023. The increase in loss
from operations of HK$14 million during the year ended December 31, 2024 compared to the year ended December 31, 2023 was primarily due
to an increase in general and administrative expenses of HK$16.5 million, which was due mainly to an increase in legal and professional
fees (including a marketing consultancy fee paid) and staff costs as a result of the expansion in the Group’s business during the
fiscal year ended December 31, 2024.

If we fail to generate sufficient
revenues to operate profitably on a consistent basis or if we are unable to fund our continuing losses, you could