Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 152

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 10
Chunk 152
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 will be approved. Furthermore,
we cannot guarantee that, once listed, our Ordinary Shares will continue to be listed and regularly traded on such exchange. U. S. Holders
are advised to consult their tax advisors as to whether the Ordinary Shares are considered marketable for these purposes.

  92  

If an
effective mark-to-market election is made with respect to our Ordinary Shares, the U. S. Holder will generally (i) include as ordinary
income for each taxable year that we are a PFIC the excess, if any, of the fair market value of Ordinary Shares held at the end of the
taxable year over its adjusted tax basis of such Ordinary Shares; and (ii) deduct as an ordinary loss the excess, if any, of its adjusted
tax basis of the Ordinary Shares held at the end of the taxable year over the fair market value of such Ordinary Shares held at the end
of the taxable year, but only to the extent of the net amount previously included in income as a result of the mark-to-market election.
The U. S. Holder’s adjusted tax basis in the Ordinary Shares would be adjusted to reflect any income or loss resulting from the mark-to-market
election. If a U. S. Holder makes an effective mark-to-market election, in each year that we are a PFIC, any gain recognized upon the sale
or other disposition of the Ordinary Shares will be treated as ordinary income and loss will be treated as ordinary loss, but only to
the extent of the net amount previously included in income as a result of the mark-to-market election.

If a
U. S. Holder makes a mark-to-market election in respect of a PFIC, and such corporation ceases to be a PFIC, the U. S. Holder will not be
required to take into account the mark-to-market gain or loss described above during any period that such corporation is not a PFIC.

Because
a mark-to-market election generally cannot be made for any lower-tier PFICs that a PFIC may own, a U. S. Holder who makes a mark-to-market
election with respect to our Ordinary Shares may continue to be subject to the general PFIC rules with respect to such U. S. Holder’s
indirect interest in any of our non-United States subsidiaries if any of them is a PFIC.

If a
U. S. Holder owns our Ordinary Shares during any taxable year that we are a PFIC, such holder would generally be required to file an annual