Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 9

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 3
Chunk 9
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 by investors,
financial commentators and regulatory agencies. Much of the scrutiny has centered on financial and accounting irregularities and mistakes,
lack of effective internal controls over financial reporting and, in many cases, allegations of fraud. The Chinese government also may
exercise significant oversight and discretion over the conduct of our business in China and Hong Kong and may intervene or influence our
Operating Subsidiaries’ operations at any time, which could result in a material change in their operations and/or the value of
our Ordinary Shares. Moreover, as a result of this scrutiny, the publicly traded stock of many U. S.-listed Chinese companies that have
been the subject of such scrutiny has sharply decreased in value. Many of these companies are now subject to shareholder lawsuits and/or
SEC enforcement actions that are conducting internal and/or external investigations into the allegations.

Although we are based in Hong
Kong, if we should become the subject of any such scrutiny, whether any allegations are true or not, we may have to expend significant
resources to investigate such allegations and/or defend the Company. Such investigations or allegations would be costly and time-consuming,
likely would distract our management from our normal business and could result in our reputation being harmed. The price of our Ordinary
Shares could decline because of such allegations, even if the allegations are false.

There are political risks associated with conducting
business in Hong Kong.

Any adverse economic, social and/or
political conditions, material social unrest, strike, riot, civil disturbance, or disobedience, as well as significant natural disasters,
may affect the market and adversely affect the business operations of the Company. Hong Kong is a special administrative region of the
PRC, and the basic policies of the PRC regarding Hong Kong are reflected in the Basic Law, Hong Kong’s constitutional document,
which provides Hong Kong with a high degree of autonomy and executive, legislative and independent judicial powers, including that of
final adjudication under the principle of “one country, two systems.” However, there is no assurance that there will not be
any changes in the economic, political and legal environment in Hong Kong in the future. Since our operation is based in Hong Kong, any
change of such political arrangements may pose an immediate threat to the stability of the economy in Hong Kong, thereby directly and
adversely affecting our results of operations and financial position.

   9  

Under the Basic Law of the Hong
Kong Special Administrative Region of the People’s Republic of China, Hong Kong is exclusively in charge of its internal affairs
and