Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 8

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 3
Chunk 8
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 notice, including cracking down on illegal activities in the securities market, enhancing supervision over China-based
companies listed overseas using a variable interest entity (“ VIE”) structure, adopting new measures to extend the scope of
cybersecurity reviews and expanding the efforts in anti-monopoly enforcement. These regulatory actions and statements emphasize the need
to strengthen the administration over illegal securities activities and the supervision of China-based companies seeking overseas listings.
Additionally, companies are required to undergo a cybersecurity review if they hold large amounts of data related to issues of national
security, economic development or public interest before carrying out mergers, restructuring or splits that affect or may affect national
security. These statements were recently issued, and their official guidance and interpretation remain unclear at this time. While we
believe that our Operating Subsidiaries’ operations are not currently being affected, they may be subject to additional and stricter
compliance requirements in the near term. Compliance with new regulatory requirements or any future implementation rules may present a
range of new challenges which may create uncertainties and increase our Operating Subsidiaries’ cost of operations.

The Chinese government may intervene
or influence our Operating Subsidiaries’ operations at any time and may exert more control over offerings conducted overseas and
foreign investment in China-based issuers, which may result in a material change in our Operating Subsidiaries’ operations and/or
the value of our Ordinary Shares. Any legal or regulatory changes that restrict or otherwise unfavorably impact our Operating Subsidiaries’
ability to conduct their operations could decrease demand for their services, reduce revenues, increase costs, require them to obtain
more licenses, permits, approvals or certificates or subject them to additional liabilities. To the extent that any new or more stringent
measures are implemented, our business, financial condition and results of operations could be adversely affected, and our Ordinary Shares
could decrease in value or become worthless.

Although we are based in Hong Kong and conduct
operations in China and Hong Kong, if we should become subject to the recent scrutiny, criticism and negative publicity involving U. S.-listed
China-based companies, we may have to expend significant resources to investigate and/or defend the allegations, which could harm our
Operating Subsidiaries’ business operations and our reputation and could result in a loss of investment in our Ordinary Shares if
such allegations cannot be addressed and resolved favorably.

During the last several years,
U. S. listed public companies that have substantially all of their operations in China have been the subject of intense scrutiny