Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 178

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 18
Chunk 178
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 (loss) consists of two components, net income (loss) and other comprehensive income (loss). Other comprehensive income (loss)
refers to revenue, expenses, gains and losses that under US GAAP are recorded as an element of shareholders’ equity but are
excluded from net income. Other comprehensive income (loss) consists of a foreign currency translation adjustment resulting from the
Company not using HK$ as its functional currencies.

Earnings
per share

The
Company computes earnings per share (“ EPS”) in accordance with ASC 260, “ Earnings per Share”. ASC 260
requires companies to present basic and diluted EPS. Basic EPS is measured as net income attributable to the owners of the Company
divided by the weighted average ordinary shares outstanding for the period. Diluted EPS presents the dilutive effect on a per share
basis of the potential ordinary shares (e. g., convertible securities, options and warrants) as if they had been converted at the
beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i. e.,
those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the years
ended December 31, 2024, 2023 and 2022, there were no dilutive shares.

Statutory
Reserves

Pursuant
to the laws applicable to the PRC, PRC entities must make appropriations from after-tax profit to the non-distributable “statutory
surplus reserve fund”. Subject to certain cumulative limits, the “statutory surplus reserve fund” requires annual appropriations
of 10% of after-tax profit until the aggregated appropriations reach 50% of the registered capital (as determined under accounting principles
generally accepted in the PRC (“ PRC GAAP”) at each year-end). For foreign invested enterprises and joint ventures in the
PRC, annual appropriations should be made to the “reserve fund”. For foreign invested enterprises, the annual appropriation
for the “reserve fund” cannot be less than 10% of after-tax profits until the aggregated appropriations reach 50% of the
registered capital (as determined under PRC GAAP at each year-end). If the Company has accumulated loss from prior periods, the Company
is able to use the current period net income after tax to offset against the accumulate loss.

Commitments
and Contingencies

In
the normal course of business, the Company is subject to contingencies