Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 35

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 3
Chunk 35
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 Operating Subsidiaries.

As part of our business strategies
and future plans, we intend to expand our Operating Subsidiaries’ operations. While we have planned such expansion based on our
outlook regarding our Operating Subsidiaries’ business prospects, there is no assurance that such expansion plans will be commercially
successful or that the actual outcome of those expansion plans will match our expectations. The success and viability of our expansion
plans are dependent upon our ability to successfully implement our development projects, hire and retain skilled employees to carry out
our Operating Subsidiaries’ product development and new market strategies and future plans and implement strategic business development
and marketing plans effectively and upon an increase in demand for their products by existing and new customers in the future.

Further, the implementation of
our business strategies and future plans for our Operating Subsidiaries’ business operations may require substantial capital expenditure
and additional financial resources and commitments. There is no assurance that these business strategies and future plans will achieve
the expected results or outcome such as an increase in revenue that will be commensurate with our investment costs or the ability to generate
any cost savings, increased operational efficiency and/or productivity improvements to our Operating Subsidiaries’ operations. There
is also no assurance that we will be able to obtain financing on terms that are favorable, if at all. If the results or outcome of our
future plans do not meet our expectations, including if our Operating Subsidiaries fail to achieve a sufficient level of revenue or fail
to manage their costs efficiently, we may not be able to recover our investment costs, and our business, financial condition, results
of operations and prospects may be adversely affected.

  22  

Risks Related to Our Operating Subsidiaries’
Industry

An economic downturn may adversely affect consumer
discretionary spending and demand for our products and services.

Our personal care electric appliance
products may be considered discretionary items for consumers. Factors affecting the level of consumer spending for such discretionary
items include general economic conditions and other factors, such as consumer confidence in future economic conditions, consumer sentiment,
the availability and cost of consumer credit, levels of unemployment and tax rates. Unfavorable economic conditions may lead consumers
to delay or reduce purchases of our products and consumer demand for our products and services may not grow as we expect. Our sensitivity
to economic cycles and any related fluctuation in consumer demand for our products and services may have an adverse effect on our operating
results and financial condition.

Risks