Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 52

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 3
Chunk 52
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 entities, see Item 7. “ Major Shareholders and Related Party Transactions.”

  31  

If securities or industry analysts do not publish
research or reports about our business and the business of our Operating Subsidiaries, or if they adversely change their recommendations
regarding our Ordinary Shares, the market price for our Ordinary Shares and trading volume could decline.

The trading market for our Ordinary
Shares will be influenced by research or reports that industry or securities analysts publish about our business and the business of our
Operating Subsidiaries. If one or more analysts downgrade our Ordinary Shares, the market price for our Ordinary Shares would likely decline.
If one or more of these analysts cease to cover us or fail to regularly publish reports on us, we could lose visibility in the financial
markets, which in turn could cause the market price or trading volume for our Ordinary Shares to decline.

The sale or availability for sale of substantial
amounts of our Ordinary Shares could adversely affect their market price.

As of the date of this
Annual Report, we have 11,062,500 Ordinary Shares issued and outstanding, 3,062,500 of which are freely tradable. The remaining
8,000,000, which are owned by our controlling shareholder, may also be sold in the public market in the future, subject to the
restrictions in Rule 144 and Rule 701 under the Securities Act. Sales of substantial amounts of our Ordinary Shares in the public
market or the perception that these sales could occur, could adversely affect the market price of our Ordinary Shares, and could
materially impair our ability to raise capital through equity offerings in the future. We cannot predict
what effect, if any, market sales of securities held by our controlling shareholder or any other shareholder or the availability of
these securities for future sale will have on the market price of our Ordinary Shares.

Short selling may drive down the market price
of our Ordinary Shares.

Short selling is the practice
of selling shares that the seller does not own but rather has borrowed from a third party with the intention of buying identical shares
back at a later date to return to the lender. The short seller hopes to profit from a decline in the value of the shares between the sale
of the borrowed shares and the purchase of the replacement shares, as the short seller expects to pay less in that purchase than it received
in the sale. As it is in the short seller’s interest for the price of the shares to decline, many short sellers publish, or arrange