Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 34

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 3
Chunk 34
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 2023 and
2022, our Operating Subsidiaries did not record any impairment/reversal of accounts receivables. However, our Operating Subsidiaries
are still subject to the credit risk of their customers and their liquidity is dependent on their customers making prompt payments.

Furthermore, our Operating Subsidiaries’
suppliers generally offer them a credit period of 30 days to 60 days, while our Operating Subsidiaries generally grant their customers
a credit period ranging from 30 days to 90 days. The longer credit period granted to our Operating Subsidiaries’ customers compared
to that offered by their suppliers indicates a potential risk of a possible cash flow shortage, which may affect the liquidity of their
business. In the event that our Operating Subsidiaries experience a cash flow shortage when their customers do not make settlements on
a timely manner, the financial position, profitability and cash flow of our Operating Subsidiaries may be adversely affected.

Our Operating Subsidiaries may be harmed by
negative publicity.

Our Operating Subsidiaries operate
in highly competitive industries, and there are other companies in the market that offer similar products and services. They derive most
of their customers through word of mouth and rely on the positive feedback of their customers. Thus, customer satisfaction with our Operating
Subsidiaries’ products is critical to the success of their business. If our Operating Subsidiaries fail to meet our customer’s
expectations, there may be negative feedback which may have an adverse impact on our Operating Subsidiaries’ business and reputation.
In the event that our Operating Subsidiaries are unable to maintain a high level of customer satisfaction, or any customer dissatisfaction
is inadequately addressed, our Operating Subsidiaries’ business, financial condition, results of operations and prospects may also
be adversely affected.

Our Operating Subsidiaries’
reputation may also be adversely affected by negative publicity in reports and publications such as major newspapers and forums or any
other negative publicity or rumors. There is no assurance that our Operating Subsidiaries will not experience negative publicity in the
future or that such negative publicity will not have a material and adverse effect on their reputation or prospects. This may result in
our Operating Subsidiaries’ being unable to attract new customers or retain existing customers and may in turn adversely affect
their business and results of operations.

We may be unable to successfully implement our
business strategies and future plans for our